Many folks wonder about how real estate works in St. Croix. The great thing is that it's the good ol USA - so you get title and a recorded deed - and your investment is safe. Any licensed real estate agent here can show you any property that is listed in the MLS - and we generally know about "FSBOS" (for sale by owner) as well and can show you those that fit the bill for you. The vast majority of agents here are "sub-agents" - which means that we actually work for the seller. Not to worry, though, we still owe you loyalty, integrity, and fudiciary responsibility. I, for one, will do everything in my power to find the perfect match for you - regardless of whos listing it is or what the commission is. When you find something you like and want to make an offer, I will remind you that I work for the seller - so don't tell me how much you're willing to pay, or I will have to tell the seller's agent that info! My job is to see that you find what you're looking for, and help bring you and the seller to a place where you both are happy with the outcome!
We prepare a contract (we are VERY close to having a standard contract here in St. Croix) for your review and signature, and present that thru the listing agent to the seller. One thing that is different here is the earnest money deposit. On the mainland, typically a few thousand dollars will do. Here, the earnest money deposit is typically about 10% of the purchase price. Of course, we put contingencies in to protect that deposit in the event something goes wrong (i.e., mortgage contingency, inspection contingency, other contingencies), but that's kind of the norm here. For that reason, it's important that your agent (hopefully ME) manage the process very closely to make sure all timelines are followed.
In St. Croix, attorneys do the closing transactions, not title companies. This means that you will have attorney fees - which range from around $800 to $1500 - depending on which attorney you select and how complicated the transaction is. For example, if you are buying a property that has not sold in a while, there may be easements, waivers, or other issues that cloud the title, and work needs to be done to clear it. It's usually not a big deal - it just takes time. Both parties pay for their own attorney.
You will probably want a title search - which is $125. I typically recommend that my buyers purchase title insurance - and the cost is dependent on the purchase price. I just paid about $1500 for title insurance on a property I purchased for $348,000.
The seller here typically pays the commission (for both sides), and the transfer stamp tax (2 - 3.5%). The buyer will typically pay for a home inspection (it's optional, but a good idea), and an "as-built" survey (optional, unless you're getting a mortgage, but highly recommended in any case). Inspections range from $200 - $1000 depending on the size of the home, and surveys range from $500 - $1500 for a half to 1 acre plot - depending on the difficulty of the job and other factors. Of course, no survey needed for condos!
Finally, buyer pays for recording fees. These aren't bad - $15 for the first $3,000, then $1 for every thousand after that, plus $1 per page. So for a $200,000 purchase, your recording fees would be about $220. On the last transaction that I mentioned above (a condo) - my total "expenses" were around $3000.
Now, if you get a mortgage (and you must use a local bank, broker, or someone licensed here in the VI, which only includes a few off-island companies that I am aware of), you will most likely be required to have the property appraised (generally $300 - $1000) and of course you will have some fees associated with getting the mortgage.
Your real estate agent (hopefully, ME!) will be happy to guide you thru the process of purchasing a home, condo or land here. Contact
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