August 15, 2009 - In the past few days since we have returned we have had five people stop in the office “just to say hi” and thank us for the information on our newsletters that they have been following for some time. They appreciate the fact that (in their words) we are the only realtor in Costa Rica that “tells it like it is.”
Frankly, this makes us feel that all of our work is worthwhile. And, while other developments and real estate offices are crying the blues…we are busier than we ever have been…and we are “expanding”.
We still believe, more strongly than ever, that price point is one of the most important considerations when purchasing real estate in Costa Rica. And the feedback we are getting confirms it.
The days when nearly all visitors to Costa Rica could simply tap into their home equity to purchase real estate…are gone.
The credit markets and subsequent stock market and real estate debacles have effectively erased huge percentages of the average buyer’s equity. The funds that were available before are simply not available any longer.
And the buyers are being much more careful and are “scaling down” from their previous attitudes of buying nearly anything “because they could.” Thus price point AND due diligence AND ensuring that each purchase represents as good a purchase as can possibly be made.
0A
Are other realtors adjusting to these attitudes? Well, yes and no. Take a look at most pricing on Craigslist and other websites. Prices have not dropped dramatically there. Granted, people will always ask more than they will accept ( particularly in this market) but prices do not appear, on the surface … to have dropped significantly.
We believe that opportunities are available here …not necessarily all across the board…but sporadic “liquidations” or “distressed sales” which represent sizeable discounts to market pricing. And we are seeing them…and advertising them.
We have seen beach homes sell for less than half of what pricing was two years ago…and properties selling for even as low as 25% of what pricing most likely will be in two to three years. We also believe that the Costa Rica markets will recover much faster than others simply because it represents a different type of market.
We are revamping our scouting system in the coming months to ensure even more supply to be available to our readers and subscribers. We also anticipate that our relationship with two local banks will finally come to fruition and we will be shown foreclosures that will be headed into auction. And we are being contacted by even more sellers because they know that we have access to buyers. Our readers will see more developments from us in the near future. Sellers here too are offering product because they know we have been successful and we are passing on our pricing to the end users. Watch for them.
Construction and design services will also be offered. Too many people don’t know where to turn or what their options are when exploring alternatives …whether existing or construction. Our clients ( and everyone ) deserve to know what the alternatives are. Options are important.
Watch for all of these changes in the future.
Randy Berg
Owner CR-Home
Grecia, Costa Rica
+(506)-8841-5782
This e-mail address is being protected from spambots, you need JavaScript enabled to view it
Randy and Rhonda Berg have been living in Costa Rica for over 7 years and have a wealth of knowledge when it comes to buying a home in Costa Rica. You can contact them at: This e-mail address is being protected from spambots, you need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it