It appears that the world wide real estate market is showing some signs of recovery in 2010 and this will slowly effect our local real estate market in a positive way. On Grand Bahama Island we never have experienced the real estate boom so fortunately we were spared the bust that our neighbors across the water experienced. Our banking system has always leaned towards conservative loans so they never found themselves with the volume of bad loans like the banks in the States.
As anyone who has tried to get a mortgage from the local banks knows the banks do a very thorough job and they do not make it easy to borrow money. However if you look at the high unemployment rate in Freeport and look at the bank ads for foreclosed property you will see we have a lot of properties that the banks are still forced to liquidate due to our economy. So what does all this mean for our local real estate market. Well for one it is very much a buyers market so if you are in a position to buy there are some great deals out there. My advice to “would be” buyers is to work with your licensed BREA (Bahamas Real Estate Association) broker to find the deals and make an offer. The only way you will ever know what a seller will accept for their property is to make an offer.
The real estate agent does not own the property so they can not tell you exactly what a seller will accept because if you make an offer below the list price it will be up to the seller to accept or reject the offer. When you make a formal offer through your BREA broker you will get an acceptance or at least a counter offer of what the seller will accept. If you don’t make an offer you will never know.
Now you’ve done your due diligence, found a great deal, made an offer and bought your house you are probably breathing a sigh of relief once you’ve finished moving into your home, thinking, “we’ll never move out of this house”. But always keep in mind that sooner or later you may one day move from this “dream” property so it is very important to maintain the house to protect your investment. We have found at Coldwell Banker James Sarles Realty that even the most satisfied owners over time have a reason to sell their dream home. Unexpected circumstances such as job relocation, health crises or changes in marital status may require you to put your home on the market. Suddenly, the value of your property is a major issue. For those of you who have lived in your house for a number of years, chances are you have postponed a few needed repairs and upgrades. Homeowners who plan on remaining in their homes indefinitely can develop a tendency to overlook the little things that go wrong – leaky faucets, stained carpets, aging appliances that somehow keep working but lose energy efficiency with every passing day. You think, “I’ll fix that next weekend”, but you go out fishing or watch your favorite sports event instead, and eventually cover the carpet stain with an attractive new throw rug.
But once it’s time to sell your home, those “little problems” can suddenly add up to a long list of deferred maintenance items. When someone puts a serious offer on your property, the potential buyer’s home inspector will go over your house with a discriminating eye trained to notice features that either add to or detract from the value of your investment. A prospective purchaser who notices the carpet stain will immediately be on the lookout for other blemishes. As a seller, you will either need to take care of these issues as a condition of the sale or reduce the selling price to compensate the buyer for making the needed repairs later on.
There are two effective ways to increase the resale value of your home while you live in it. The first is to handle repairs as they come up. Replace the worn kitchen faucet now and you will conserve water and eliminate an irritating drip that you won’t have to listen to. Each time you fix something, you improve the quality of your home life while reducing the list of problems the home inspector will find.
The second way to protect the resale value of your home is to enhance your house with new features and facilities that make it a more comfortable place to live. Start by deciding which rooms or systems could benefit from upgrading, and then ask your real estate agent to recommend a local contractor who specializes in remodeling.
Renovations that add value to a property include additional bedrooms, central air conditioning, improved kitchens and upgraded bathrooms. Renovations could include a three-car garage, a media room with built-in viewing screens, or a master suite with breakfast sunroom, walk-in closets and a luxury bathroom. Popular amenities that attract the attention of buyers include high-speed Internet wiring, home security systems and kitchen features such as an oversized sub-zero stainless steel refrigerator, a double convection oven and a built-in wine storage area.
Protect the resale value of your property with a winning blend of timely home maintenance and well-chosen home improvements, and you will never regret your diligence. Until Next week.
