The Real Estate Selling Process in Costa Rica

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The Selling Process

It is generally considered that a property has many values:

1) Owners Value- The price the owner wants.

2) Comparative / Market Value- This method of appraisal assumes that properties with similar characteristics will sell at similar prices. Market data is collected on recently sold properties and from this data, value is determined.

3) Investment/ Income Value- This method determines the present value of future cash flows from the property and presumes that this value is the current price an investor would pay.

4) Replacement /Cost Value This method of appraisal determines the value of the site, adds the cost of replacing a modern equivalent of the subject building (construction) and deducts depreciation if the building is not new.

5) Actual Value- The price that a willing buyer pays to a willing seller in other words the price for which the property is sold.

Once the Real Estate Broker values the property and seller is in agreement, the Broker will suggest different methods for marketing and selling your property. For example, Classified Ads, Feature sheets for distribution, Internet exposure, etc. He/she will also recommend important points to you with regards to general condition of the property and showing instructions.

Important advice for the Owner

1.) Consult a professional Real Estate Broker you trust, normally one that comes recommended to you or one whom you have qualified. We advise you not to call too many Brokers in order not to cause confusion or lack of response from any of the Realtors. The CCCBR Brokers all co-operate with one another.

2.) Pay attention to your Broker's advice in terms of the best way of presenting your property to potential buyers such as painting, cleaning, repairing leaks etc. Consideration should be given to overall cost of these repairs.

3.) Once a listing is secured, the property should be free to show to clients. During showings owner should try to be absent or at least stay in the background and allow the Broker to conduct the showing without interruptions. Many times owners do not realize that they can actually be a hindrance rather than help with the sale because buyer needs to relax and feel at home. Remember that it is the Real Estate Broker who knows the client and his needs and can also overcome any objections as a third party.

4.) Pets can present another problem, while some people tolerate them, it is not conducive to a sale when dogs are barking or misbehaving. Bad odors from cats and dogs are a turn-off and quite often can mean the end of sale.

5) Likewise, keep everything nice and clean, avoid loud music when showing the property, soft music in background can enhance the atmosphere as well as lights, turn them on. If the property has a guard he should be instructed to open the house for the clients and shut up. Here again, there are many examples of a guard speaking out of turn or asking the wrong questions and destroying the sale.

6.) By hiring a professional Real Estate Broker you will be ensure that unknown or unqualified people do not enter your home, thereby maintaining your security. Additionally the Broker is trained to handle complex questions and requests between parties and negotiate what is reasonable, taking stress away from the buyer and seller. Bear in mind that the ultimate goal of the Broker is to create a win-win situation for all parties.

Osa Tropical Properties is an affiliated member of the Costa Rica Chamber of Real Estate Brokers (CCCBR)