The Secret to Finding Great Deals in Costa Rica Real Estate

Whether it is a primary residence, second home, or vacation rental property, a real estate purchase is for most people one of the largest purchases they will ever make in their lives.  So it is not surprising that most buyers seek to negotiate the best price possible.  And in a market that is primarily cash, buyers often feel they are in a position to command value and have leverage.  Well, how does that play out in Costa Rica, and what are the steps to finding and/or negotiating the price on a real estate purchase?  Let's go over some common mistakes I see buyers make and tips to securing you a great deal on your next purchase.  

1.  Get Educated

You can not identify value if you do not know the market.  I think that is one of the most essential steps that so many buyers miss.  Often, buyers might get swayed by an ad that perhaps shows a property at a reduced price or great value, but that is all relative to the market, and you need to be educated on a larger scope to be able to understand true values.  The second mistake is that buyers try to just educate themselves by browsing online listings.  The best learners find the best teachers and do not simply try to learn things independently.  Take your time and find the realtor, real estate consultant, or whoever you find to be a qualified expert who can assist in educating you on the Costa Rica market so you can better understand the market as a whole and what properties are worth.  

2. Establish and Align Your Goals

You might find the perfect deal, but does that make sense if it does not fit with your goals or wants?  Sometimes buyers will get caught up in the thought of the deal and lose focus on why they are even buying.  Define your wants and goals and stay focused on identifying only those properties that fit accordingly.  

3. Partner Up with a Local Realtor

What most people don't seem to understand is that when someone is motivated or dear say, desperate to sell, the first person they call is a realtor.  We have the most inside track to those best deals, and often those get swept up by us ourselves, or they get offered to our most loyal and serious clients.  Take some time to find the realtor that you feel confident and comfortable working with, so that you are at the top of their list to contact when those opportunities present themselves.  

4. Start Making Offers

The reality is that, as shrewd as many prospective buyers might be, sellers can be just as shrewd themselves.  Since this is primarily a cash market, as I mentioned, the sellers are rarely distressed or in a position where they need to negotiate.  So negotiating a great deal is the minority, but this is what I can tell you.  In 20 years of handling sales, every "great deal" that I have been a part of, never started at that price and was always negotiated.  It took someone, perhaps presenting a low offer.  The key here is not wasting a bunch of time with insulting and ridiculous offers, but it is a balance of being patient and being aggressive with making lower offers to filter through and see who might be motivated to get a deal done.  By following the first steps above, becoming educated with the market and leaning on a local realtor, you will be in a position to understand the difference between a low offer and what might be a waste of time.  Taking all these steps though is the path and secret in finding that great deal in Costa Rica.  

Written by David Karr

Originally from Washington State (Go Cougs), David Karr is the owner of the Coldwell Banker franchise in Jaco, Costa Rica. With nearly 20 years of experience, David takes a different approach to Costa Rica real estate, focusing on educating clients about the market, navigating them through pitfalls, and focusing as a buyers agent to make sure clients are presented with all options. If you are looking for an expert in Costa Rica real estate be sure to contact him today.  US Direct 509.855.7457 or in Costa Rica 506.8718.7216