I will often run into the expat “Pioneers” at the grocery store, a cafe, or on a stroll along the beach before I head out with clients for the day. The stories they tell of the old days, just 20-40 years ago, would remind you of a story told in history class about the “wild west.” But how does this affect the market now?
Interest rates have risen and affected the market in many countries, including Costa Rica. But for us, not how many prospective buyers may think. The market is changing and buyers are coming, but are they prepared for what they will find? If the answer is an opportunity, then yes, they will prevail.
In many North American cities, home prices have dropped and may still be dropping, but in Costa Rica we have seen sale’s prices plateau. That’s good for both the buyer and the seller. Sellers have confidence in the value of their home, and when presented well and priced properly, the home will sell without price reductions, and buyers can get into the market before the next boom and build their equity just like they have experienced in the past.
One thing we’ve seen repeatedly in real estate, history repeats itself. Even with ups and downs in the market over time, those that bought a home three to six years ago have seen their property values go up, and those buying this 2023 will also likely see their home’s value rise over the next three to six years.
Now that you are ready to purchase, here are some things you should know, as the real estate industry is changing quickly in Costa Rica.
1. You should use a Realtor® to represent you. You will find many people offering to help. This is because the profession is not a licensed one in Costa Rica. Look for an accredited Realtor® that is a member of one of the two Real Estate Associations. CRGAR, an English speaking association, and CBR, the Spanish speaking association, are the official associations. Members must be citizens or permanent residents of Costa Rica, and adhere to the code of conduct.
2. A new Multiple Listing Service (MLS) is here! It has always been a struggle to find listings that are up to date with properties that are current and available. Now with the OmniMLS site only accredited Realtors® (members of CRGAR and National Association of Realtors) can list their homes, and must update the status if available, under contract, or sold. Launching in December 2022 we will quickly see the inventory as the site gets populated with listings. Visit www.omnimls.com to search for your version of paradise and find professional representation to represent you.
3. Consider a realistic budget – It’s a cash market. Expats are not able to get bank financing in Costa Rica so set your budget and account for additional expenses like closing costs, a survey to verify the property lines, and a home inspection or soil test if you plan
to build.
4. Lastly, remember to enjoy the experience. Just another reason to use a Realtor® that will clearly lay out what you can expect from the process from start to finish, and even help answer questions after the process of a sale is complete, to ease you into your
new life.
About the Writer
Ben Rutherford is a Senior Sales Associate with Blue Zone Realty International and is an accredited Realtor® with membership in CRGAR and the National Association of Realtors (NAR), and a Certified International Property Specialist (CIPS).
