Buying Costa Rica Real Estate. The Importance of knowing what you want…
In the world of real estate, as in the world at large, knowing what you want is vital for a successful real estate transaction.
As a buyer in an exotic land, that importance is ten fold. Being focused and organized with clear ideas of what your “dream property” would look like should be your goal. For the real estate professional, to efficiently and effectively serve you, the valued client, the client needs to be clear, honest, and flexible.
Having an open mind also makes a big difference because things may not always be what you “dreamed” they would be. To help reach a common goal, we have created a short questionnaire to better determine the best way to find you your dream property in paradise.
At first glance, the questions seem typical and straight forward, but they can be more complex than they appear at first. By explaining each question from the professional’s point of view, the answers you provide will be key to getting exactly what you want.
Have you visited Costa Rica before? If yes, when? This most basic of questions is a very important one. By knowing whether or not you have been to the country, we will know what you may and may not be familiar with, such as basic topography, climate, culture, government, services, and amenities. Also, knowing when you last visited will give us an idea of how things may have changed since last time.
Are you working with any other real estate agents at the moment? What most buyers don’t realize is that in Costa Rica, exclusivity in real estate listings is not common. What is common are open listings, meaning most agents in a particular area work the same listings. Often, this can create tension between real estate offices and agents when clients go on “tour” with more than one agent.
Being loyal to your real estate professional will normally result in your agent being loyal to you. Of course, there are exceptions to every rule, and if your agent is not providing you with quality service, move on. This will also eliminate the overlap of viewing the same properties over again.
What do you want from us as your real estate representative? From the beginning, if you are very clear about what you expect from the professional you are working with, there will be no room for error. Be specific. Let us know how familiar you are with real estate in your desired area. What are you looking for?
You may have many ideas and be open to a wide range of things, so let us know. A good agent will listen and read between the lines, finding you exactly what you are looking for. If, after viewing several properties, you have not found what you are looking for, there are two possibilities: the real estate professional is not listening and doing their job or the buyer has not been clear from the beginning. Complete honesty is key from both sides.
Have you viewed properties in Costa Rica in the past? If you have viewed properties in Costa Rica, it will indicate to us that you have at least an idea of what the market offers. Use your past viewing experience to fine tune what you like and want to see durning your next outing. If you are “green”, then have your agent give you an overview of what is available. More times than not, this will happen a few weeks or months before your arrival via photos and links to listings that give descriptions of the available inventory.
What type of real estate are you interested in? This could be a multi-faceted answer but the most important points are:
Purchase (vacation, retirement, main residence): If you are going to be making a purchase, what will be the main use of the property? Chances are if you are going to live full time in the property your needs will be much different than if you are going to use it as a rental or investment property. Most buyers are less likely to compromise on details for their main residence.
Rental: There are two distinct types of rental properties in Costa Rica, long and short term. Rarely do they overlap, meaning most long term rentals will not rent for short periods of time and vice versa.
- Long term (12 months or longer): Generally speaking long term rentals are for periods of 12 months or longer. Long term rentals can be furnished or unfurnished, so it is important for us to know exactly what your needs are.
- Short term (1 week to 6 months): These are typically vacation rental homes, or retirement rentals for retirees who winter in the tropics. These will be fully furnished and all inclusive. Amenities will vary from property to property, so again be specific about what you really want.
Investment: Because Costa Rica is a very popular tourist destination, rental properties, especially vacation rental properties, are very popular. If you are looking for an investment property, then it would make sense to look at properties that have a rental history or currently have tenants. There is no reason to reinvent the wheel, so to speak.
Also what are your goals in terms of ROI (return on investment)? A well- versed agent can give you realistic expectations. If you are looking for a 20% ROI and the agent says, “Yes, you can find that here.”, well, I don’t want to burst your bubble, but that scenario is highly unlikely. Typically ROI’s for investment rental homes will range from 7-12% annually.
The AARP Ranks Atenas as…One of “The Best Places to Retire Abroad.”
What is your time frame for this transaction? Knowing when you expect to make a purchase will determine the availability of inventory. If you are six weeks out then properties an agent provides today will most likely be available. If you are a year out, inventory turns over, and chances are the options will be different.
What is your price range? When making a purchase, from the smallest item to a luxury property, we know our budget. Many times we don’t want to share our financial information, but by providing this key piece of information, the agent can guide you to the right properties and let you know if your expectations are realistic or not.
What area of Costa Rica are you interested in? Costa Rica is diverse, with 12 different “micro” climates, mountains, beaches, rivers, lakes, volcanos, and everything in between. We all know that in real estate location is key, so be very sure of what you want and where you want it.
Your lifestyle and level of activity will play a pivotal roll in determining what region is best for you. Working with an agent that is knowledgeable about the area you are interested in will make the difference in having a successful experience.
If you are inquiring about properties in Atenas, Grecia, or the surrounding areas, we are the “go to guys”, but if you want to purchase in Limon, for example, we cannot honestly provide you with quality information or listings for that area. Having said that, most agents have a good network of trusted agents they work with and should have no problem referring you to a qualified professional in the location you desire.
How many square meters/square feet of living space are you seeking? In real estate, size does matter and always influences price. Here in Costa Rica, square meters/footage is quoted “under roof” not in “living space”. Also, in Costa Rica homes tend to offer open floor plans with large, covered outdoor spaces, perfect for tropical living, eliminating the need for extra indoor space.
How many bedrooms/bathrooms are you seeking? A retired couple looking to live in paradise full time will have much different needs than a young couple looking to purchase a vacation home. Are you expecting guests often? Would you prefer to have a separate guest house?
How much land are you seeking? Often times clients are in search of privacy and large tracts of land for gardening or room for expansion. Many have ideas for creating retreats, a bed and breakfast, or some other type of business. Others seek a small, low maintenance property where they can just lock up and go.
Another point is that in a diverse country like Costa Rica, views come at a price. More times than not, you will have to sacrifice usable land for a great view, and vice versa.
What are your “must haves” in a property? Most of us have things that we cannot live without in our homes. For some it’s a dishwasher, indoor utility room, or double vanities in the master suite. For others it’s a pool. Many things that are common back home are common in Costa Rica too, but there are a few exceptions, such as bath tubs. It is becoming more common in new construction to install at least one bath tub in a home, but traditionally speaking, showers rule in Costa Rica. Be very detailed when giving your “must have list” to your agent.
What do you “not” want in a property? Are there any deal breakers in a property? Something that would make the difference in making a purchase or not? How important are that dishwasher, bath tub, or those double vanities? Does an unpaved road bother you? Is living in a gated community important? How far from town is too far?
Do you have any special needs or requirements? Are there any handicaps or disabilities that need to be addressed when purchasing a property? For example, for someone who uses a wheelchair, a one story home with wide doorways, flat floor surfaces, and lower countertops are often a must and can make life a lot more pleasant.
Are there any concerns you would like addressed? Do you have questions or concerns about the real estate process in general? Owner rights in Costa Rica, for example? Do you have any legal questions, such as contracts, holding title, title issues, or escrow responsibilities? Immigration concerns? All of these are VALID and important details! A knowledgable real estate agent will be able to point you in the right direction.
The AARP Ranks Atenas as…One of “The Best Places to Retire Abroad.”
Please give us as many specific details about the property you are looking for, including “wish” or “dream” items. This is very important for us as the smallest detail may make all the difference in our search. In my case, I am a very visual person and specific details and tidbits of information help me to give the best possible service.
Knowing things like: “I love to paint and have always wanted a studio” or “We traveled to Bali last year and fell in love with the architecture” or “My wife loves animals and nature and wants to take up birding” and “My husband has many tools and loves to piddle” are all little details that can help a good agent zero in on a dream property!
This preliminary guide will hopefully serve as the start of a successful, pleasant, and rewarding real estate transaction. Keep in mind that by being up front and honest as well as having clear, focused, and organized ideas, will help create a partnership with your real estate agent that will result in the success of realizing your dream in paradise. Pura Vida!
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Buying Costa Rica Real Estate. The Importance of knowing what you want…Article ID Number 3722
Andrew Makarik
to@welovecostarica.comAndrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.
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