www.CostaRicaTicas.com

Anybody have any good ideas as to some of the better websites to go to that provide some good comprehensive information about Americans buying property in C.R. .

Try www.ticolandrealestate.com

I suggest a google search on 'bienes raices costa rica'

I did that and got a LOT of great sites with tico prices, not rip off gringo bullshit. My rule of the thumb... if the agent speaks english without an accent, BEWARE BROTHER, BEWARE!

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"The only normal people are those you don't know very well." Joe Ancis

My take is you are a gringo in a strange land and will get ripped off regardless. You walk in the door with a big S on your forehead. Doesn't matter if it is a Tico that doesn't speak english, or a Tico that speaks english, or an expat.

Real estate agents get a % of sale price, what behooves them to get you the best or lowest price for the property. The better you do the worse they do.

That goes for here in the states too.

Searching for property in Costa Rica on-line is entertaining but basically useless. It may give you an idea about the types of property available but not the pricing. By its very nature it is targeted at Gringos who are much more likely to use the internet than are local Ticos and the list prices reflect that.

Snooky is also right about dealing with real estate agents in CR. Like everyone else they are out to make a buck and not save you money. And they know they can make a lot of bucks on Gringos.

I think the best way to shop for real estate in CR is to skip the commissioned agents. Or at least only use them to begin you initial research on the market and different areas. Once you have an idea of where you want to live and the types of property available, go out on your own and look for "se vende" signs on property in those areas. Then hire your own Tico, one who doesn't get any commission or hopefully any kickbacks and one you can trust, who can then make the initial contact to find out the real initial asking price. Once you know the "Tico" price, you can then contact the owner yourself and hopefully better negotiate a deal that winds up closer to the fair market value.

While I don't like the fact that by nature they disincentivise (if that is a real word?) the agent to help drive the price down. I also don't like making someone do work without some type of compensation. They will spend hours driving you around looking at properties. Time and gas ain't cheap.

I would probably try to work out a deal where they will get some percentage propina off the books for every dollar under the asking price or something probably the same as they would get for the asking price. They all know someone that will take less than the asking price. As long as they will make the same commission as they would for full price and off the books is more profitable for them.

Now who will they try to work hard for?

Point well taken, Snooky. I didn't mean to sound cheap or to suggest they shouldn't be compensated for their trouble. What I mainly meant was to get out and check out property owners that were not using such agents themselves and to try to deal more directly. I did suggest using a Tico mediary but a non-commissioned one. Perhaps that same arrangement can be made with a real estate agent in a manner that would not provide any disincentive to get you the best deal.

Without trying to be defensive here guys, let me say a few words of defense...and caution...regarding my profession in CR. Many of your points are well taken...and yes, gringos AND gringo brokers have driven up the price of real estate in many parts of Costa Rica. Is that the brokers fault or the buyers? Probably both. A person should like in any profession, interview a few professionals in CR before deciding who you want representing you. To go without representation in my opinion is foolhearty at least, and can be financially devastating at worst. The landscape is littered here with unclear titles, contested property lines, unfinished projects, and yes, expensive purchases that cannot be liquidated currently at the same price as purchase. Going solo in CR, especially if you are not fluent in Spanish and the culture here...will usually see you taken for a ride...and-or waste a lot of time.

IMHO, you should line up a buyers broker. While yes they work on fees or commissions, you should work with someone who clearly understands your objective, budget, wants and needs. If they start pushing investments that dont fit YOUR parameters...you know you are being taken. Personally I have lost lots of potential commissions this past year telling clients NOT to buy something that caught their eye. YOu have to do your due diligence...and usually stay away from non titled or encumbered properties. The broker should also be able to provide a good atty to handle your end of the transaction. This is not easy...as I have been through 11 TERRIBLE lawyers...and currently only know 2 in 3 years here that I would recommend to handle a transaction on YOUR behalf.

In summary let me just say...there are still some great deals in CR...especially compared to US beachfront or tropical climes...but buyer beware...and DONT go solo. YOu are inviting disaster.

Tman,

Don't be defensive. If there is any ex-pat agent I would trust in CR it is definitely you, but you know as well as I that there are plenty out there who give your profession a bad name. AND as you yourself stated this is also true in allied professions that one will have to work in completing any real estate deal, such as lawyers.

I can see how my post could be misconstrued and perhaps I did not express myself clearly enough but I never meant to suggest one should go it alone.

First of all the main point that Snooky and I were trying to make was in differentiating between agents that work in ones best interest and ones that have other goals in mind. For my part, I used commissioning as a basis to draw the distinction. I stand corrected in that commission structures might be set-up in such a manner to not create any disincentive for the agent to work for your best deal. I also failed to distinguish between seller's agents and buyer's agents. The problem is that in CR the line between the two is not always that clear. The same can be said for attorneys. In CR, there is no law requiring attorneys to recuse themselves in cases where they have a conflict of interest. With realtors, one can never know if the agent is also being paid as a listing agent. My question for you is how can one tell. Do you ever act as an agent for a seller or do you only work as a buyer's agent? If you do also work for sellers has there ever been a situation where you've represented both sides? If not is there anything to stop other agents from acting in similar cases of conflict of interest and as importantly not revealing it to the client? How can one really tell an agent is working on their behalf? You mentioned some warning signs.

Finally, let me review what I actually said. I never said to skip _ agents altogether. I said to "skip commissioned agents" and I think I've now clarified that position. I said to use them only for your initial research. I've also already clarified this. But, again, I never said to go it completely alone after that. In fact, I expressly said to hire your own Tico after that. Upon reconsideration, there is no reason this could not be the same agent you worked with initially. In fact, it probably should be, PROVIDED you can trust them and are confident they have no disincentive to act in your best interests.

Also what I did say is to go out on your own and look for "se vende" signs and I stand by that. Allow me to explain this a little further. There are 3 reasons for this. First, good deals are not just going to fall into your lap. They are not going to be served to you on a golden platter by any realtor and you're not going to be able to find them by just casually surfing the web. Its going to take some legwork on your part. Secondly, I think its a good idea to get and walk around in the neighborhood you are hoping to live. Is it liveable? Are the homes in the area well-kept? Talk to some of your would-be neighbors. What are they like and what do they have to say about the area? How close is the local pulperia etc. etc. etc. Finally, whether you use an agent or not, and I think you should, I think you are more likely to get a good deal from a property owner who is selling "Buy-Owner". He is not having to share his take with an agent and therefore is more likely to be willing to accept a lower price and his property is not being as easily exposed to other Gringo buyers who are likely to bid up the price.

Bask to what I said, once you've located some likely candidates, whether on your own or with help, I think you need some way of finding out the real price before you reveal yourself as a rich gringo with a fat wallet and to that end you most definitely will need help, which is precisely what I said. Once you know that price I said to deal with the "owner _ yourself". I never said to deal with them BY yourself. OF COURSE, at the VERY least, you will need your own attorney to make sure the title is clear and to make sure you avoid all the other potential traps that are peculiar to the CR real estate market. He can also act as your agent in negotiations or you can have an experienced agent like Tman or someone else help you out. Having someone involved who is fluent and knows the nuances of the local area is indispensable. But it is still your money and of course you will also want to be involved directly at this point. My comments were taken out of context. What I meant was that one should at first stay back in order to find out the "Tico" price, before becoming more directly involved in negotiations oneself so that you are more likely to come to terms much closer to the fair market value.

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Prolijo

Just spotted this highly useful post by Tman in another thread:

THanks for the clarifications Prolijo...I was just trying to dispell the potential thinking that gringos can come in to CR and do better on their own. That is how most guys get taken...leaving their brains at the border...doing things here they would never do in the US. And yes, it is a fine idea to walk a neighborhood or check out other se vende signs in the area your agent has suggested.

When there is a buyers broker involved here, it is usually a split commission between both brokers that the SELLER pays. The buyer usually pays the legal fees. IN our case, we are always upfront about commissions, and the checks are usually written very transparently out of escrow at closing. If there are back end deals between the seller and his agent...well, thats their business and hard to control. If we prove such actions in a shared commissioned sale...thats the last time we will work with that sellers agent.

Knowledgeable shoppers here will realize that the listing price is almost always 25-30% higher than the real price...and they are not usually incensed at an offer that much lower like people in the states would be. The problem driving up prices here is when the gringos come in comparing their purchase to FLA or California prices and paying full price thinking they got a ¨steal¨. While in time their investment is probably still a good one...they did not get best value for current market prices. Its kind of like the guys that come in paying ¨cien¨ or higher for the girls because they are comparing with Las Vegas or other US mongering prices. Remember where you are...and yes...most people here will try to take advantage of ignorance. Everyone is responsible for their own education...and choice of teachers/resources.