A leading Exuma-based real estate agent is praising the government's recent move to clarify stamp duty calculation, saying in many cases prices are still 30 percent below those recorded in the heyday of the island chain's real estate sector.

The real estate community had been disturbed recently by more occurrences of Treasury assessors calculating stamp duty on real property tax valuations, as opposed to the invoice price.  It created uncertainty about the costs involved in a real estate transaction.  In the case of the Out Islands, Exuma in particular, one agent said some assessments were far above market value.

"Some properties seemed to get very fair appraisals, and others got extremely unfair appraisals: I think based on those very crazy prices we were seeing during 2004-2006, especially in Exuma when we had the Four Seasons Hotel and prices really ratcheted up quite a lot," Judy Hurlock, associate with Coldwell Banker/Lightbourne Realty told this newspaper yesterday.

"The market is what it is today.  People are paying, in some instances, 30 percent of the original listing prices, if those properties have been on the market for a few years."  Addressing the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) this past weekend, Minister of State for Finance, Zhivargo Laing clarified how stamp duty payable would be calculated.  He said except in cases of reasonable cause, the value stated in conveyance documents would be used as the base for the calculation.

Hurlock welcomed the clarification.  "I think that's absolutely wonderful news," she said.  "It's been causing quite a few problems here... because when all is said and done for the vast majority of our sales/transactions, the selling price is very much indicative of the real estate market, therefore correct.

"I think this is going to have a very, very positive impact on buyers and sellers, and certainly on the real estate market itself."  According to Hurlock, the exaggerated stamp duties occurred most frequently on beachfront or waterfront homes.  Some of the affected homes were upwards of 40 years old with little in the way of renovations done, some were upscale, some were not.

On the whole, Hurlocks reported that the real estate market in the Out Islands is firming.
"I think, and I'm hearing this from other people--the real estate agents in other islands--we've seen a nice improvement this year over the last two years," Hurlock said.  "We are getting enquiries, visitors to the island are looking for properties, there have been several sales and several pending (closings).  There's definitely a feeling of a little more confidence in regards to purchasing property."

Click here to read more at The Nassau Guardian