Money Talks!

My word is my bond! That expression held great meaning to buyers and sellers in the "old" days. Most Bahamas real estate sales were made with a handshake and a verbal promise to complete the transaction at some future date.

Later, as a show of their good intentions, purchasers would give sellers a deposit to be held until the sale was sealed. This deposit had more ceremonial significance than monetary assurance of a completed sale.

Today, deposits are a part of every Bahamas real estate transaction to make the agreement binding. The amount is usually 10%, but the deposit is negotiable between buyers and sellers.

There is, however, a strong message attached to the amount of money tendered by purchasers. As the saying goes, "Money talks!" If vendors are presented with two identical offers on their home, one with a 10% deposit, and the other with a 5%, deposit which do you think they are most likely to accept? Sellers believe the higher deposit indicates buyers who are more qualified to complete the purchase.

Having said that, understand that the deposit money is just one factor to be considered when buying or selling a property. The amount of the deposit is relative and depends on the unique nature of each property. More information is available from your Bahamas real estate professional.