As owner and the Managing Partner of a boutique real estate firm in South Pacific Costa Rica, you will see that many of my future topics here relate to buying real estate in Costa Rica. (So many people asked me about real estate that I finally listened, and got back in the biz!)
Buying Real Estate in Costa Rica
Well, first of all, who doesn’t have the dream of buying real estate in Costa Rica? Doesn’t everyone? 🙂 And if not, maybe you should. But how does buying real estate in Costa Rica really work and how is it different from other countries?
Bingo! You’re in the right place….let’s get to it.
Location, Location, Location
As in almost anywhere in the world, the first thing you want to do is narrow down your choice of locations. For example, in our tiny coastal area – where we live – called Costa Ballena (pictured above & ‘ballena’ means ‘whale’ in Spanish) – there are three ‘main’ small towns: Uvita, Dominical, and Ojochal. (There are others but these are the main three.) What many people don’t fully get when they come on vacation, fall in love with the area, and then return to buy Costa Rican real estate – is that these three small towns have very unique personalities.
This is a common mistake, and can often lead to an investor buying in a place that does not fit them.
Determine where you want to live in Costa Rica BEFORE you buy
If you’re not absolutely sure where you want to LIVE (not just vacation!) in Costa Rica, then I have two suggestions: (1) come and stay for a month and do a TON of poking around to get to know the local flavors of several areas, or (2) come and go for about a year – including at least 10 days in each area you might consider living in – and rent an AirBNB or a VRBO and really get to know each place.
Shop at the supermarket. Go to a local ball game. Go to the farmer’s market. Talk to people, both Ticos (locals) and expats. Go visit the local vet (if you think you’ll be bringing or adopting pets when you move to Costa Rica). Do things you would do when you live here, versus hanging out at the beach all day working on your tan. (Because of course, we do that too, but living in Costa Rica is NOT like being on vacation in Costa Rica.)
The point is to get to know the town / area you’re considering BEFORE you put down a deposit.
When buying real estate in Costa Rica, do you need a broker or not?
The short answer to this is that as an outsider / non-local, a legitimate, legal real estate broker can help you avoid a lot of pitfalls that you might otherwise not expect when buying real estate in Costa Rica. This is especially true when you don’t speak Spanish.
I do recommend having a broker when you buy in Costa Rica, no matter where you purchase. And that’s not based on me now having my own real estate firm – that’s based on living in Central America for almost ten years now. I’ve seen too many people burned because they thought they “knew better” and struck out on their own.
Does this mean that you CAN’T find a great deal on an amazing property for sale in Costa Rica without a broker? No. But the odds of doing so and doing so successfully and with little to no risk are way lower than most other markets.
As friendly as everyone in Costa Rica may appear, there are still plenty of questionable characters out there who are happy to take your money, “sell” you something they don’t even own, and get you into a load of trouble.
So, my opinion, get a broker. Please. And, to do any type of real estate transaction in Costa Rica, you also must find a good attorney. For this,
How do you make sure the broker you have chosen is legal to sell real estate in Costa Rica and is also licensed with the Costa Rica Real Estate Broker’s Association? Great question. Read this page to find out more of the questions to ask.
Finding your dream property in Costa Rica
First, it’s important to know that Costa Rica does not yet have a “multiple listing service” for real estate. This is unfortunate. The Association of Brokers is working on implementing one and making it a legal requirement, but that’s already gone years in the making and has yet to actually happen.
As a result, properties for sale in Costa Rica are listed the old-fashioned way: online (by one brokerage or a multitude of them – often with different pricing), using For Sale signs and via word of mouth.
It seems crazy, doesn’t it? In the United States and Canada these days (and many other countries), you have Zillow, Trulia and a host of other apps and search engine tools to help you find your property or home. But not here in Costa Rica. Step back about 15-2o years and that’s about what the process of house hunting here in Costa Rica feels like.
Yes. It can be frustrating. It can be confusing. So, what’s the solution?
Consider hiring a Buyer’s Agent to represent you in buying Costa Rica real estate
Most of us from the U.S. or other more developed countries have heard of “Buyer’s Agency” services. A buyer’s agent is one that represents you – and ONLY you as the buyer – and therefore, goes out and searches high and low for your dream property, even if that means they have to find it with another broker.
Buyer’s agency services aren’t common in Costa Rica.
Let me give you a common example of why this type of service might be of interest to you.
Let’s say you hire Broker A to help you in buying real estate in Costa Rica. Broker A has 25 homes listed on his website for sale. You decide you like house #4 and you want to make an offer on that house. However, Broker A has a sales contract with the Seller of house #4. So, when you start negotiating with Broker A and he then goes to negotiate with the Seller – whose interest is he really representing: yours as the Buyer or the other guy that is the Seller?
Hmm…see how it can get convoluted and complicated?
Many people moving to Costa Rica or retiring to Costa Rica feel uncomfortable with having one broker as the middle man between Buyer and Seller. And, if that’s the case for you, then ask your broker to consider being your Buyer’s Agent. That means, it’s her job to go find your property – whether she has it listed among her 25 homes OR if she has to go find it at another brokerage.
If your broker offers this type of service, they will likely ask you to sign a Buyer’s Agency Representation agreement. (That’s what we do.) This protects them and the time they are spending in conducting the search for your piece of paradise, without worrying that you’re going to run off and find another broker (and then they would not get paid).
Make sense? It’s not a perfect world here in Costa Rica real estate terms, but for some clients, having a broker as their Buyer’s Agent makes them feel more comfortable and better represented.
Did you learn something about buying real estate in Costa Rica here?
Great. That was the point. I’m all about education, and helping people find their way – in a smart, protected fashion – in Costa Rica whether they are moving here, retiring here or just coming here to live for a while.
Find your tropical oasis in South Pacific Costa Rica
You can reach me at our offices here in South Pacific Costa Rica via our US/Canada phone line at 1-929-229-2022. Or visit us on the web at CostaRicaPacificRealEstate.com. If you’re a Facebook person, you can check out our page there as well to see what’s new and get the latest listings.
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Best of luck as you start your process of buying real estate in Costa Rica!