Understanding The Selling Process In Bermuda
Friday Mar 11th, 2022
So, you've decided to put your Bermuda house on the market. Whatever else is going on in the world, selling your home is always a major event. You've undoubtedly made a lot of memories there, and you've put a lot of time, money, and effort into making it a special place. Remember, if selling is the best option for you and your family, it's well worth the effort!
If you're ready to make a move, you'll want to do it wisely. This article will teach you how to sell your home in Bermuda quickly and for the highest possible price.
Let's get this party started!
7 Steps to Selling Your House in Bermuda
It's a big step to sell your home in Bermuda and move, but it doesn't have to be traumatic. These seven steps will teach you how to sell a house properly.
- Locate A Great Real Estate Agent.
Real estate agents are plentiful. That is why you do not require the services of just any agent. To sell your Bermuda home in the best possible way, you'll need the proper local agent. Find someone who will go above and above for you, negotiate the greatest price, and sell your home quickly! While it may be tempting to enlist the help of a family, a church acquaintance, or your cousin's husband's friend, always go with a vetted expert who has experience and can sell your home for the greatest money in the shortest amount of time!
- Find the Right Selling Price
The goal is to consider the value of your home objectively. If you've spent enough time in your home to form sentimental attachments, your judgment may be clouded. So, while estimating how much your home might sell for, stick to the facts as much as feasible.
Request a comparative market analysis from a real estate agent to estimate the worth of your home (CMA). This free analysis compares your house to properties in your neighborhood that are similar in size, have similar features, are now on the market, or have just sold. The comparison enables your agent to better forecast what buyers would pay for your home and set a competitive price based on facts rather than emotion.
- Create a timeline for selling your home.
If you know when you want to put your house on the market, divide your to-do list into small, bite-size chunks so you know where to begin when it comes to selling your home. The timeline below can help you get started, but you should alter it to fit your specific goals and schedule.
2–3 months prior to putting your home on the market
- Engage the services of a house inspector: Identifying problems early in the home-selling process allows you to factor repair costs into your budget so they don't derail your offer later.
- Repairs: Ask your agent where your repair money will go the furthest.
1–2 months prior to putting your home on the market
- To begin, stage the home space: Create an attractive environment that allows purchasers to envision the home as their own.
- Deep cleaning: Scrub all surfaces until they are gleaming. Make your carpets and rugs look—and smell—like new again by hiring a professional.
- Apply the finishing touches: Make your home picture-perfect so that your photographer can catch it in its best light.
Making a plan—and then sticking to it—is the key to keeping stress at bay in the weeks and months leading up to putting your Bermuda property on the market.
- Get a house inspection before you sell it.
Although a pre-sale house inspection is not required, it might be a good investment. Before you put your house on the market, get a full inspection report to find out if there are any structural or mechanical issues. It may cost a few hundred dollars, but it will notify you ahead of time of any faults that purchasers are likely to notice during their own inspection later in the process.
Sellers may be able to speed up the selling process by performing repairs concurrently with other house preparation work if they are a few steps ahead of the buyer. This means that when the house goes on the market, it should be ready to sell swiftly and without drama.
- Prepare your home for potential buyers by staging it.
It's time to set the stage and show off your home's best features once it's in good functioning order. It all starts with a thorough cleaning. Start by scrubbing the surfaces, applying a fresh coat of paint, carpet cleaning, and decluttering are all relatively low-cost and low-lift jobs that will have a significant influence on the first impression of your property.
After you've cleaned up your house, you may start staging. Maintain a neutral color scheme and attempt to depersonalize as much as possible. Remove the majority of your family images so that purchasers may imagine themselves in your home with their own families. Closets are always vital to property buyers, so store out-of-season clothing and other random items to give the sense of space. When in doubt, go for less.
- List Your Home on the Market
The next step is to implement a comprehensive marketing strategy to ensure that your home receives the most exposure possible. Your agent will design a well-rounded strategy to reach buyers through a variety of channels, including in-person and online.
You may rely on your agent to do the following:
- Upload images to the MLS: To formally make your listing active, upload your property description and photos to the multiple listing service. Your MLS house listing will be syndicated to the most popular real estate websites, capturing the attention of online home buyers.
- Make use of social media: Use great photographs, interesting language, and targeted hashtags and location tags to promote your listing on social media platforms like Facebook and Instagram.
- Make a list of other agents to contact: Make connections with local buyer's agents to bring house buyers seeking in your area and price range to the table.
- Erect signs: Place that instantly recognizable for-sale sign in the front yard to attract attention.
- Organize open houses: Determine whether an open house would benefit your home selling. As an alternative, consider holding a virtual open house.
- Complete the transaction.
Completing a sale is a complicated procedure; your REALTOR is there so you can simply sign the paperwork and go on with packing up your belongings; they will handle dealing with the attorney and the legal documents required to complete a transaction. Once negotiations are complete and everything is agreed, the completion process will take place, here are the steps that you will take when closing the deal:
- 10% good faith deposit is made by the purchaser
- Sales agreement is drawn up and signed by both parties
- The buyer will secure financing
- The title search of your home will be complete
- A professional appraisal of the home will be conducted by the lender to confirm the homes actual value matches the selling price
- Any contractual promises you have made, such as repairs, etc. will be carried out
- Final walk-through for the buyer
- Fees will be paid, balance will be transferred by the buyer, and the transfer of the title will take place.
How Much Does It Cost to Sell Your House?
Even though you will most likely profit from the sale of your Bermuda home, you will incur certain home-selling expenses. How much you wind up paying from start to finish is determined by the sale price of your property, the repairs that must be made, and the time it takes to make your home ready to list.
Here are some of the costs you may need to prepare for:
- Real estate commission. As the seller, you will be responsible for paying the real estate commission, which is shared between the buyer's agency and your listing agent. Typically, the commission is 5% of the home's sale price.
- Stamp Duty. When you are selling a home in Bermuda, there is no sale tax or capital gains tax, however the seller is typically responsible for paying 50% of the stamp duty
Stamp duty is calculated as follows:
- First $100,000 - 2%
- next $400,000 - 3%
- next $500,000 - 4%
- next $1,000,001 but not exceeding $1,500,000- 6%
- Everything over $1,500,000- 7%
- Legal Fees. Sellers are also responsible for legal fees for conveyancing which are set by the Bermuda Bar Association as follows:
- First $250,000 – 1%
- Next $250,000 – 0.75%
The rate then continues to decrease as the price of the property increases, until the price is $2,000,000 or more, and the rate charged is 0.125%. The legal fees are generally split between seller and buyer equally, with each party being responsible for any
This article is for educational purposes and the figures used throughout the article are estimates and subject to changes across lenders, government agencies, and vendors. Like with any financial decision, it is important that you reach out to a local real estate professional and attorney for proper guidance before selling your home in Bermuda.