December 28, 2009 – In part 3 of How to By Property in Costa Rica at Half Price, we go into detailed step-by-step instructions on how to buy property in Costa Rica at half price.
It would be simple if we could say to everyone “look, just compare OUR prices with THEIRS… and make up your mind.” Pretty cut and dried isn‟t it?
Or if we could say… ”just compare our products with the competition… and make up your mind.” But life doesn‟t always work that way.
Which is why this is being written… again…
CAN YOU REALLY BUY REAL ESTATE HERE FOR LESS THAN HALF OF WHAT YOU OFTEN SEE IT BEING OFFERED AT? Yes, without a doubt. Can I prove it?
Sure…
STEP ONE: surf the net… you will often see the same house advertised at different prices. This illustrates NET SELLING… the property owner wants a certain price and realtors (or actually anyone) can offer the price with any markup he or she chooses.
STEP TWO: the average Tico (Costa Rican) makes between $500 and 700 per month and most live in fairly decent homes. Does it make sense that the average “gringo” has to spend five times that amount? THERE IS A TWO TIER PRICING MARKET HERE IN COSTA RICA and anyone who denies that there isn‟t… has blinders on. It is a fact. Be aware of it at all times.
STEP THREE: the more you surf the net the more prices seem like they are almost on a par with prices Stateside. Why? Should it be that way? OF COURSE IT SHOULDN‟T. You will see construction prices being advertised by gringo builders or larger Tico construction firms at the $65 to 120 per sq. foot range.
Why? Think about the fact that there are no disclosure laws and people that are potential buyers are often blinded by sunsets and fast talking sales people. This is one area where homework should be mandatory. Ticos generally build in the $30-35 per sq. foot range. Gringos usually require more amenities, but THREE TIMES THE COST? Come on, use your heads.
STEP FOUR: Right now, there are advertised “firesales” and “liquidations” everywhere… almost exclusively by Gringos who are being squeezed financially. Ticos, as a general rules, are NOT affected by the economic downturn.
That being said… do you really think that the same people that are SLASHING prices in the States just to liquidate are going to be satisfied with a 10% discount here? These are usually not the sellers themselves calling the shots… remember, this market is deceiving because there are no disclosure laws and everything is “hidden”. A FAIR price is only what the seller will pay… not what a buyer advertises. Someone overhears you in the market saying that you are looking for land and (surprise!) his cousin has a piece of land for sale and you don‟t have to pay commission! Of course you do, you just don‟t know it. There is always a commission.
Even the altruistic column writer who says that the wonderful condominium project in Escazu is a phenomenal buy at $350,000… do you think he recommends it for nothing? He gets a commission too. Be suspicious… it pays off. People who live here know how the system works… listen to them. Ask questions… and then ask more questions. An aside: another very important point to remember: almost every piece of real estate here involves a commission… whether you see it or not (and you usually don’t!).
Next week we will go into the next steps involved in buying property in Costa Rica at half price.
Missed last week's article, How to Buy property in Costa Rica at half price part 2? Read it here!
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