As we approach the third year of the world economic crisis and the subsequent crisis in real estate values around the globe, it felt like a timely moment to reflect a bit and to share a message which has become a core part of our business these past 6 months.

In short.. we all need to wake up!

After the financial crash in 2008 most sellers, Realtors, hotels, and developers here still enjoyed a relatively robust early part of 2009 and as there were many travelers, investors, etc who were already booked, already committed to purchases are who had made it out in the nick of time before the market caved in on itself.

During the last quarter of 2009, all of 2010 and the first part of 2011 we have seen a LOT of sellers who continue to hope that values on coastal properties might just rebound if we can just make it through another season.

The reality, in my humble opinion, is that the recovery to a more robust market with short term appreciation is likely still several years away, barring any more negative financial obstacles and macro levels.

With that in mind, we are working hard with our sellers now to have them make some important realizations and analysis.

1. Can you afford to wait and do you have the financial strength not just to hold out for a few more months or another season, but until the market comes back on a macro level scale so that the values that so many sellers want are feasible realities?

   If so, we applaud you, congratulate you and many down right envy you! Nothing wrong with having a solid cash flow property, having the ability to withstand long term financial slowdowns or simply loving your property too much to sell at a discounted price.

   

   That said, as professional Realtors and guides to the market, we know that no amount of marketing, no amount of good will or salesmanship can likely convince savvy buyers (and trust me there are very few if any deep pocketed idiots out there today) to pay a market premium given the current economic times.

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   So to these sellers, we applaud you, but also ask that you understand that you are likely better off not listing your property at all or taking a very patient approach to results as while many a realtor would love to claim that they can create magic… few if any can.



2. For the sellers who are truly motivated to sell, there are some key points to remember in the coastal markets.

   First and foremost.. There are buyers out there! My inbox is full of clients ready, willing and able to pull the trigger when and if we can source them properties that fit their vision and which they feel can be bought at a value commensurate with the risk that disposing of their availability of liquid funds.

   In cash markets and in fearful markets, the money is there, but it just sits on the sidelines until investors feel that opportunities are dynamic enough to warrant the risk. Work with your real estate professional not just a price reduction, as it may or may not be warranted, but on pricing your property at a point where your guide and representative is confident and excited about the value and then hold them accountable.

   

   Passive real estate success is a thing of the past and we have been blessed with success this year by working with sellers who price at the values the market warrants (not give-aways, just real value propositions) and we spend the money, time and energy and produce results.

   The second thing to remember is that while some sellers are taking the funds from a sale and putting them under their pillow.., for you guys more money is more money!

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   That said, many if not most are going to be reinvesting and I watch far too many sellers hold and hold and hold for a top dollar price, without ever realizing that what you might perceive you are losing the sale, you will likely make right back up and perhaps more by becoming a buyer in a buyers market.

   

   I don’t see much value in holding out for an extra $100K or $500K on a sale, only to then turn to reinvest and pay that same $100K or $500K into the next property as if the market comes back for you, it comes back for everyone.

Lastly, or at least for today.. Now that no markets in the foreseeable future are going to come back to glory of 2004-2008. It was fun while it lasted, but it’s time to wake up, put yourself in buyers shoes and realize that there is movement out there, lots of sales taking place and the next one could be yours!

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If you have ever dreamed of living in the Manuel Antonio area and would like to know more about real estate for sale please contact our Recommended Costa Rica Realtors Daveed Hollander, John Wieland and James Drews by using the simple form below: