Guide to Buying a Property in Barbados

by Junior Sparks, Global Estates Agency

The Barbados real estate market is very active at the moment, however there are only a few active listings for properties within the price range of BDS$200,000 to BDS$1.4 Million. This means that most of the properties on the market right now are going under offer even quicker!

It is best to hire a reputable and professional real estate agent that you can trust to work in your best interest. Global Estate Agency Inc, run by myself- a top producing and well connected real estate broker on the Island, with over 19 years of experience representing both buyers and sellers. GEA deals with all types of properties, including standalone houses, apartments, townhouses, multi-unit blocks and commercial properties.

In this article, I’ll take you through the step-by-step procedure to secure a property in Barbados, from arranging your financing to closing the deal.

Step 1 - Get your financing in place.

Do you need help arranging a mortgage or loan? Ensure you get pre-qualified with a lender before touring homes and submitting offers. Sellers don’t take offers seriously when the buyer is not already pre-qualified with a lender, and it reduces your chances of getting your offer accepted. It is best to seek financing before submitting an offer to know whether you qualify for the price region of the offer. If you are looking for a reputable lender in Barbados, you’ll be happy to know that there are a number of them offering competitive mortgage rates to citizens and international buyers. Hiring a reputable mortgage broker can make the process of securing financing much easier.

Step 2 – Note all of your important preferences

Now that your financing is secured, the next step is to make a list of all of your preferences in the order of importance. Ensure that the list covers everything, from how many bedrooms you need, to whether the location need to be close to work or school, to the type of property you are looking for. Do you want a house or apartment? Do you want to live in an open neighbourhood or gated community? Does the covenants allow pets or for commercial vehicles to be parked on the street?

Step 3 – Understand the buying process in Barbados

A professional real estate agent should explain the details of the buying process to the client. You should understand the various steps like making an offer, negotiation, and getting your offer accepted. Your agent would also let you know when to get your attorney and the seller’s attorney involved. You are required to hire a registered Barbados attorney to represent you throughout the legal process of the sale transaction.

Step 4 – Choosing a Real Estate Agent

Don’t hire the wrong real estate agent! Do your research to ensure that you will be dealing with a professional that holds their practices to a high standard and code of ethics. One sure way to achieve this is to choose an agent who is a member of the Barbados Estate Agents and Valuers Association (BEAVA). Being a BEAVA member comes with multiple advantages. The agent has access to hundreds of listings on the island, outside of their own. This is because the Association has over a hundred members, and each agent can access the properties listed by other agents. Hiring multiple agents does not necessarily increase your chances of securing an offer, but can make it a bit messy as your name/property search gets duplicated within the same pool of agents for the same listings.

Step 5 – Viewing Properties

Keep an open mind when looking at properties. Have a vision before going on each tour so that you can look past the seller’s design and furniture choices when making a decision. Simple things like furniture can easily be changed but your focus should be on the structure and layout of the property.

Step 6 – Making an Offer

After finding a property that meets all your preferences, be sure to review the neighbourhood covenants and carry out any property inspections via a building engineer. Still want to proceed? The next step is to make an offer as soon as possible. Inform your agent about your budget and refrain from making a low-ball offer because sellers tend to feel insulted by this kind of offer and are likely to decline your offer. Your agent will keep you updated with feedback from the seller.

Step 7 – Signing the Offer and Acceptance Form

If the response to your offer is positive, a document called an Offer and Acceptance Form must be completed and signed by the buyer and seller. If you aren’t a cash buyer, your lender would give you the all clear on when to involve your attorney and start the legal process.

Step 8 – Time for the attorneys to start the legal process.

Your attorney will guide you on the legal process and provide you with a quote for the legal fees involved.