Sol Lifestyles

        August 20 2010        

Many properties are selling well in the Costa Rica real estate market even though we are in a slowdown.  This slowdown is worldwide and will continue for a couple of years, so those needing to sell, may panic and think they need to make drastic cuts in their asking price.  If a property has been on the market for some time and has not sold most of the time the problem is not price.  The two biggest challenges are proper marketing and presentation.

The Costa Rica real estate market is undermined by the owner’s pervasive thinking that listing with as many realtors as possible and trying to sell one’s own property is the correct approach. This is a formula for disaster that leaves some good properties on the market for literally years. Owners who want their property to sell in a reasonable time know the value in giving an exclusive listing of the property to a single agency.  Companies are not going to make a significant investment in marketing a non-exclusive listing.   Realtors save their advertising budgets for the exclusive listings where the return is guaranteed and these are the listings that sell.  Yes there are dozens of commissionaires, who work part time and from their home who will want to list your property and If and when they sell something it is usually an accident.

List your property with a company that’s website is properly optimized and will show up on the first to third page on google using the search term Costa Rica real estate.  Less than 10% of shoppers go past the third or fourth page of websites.  Be sure that your Realtor will share your listing with the other reputable companies in the area.  This takes care of having to list with several companies and gives their agents confidence that the listing agency has helped the seller properly price and prepare the listing.  No agent wants to spend time showing property that is unrealistic priced or presents poorly.  Your exclusive listing agent not only does not want to waste his time and money. He will give you a breakdown on what similar property has sold, for so you can list at a price of no more than 10% over the lowest price you would accept  Overpricing will led a potential buyer to another property and you won’t get a second chance.

 The next important item is presentation.  Buyers want to visualize a home as if it were already theirs.   This means all or the family photos that make you feel at home makes a potential buyer feel the opposite.  So remove and store all that clutters create a spacious environment even though it may require renting storage.  Get your home in pristine condition.  Buyers are choosing what the best is for their money and they don’t want to spend a lot after they move in. If you are wondering about doing something... Do it!!  Start a relationship with your Realtor and ask them to be completely honest with you. Start at the front of the house and go from front yard to the backyard

Now you are ready to have your agent take good photos and video that can be uploaded to sites like YouTube  Not only will this expose your home to more buyers it will eliminate 90% of the traffic to show your listing

If you are one of today’s sellers who have an assumable mortgage or can carry a mortgage on their property will you find more buyers faster.   With substantial down payments and the property as security you are provided with a risk free return of possibly four to five times more than bank certificates.

                                                                           Tico Realty.com

                                                                            Leo Hoeffner

                                                                            506-2258-1717

                                                                            888-573-0121

When did decide to move to Costa Rica?
I decided to come to Costa Rica about three months prior to my first visit in September of 1996. The purpose of me moving here included an interest in traveling in Central America along with learning the Spanish language. I also had the idea in the back of my head that I would open a business in CR if I came across the opportunity. I had two friends from my hometown who had visited CR and recommended it, so that was the final factor in deciding to come here.

How did you get residency status and health insurance?
I applied for residency as an investor 6 years ago and was approved. That was before the stricter immigration laws were passed in the Pacheco administration. I buy an international health insurance plan from the INS that provides good coverage here and abroad.

Do you speak the local language and do you think it’s important?
Yes I do and it is essential to speak Spanish to do business here in my opinion.

Do you miss people or particular aspects of your home country?
Well, I work with many North Americans, so I am lucky to still have exposure to people from my country. I used to miss more things about the U.S. before so many things were available here. Lately though, it has been easier to get most of the goods you can get in the States. One aspect I miss very much about the States is the almost universal appreciation for a clean environment (water, land and air).

Do you have any business or travel plans for the future?
We have been considering Panama for a couple of years now, however, we are very busy in Costa Rica, making a move abroad to be a difficult venture at this point.

Are you renting or own property here? What is the average rent?
I am renting an apartment. I pay $450 for a nice two bedroom place (I have had the same rate for 5 years). I haven’t bought because prices have increased so much, that to buy the equivalent of what I rent would cost me more than double in mortgage payments (with about a 9% APR).

What is the cost of living here?
For food, lodging and rent, I would say it is about half (or a little more) of what you would pay in the U.S. for the same quality. Many other goods (mostly imports) are much more expensive though.

What do you think about Costa Ricans and how they treat foreigners?
Costa Ricans are generally very nice and friendly people. They treat North Americans and Europeans very well. Other Central and South American nationalities are not treated as well though.

What do you think of the Expat community in Costa Rica?
Good and bad. CR tends to attract courageous, free spirited, travel hungry, consciences and educated individuals (generally of the younger crowds 20-40 years old). There is also a fairly large entrepreneurial community here as well, represented by young ambitious North Americans. However, for being a country that offers a lot a freedom and little regulation, you also get some characters you would not consider to be the most positive and productive members of society- often running from the U.S. law.

What are the positive aspects of living in Costa Rica?
The weather, the cost of living, the local people, the business opportunities, the freedom, the Latin culture, the travel destinations and the values the country is founded upon.

Negatives?
Pollution, crime, rising prices, tough immigration policy, and a rising crime problem.

What is your favorite place to visit in Costa Rica?
Corcovado national park, Arenal Volcano and surrounding areas, and out on the Nicoya Peninsula by Montezuma and Mal Pais.

Do you have any tips for our readers about living in Costa Rica?
Learn Spanish and learn the local customs. Often, Costa Rica and its citizens get a bad wrap from foreigners who do not speak the language well and who do not know the country, customs and systems well for challenges they may face when operating in CR. Costa Rica is very different from the U.S., so, it is important for foreigners to understand that things here are different and to adapt to the way things are done here. Cultural sensitivity, especially to a particular culture, takes time and an interest in learning how things get done here. And learning the language may take much longer than people expect especially to achieve a fluent level. Patience and persistence are the keys to learning the language.