- This topic has 1 reply, 6 voices, and was last updated 17 years, 9 months ago by
.
-
Posts
-
Why would a person want to hire a Real Estate Agent if they are purchasing a condo in the pre-construction or construction phase and the developer has posted unit prices and in house sales people. Examples: Riverside, Qne Jaco Place, Avalon Santa Ana, Avalon Country Club Santa Ans, ConCasa To name a few. Can hiring a Real Estate agent help you with getting better pricing, pricing at the original advertised price after they increased or more ammenities? I know you need your local attorneys and even an accountant but what is the advamtage in paying the fee to the real estate agent in any of those properties. I understand hiring an interior designer in the US becasue not only do you get their service but they save you at least 10% on your purchase of furniture which covers their fee so you are in a break even at worst contract. With a real estate agent that collects their fee from the seller I could also understand but when you have to pay for their services out of your pocket I need to understand the benefit you get. Has anyone bought direct from the developer without their own sales agent how was your experience? Has anyone used a real estate agent to buy from a developer what was that experience?
Scott could you have one or more of the agents on this site give some feed back on this subject, if they prefer to email me direct please offer them my email address.
You don’t need an agent, you need a lawyer, 2 lawyers like I said on another post.
In the USA, you want an agent, because he/she will negoiate for you and explain all the paperwork to you. They are trained professionals in the USA so even when they aren’t the best at customer service (some are better than others in this area) all of them who work fulltime in the industry will be able to assist you quite well.
In Costa Rica anyone and everyone can be an agent – you are an agent when you say you are an agent. You can’t trust 99% of these people and for those you can trust, you don’t need them.
You need a lawyer… 2 lawyers both of which were referred by someone. Never deal with strangers, especially strangers who are lawyers.
You could build your own portfolio of stocks too but tens of millions of investors prefer to buy a mutual fund managed by other people with the goal of benefit from the experience of a proven manager…
Most Costa Rican developers have very little experience dealing with English speaking buyers although that is changing quickly.
Most developers will have in-house sales people if they don’t have outside brokers so there is invariably somebody earning a small commission although this will normally be smaller than the commission earned by outside brokers.
And as you know from personal experience vegasknite there are many developers that you should simply steer clear of and it’s difficult to know that unless you know the local real estate market like an insider which is what a good real estate professional “should” know…
Had I not told you, you would never had known that one of the partners of the “XXX” Development Company in Escazu (WHICH WE WILL NOT NAME HERE) had used the deposit money money he received from the buyers of his ‘to be built’ apartment building to build a home for himself…?
Don’t ask me why he did it, we just know he did it… But having said that, as far as I can gather here, you have significant construction experience anyway so what’s appropriate for you may not be appropriate for someone who has never built a home.
Some buyers believe it’s worth paying a small premium to get that ‘peace of mind’ knowing that they are dealing with a knowledgeable broker and they are buying a property from an experienced developer with a proven track record of building quality real estate.
Hope this helps a little…
Scott Oliver – Founder
WeLoveCostaRica.comPS. The experienced, full-time agents I recommend WILL help you with paperwork which is invariably in Spanish and there are dozens and dozens of “trained professionals” in the Costa Rica real estate industry too so they are NOT all cowboys.
I noticed you said that in another post …
Just as a matter of interest dwaynedixon, how many real estate transactions in total have you been a part of in Costa Rica?
Scott Oliver – Founder
WeLoveCostaRica.comScott:
You actually never gave me a reason other than to state you couldn’t recommend the developer I asked you about. I found your comment to be profesional and respected your choice not to explain. I said that was good enough for me and it was. Reading what I just read though I have to admit I am not surprised having met and interacted with that developer I use to count my fingers after we shook hands every time thus my reason for asking you about him/his company.
I agree and understand my education and employment background gives me a different edge but even with my construction/development history I would still hire a Real Estate Profesional without question if I weren’t 100% sure where I wanted to buy and didn’t already have knowledge that it is a top rated developer based on an excellent source (Scott Oliver of WLCR) who’s knowledge I trust 100%. But I still have no knowledge if I will save money and/or better protect myself by hiring a R/E profesional for my transaction thus my questions. Thank you for all of the knowledge I gained on this site plus all of the advice and information you shared personally with me.
Here’s what I experienced in CR.
a) Finding property is not that easy since not all are listed, but at the same time, finding the actual address can be a challenge.
b) If you don’t speak good spanish, it might be very difficult to deal with the owners/maybe developers too.
c) You can bypass agents if you have a good lawyers or friend. It can save you some money.
d) Learn the art of negotiating with the price. Asking price there is all over the map, I’m not exaggerating.Some agents, like myself, are licensed in the States and are agents here as well. We stay on top of the market, trends, etc and have first hand experience with several developers. Please note, that the developers we work with do not give a discount to those who buy property unrepresented. Typically the on site sales agent will get a higher commission as opposed to splitting it with the incoming agent. Having said that, wouldn’t you want someone looking out for your best interests and not those of the developer? Unless you know everything about buying property and the legal system in Costa Rica, I would always recommend a Realtor. I’m not saying this because I am one, but before I moved to Costa Rica and started working as a Realtor, I used another Realtor to purchase our home here in Paradise.
Good point mediatica
We do feature a few developers who charge the buyer the same price whether he is represented by a broker or not.
Scott Oliver – Founder
WeLoveCostaRica.comHi mediatica:
Yes I want someone looking out for my best interests and that is why I posted the question I want someone looking out for my best interest not their own. I would expect if I contaced a Realtor with my specific information to tell me based on what you wrote mediatica; “hey Steve I normally charge my client a direct fee, but in your specific purchase we have a relationship with the seller and they will cover our fee. We also may be able to have the selling price reduced”. Or to say “hey Steve I have a relationship with this developer and they will be paying my fee. I will represent you at no additional expense to you. I’ll make sure the sale goes smooth and everything is done properly for you”. They may also say “you have your attorney in place and they will handle the contrac+t and title search issues for you, so I don’t see any need for you to pay for my services”. Or lastly they may say. “Steve my fees to you are X% this is my normal fee and is paid to me by you however, as you know the seller has listed the unit you want for X dollars I have a relationship with the seller/developer and while they won’t discount the price on that unit to you they will reduce the price by the same X% for to to cover the expense of having me represent you”.
In 1999 I had a profesional realtor show me over a dozen homes for sale in Las Vegas, some resales some new developments. I didn’t find any of them to meet my needs. Then one Sunday afternoon while I was driving I saw a new development and drove in on my own to look at their models. I liked what I saw and told the developer’s agent I want to purchase the house I liked, I also said I was there last night late with my realtor but the office was closed so the realtor that had showed me the previous dozen homes could collect a fee. I negotiated the sales price direct with that developers agent and left a binder for my primary home. I called my realtor and explained to him what had just transpired and he thanked me. He then got involved in all the details through my closing along side my lawyer. I also purchased 4 other homes as investment properties in this same development, my realtor received his fees on those, My realtor was and is very appreciative of what I did since he wasn’t entitled to earn a fee based on me finding this development on my own but I felt he was since he spent 3 or 4 weekends previously driving me to MLS homes trying to help me find my dream house. Subsequently in a market that all I had to do is say I am selling my house out loud in my living room and would have 5 offers, I gave my realtor the listing for my 5 houses. My realtor Bill is the only person I would use to buy or sell property in Las Vegas because he is knowledgable fair and honest.
If a Realtor stated any of the above they would be my Realtor of choice through all my real estate transactions and someone I would recommend to everyone.
Another problem you’ll find vegaknite is that there are very few people here (like the people you have found on this site) who will even bother to respond to your emails.
HUNDREDS of people have told me that they wanted to do business with our recommended real estate professionals because they replied to their emails when most didn’t even respond.
And you must bear in mind that for every 100 people that contact a real estate agent online with a thousand questions of living their dream in Costa Rica, only about 8% of them will actually visit.
Because of that many real estate agents won’t spend too much time on emails etc., but will certainly focus on your needs when you are actually here in Costa Rica.
Hope this helps.
Scott Oliver – Founder
WeLoveCostaRica.comVegasknite:
I appreciate your point of view in this. When I worked in Florida as an agent, I offered rebates to my clients if I worked with them as a buyer and seller. That gave incentive to my clients and showed them that I was dedicated to them.
On a side note, doing business as a Realtor in Costa Rica is quite different. It takes typically a lot more time to find that ‘right property’, roads make it harder on me and my car on certain beach roads, sales take longer (depending on whether its pre-construction or not), etc. However, I do offer discounts in the same sort of situation (buy and sell from myself and my company). So, I guess, I could compare my services to those of an interior designer??
It sounds to me that you know a lot about Costa Rica, so perhaps you don’t need the services of a Realtor. Just my observation.
Edited on Jan 25, 2007 08:01
Good afternoon mediatica:
Thank you for your insight I appreciate you taking the time to address my concerns. Unlike many others who may be looking for a home I know exactly what I want and where I want it. I want a 2 bedroom condo in the central valley either escazu or santa ana I could go into the exact detail but I don’t feel this is the environment to do that is.
I will be in Costa Rica in the middle of February and will end up either being in contract or closing on unit.
I have an agent to work with when I am there that was recommended to me as being knowledgable fair and honest. We have communicated via email and will enter into an agreement after we meet and iron out all the details of an agreement.
I believe in dotting all the Is and crossing all the Ts up front so there aren’t any misunderstandings.
Steve,
In one of your posts, you answered your own questions. I always feel there is some sort of manipulation when people ask questions and already know the answers – just doesn’t really feel like a question.Sort list of why to use a COMPETENT in the biz 24/7 agent:
First, the seller is usually paying the commissions – so how do you the buyer pay the agent?
Second, many attorneys do not cross t’s and dot i’s.
Third, if you know what property you want and you have an attorney – what you want is a consultant to make sure it is all done correctly and to advise you about preventive proactive legal tools to keep you out of trouble after you have converted from buyer to owner.
There is a big learning curve when it comes to making the transition from visitor to buyer to owner.
Most RE agents can offer you a list of properties hopefully short-cutting you to what you want.
Some can offer competent advice about guiding you through the purchase, some will even negotiate for you.
Few offer the comprehensive advice that knowledgeable consultants provide.
And why should they? You are not paying then as you would a consultant. Correct me if I am wrong but you as the buyer are not paying at all!
I think you are trying to do what many foreign beginners do, make sense out of CR using a US mind set.
Gringos always want to come to CR and teach theses “poor uneducated people” how things are done (tongue in cheek).
We could all learn about freedom from Ticos as their lack of indoctrination from the system – allows them not to feel as if they have to participate with a system they do not agree with.
Tico mindset: Let all the politicians make as many laws as they want – we are not going to participate, file taxes, stop at stop signs in the middle of the night, etc. This is because they are free un-indoctrinated people. We should learn from them.
They have a different mind set. So when you are down here – try giving their mind set a chance instead of insisting that CR sees things through US eyes.
I know I deviated from the RE thing, but I thought it needed to be said after you used the US example to illustrate RE deals. This is not the US and you would serve yourself not to expect things to be like the US (thank God – and I say that with all respect as I am a patriot).
Also trying to get a cheap fast food education regarding buying gourmet property, well lets say you pay more in the long run.
I do not know what your time is worth but mine is expensive, so I would find a knowledgeable consultant, learn the ropes and go at it on your own the second time. That’s my bottom line advice.Thank you Diego: I undertsand you thinking I knew the answer I posted by the rest of my wording however, it wasn’t a rehtorical question. I knew things are different in Costa Rica. While I know the US system backwards and forwards I didn’t have a clue what was the correct thing to do in this case. I want to avoid making a major mistake I will deal with a minor one. Your response actually broke things down the way I needed for me to understand and make the correct decision. After reading your post I realize I was using incorrect terms and names of people. I know the developers sales person is paid by him and works for him, I didn’t understand about consultants I was told I needed to hire a real estate agent which I would pay a fee to buy property and that didn’t compute. I truly am trying to forget everything I know about almost anything when it comes to relating to business in Costa Rica. If I sounded somewhat arrogant I appologize. The other big lesson I have learned is Lawyers aren’t your friend and don’t rely on them to be looking out for anyone but their own fees. Now I know Scott has said the ones one WLCR are of a different mentality so I guess that is where I should start with skeptisizm only to be involved enough to make sure I am safe. I believe we all need to be responsible for every thing that happens to us and not foster that to another. Like if we rent a car don’t rely on the agent to be sure the tires are good and there is a spare walk around the car and check the trunk after all it’s your safety you are looking out for. Same principal applies to Lawyer consultant and so on. Even having the knowledge to read spanish or have a translator you know and trust.
While I know some of the things I will have to do upon the transformation from buyer to owner I now know I have to add it to my checklist which I didn’t before your post. As for your advise about bite the bullet on the first purchase and be savy for the second right now my goal is to buy just one that I want for the balance of my life. I know that may change in time as my life or conditions may also change causing me to sell and buy again. But the original plan is still my base plan which I will keep an open mind with because stubborn doesn’t make sense to me.
Unlike you my time is not valuable as it once was in fact as long as I am happy doing what ever it is I am doing then my time was well spent.
I truly thank you for the insights you shared they are a wealth of knowledge for me to process and utilize in protecting myself.
- You must be logged in to reply to this topic.
