Color Me Constitutionalistic

Say Goodbye to Big Bell. We did - hallelujah!

04 December 2007

Interested in Costa Rica real estate?

Even on sabbatical, when our new friends here find out we are in real estate, they are eager for information. Blog readers often write, seeking guidance on buying in this market. We have traveled much of the country and wherever we go, we visit developments, look at houses, meet salespeople. Once you have real estate under your skin, it's impossible to get it out!

Arenal Costa Rica is, in many ways, Key West south...

...in a developing nation sort of way. Over the last 30 years in Key West, we've seen many friends depart to the jungles of Costa Rica, never to return. At this moment, I know six Key West families planning to retire here!

While not as wild and untamed as it used to be, Costa Rica offers as much natural beauty as you could ever desire. And enough expats living here to insure your quality of life is as lovely or as rustic as you care to have it! If Costa Rica has interest for you, I can help you here, as well.

If you've been shopping in this market, you already know there are a gazillion Costa Rica real estate websites. Prepare to be overwhelmed. We were. Unfortunately, many of these advertise old information. Many of the rest have information only on the family parcels being sold by that salesperson.

Then there are the development websites, all promising exclusivity and uncompromising beauty, with astonishing pictures to prove it. (The pictures, I've come to find, are real... you don't get more beautiful than Costa Rica!) But, after awhile, all those websites start to blur...

If you are coming to Costa Rica to check on property, to spend your vacation time and hard earned dollars on investigation, you probably don't want to waste any of it! Where do you start? Where can you find:

  • Up-to-date information
  • EVERYTHING for sale in an area
  • An experienced knowledgeable salesperson
  • A good place to start

Start Here!
As an experienced, knowledgeable Buyer Agent representing your interests from initial contact to the closing table, I
help you:

  • Choose a location that offers the weather, services and lifestyle you seek
  • Choose the most knowledgeable and experienced salesperson in that location
  • Find an attorney
  • Find websites and reading material to educate you on the way Costa Rica operates today
  • By speaking frankly about life in Costa Rica
  • With all the extras: buying a car, finding a doctor, opening a bank account, choosing a bank, insurance questions
  • Get started on your new life in Costa Rica. Our landlord was our helping hand; we don't know how we would have managed without her guidance at the beginning! Now it's our turn...
  • I can also simply preview properties for you and send photos back for a fee. Please ask about that below.

Choosing Your "Agent" and the "MLS"
Choosing the right real estate professional in Costa Rica is THE critical item. Mostly because there are NO real estate licensing laws, and there is NO comprehensive database (what we call the MLS, or Multiple Listing Service in the states).

There are no agency laws here, either. I call myself your Buyer Agent and promise to adhere to U.S. laws and regulations. Since I am still licensed there, I can still be held liable there.

But anyone who calls himself a Buyer or Seller Agent, REALTOR®, who even calls herself an Agent here, unless they are licensed in the U.S., are none of the above. S/he is simply a salesperson. Nothing wrong with that, I prefer it. Just be wary of misrepresentation. There are no licensing or agency laws in Costa Rica. No one to protect you but your smarts, your ability to judge character and your gut.

Since there is no MLS in Costa Rica, you need a salesperson who also knows where and how to find the property you seek. Not just the one(s) her family has for sale, or just in the developments in which he has an interest!

Be particularly diligent in finding a knowledgeable and experienced salesperson. A salesperson who can help you find the perfect property AND advise you on property rights, refer you to a good competent, trustworthy attorney.

Good salespeople are available – I have many friends and acquaintances who have successfully and happily purchased property here. My first priority is to help you choose the right person in your area.

Sound fun so far? Let's get started!
Using the form below, tell me about your Costa Rica real estate goals. Unless it's the middle of the night, you'll hear back from me within a few hours.

As always, your information is confidential. It's a great day in this Paradise, too. Come on down!

***
FAQs

A few people have asked, "Why don't you sell Costa Rica real estate, instead of just referring?"
The list of reasons why not is long! But here's my bottom line: my #1 complaint with the real estate business in the U.S. is that, with 7 days of schooling and two tests, I got "licensed." Then sent off to advise customers on how to complete the single biggest transaction of their lives. The truth is, you are trained on your feet, hopefully without doing any damage. I was lucky! And, over the next 13 years, very well trained by my customers and my competition.

The business end of real estate in Costa Rica, besides the fact all the paperwork is in Spanish, is completely different. Different rules, different culture. No escrow rules. No formal training, no licensing, no oversight, even by a group of your peers. Trust plays a big part of the transaction. Contract law? There is no contract law. The rules can be changed in the middle of the game and often are.

If you are buying real estate in Costa Rica, your sense of adventure, of humor and a deep well of patience needs to be in good working order. When all is said and done, you will have your very own haven in Paradise. You will have earned it!

And you will enjoy it. Life here is good. We came meaning only to stay a year and now we can't leave! Pretty good testimonial...

How can you afford to do this for free?
It's free to YOU. IF you buy property, I receive a referral fee from the salesperson to whom I refer you.

How will you earn this referral fee?
My services to you are outlined specifically above (see "My Services".) When I introduce you to your salesperson, I don't disappear. You and I will be in as much or as little contact as you desire. My services to the referring salesperson are outlined in the last question below.

Will you refer me to just any old agent who will pay a referral fee?
No. You will only be referred to a salesperson I would use! Please read the testimonials from my customers. I have earned and kept their trust. Contact them if you like. They are all still speaking to me.

What if you can't find an agent who is good AND who will pay a referral fee?
Professional agents are used to paying referral fees. Anyone who doesn't has something to hide. In the states, we paid fees to agents from other areas who sent a customer to us. From a salesperson's point of view, I am bringing a hand-picked pre-qualified buyer and I've done all the footwork. Salespeople and developers welcome my referrals!

30 November 2007

Sound Familiar?

One of today's threads on the Costa Rica Living Group board was "Lots of for sale signs." The conversation went like this:

Posted by: Marvin
Fri Nov 30, 2007 5:59 am (PST)

I was driving around the other day with a friend and noticed about 50 "for sale/for rent" signs in a period of about 30 minutes.

Some realtor friends of mine say real estate has REALLY slowed down and there is too much inventory and no buyers.

My complex in Escazú is really nice and quite inexpensive, and 3 of the 7 condos are for sale...yet nobody has even come to look at them. A couple blocks away is a brand new complex and not a single condo has sold...not 1.

Does anybody else get the distinct feeling that we are about to have a real estate crash?

--

Posted by: Gary
Fri Nov 30, 2007 7:31 am (PST)

Same feeling about Jacó Beach. My condo is also up for sale and nary a nibble. Its probably because there is SOOO much inventory, and a lot of it is not finished yet, that serious buyers aren't ready to make a decision yet. I hope there is no short term crash, but it really wouldn't surprise me. In Jacó not much thought has been put into upgrading infrastructure, and so thats a big question for folks used to regular Hydro and toilets that really flush.

--

Posted by: David
Fri Nov 30, 2007 6:12 am (PST)

you can only sell a finite number of 80,000 dollar homes for 350,000 dollars, and then the well runs dry ----- and the dollar loses value, and the stock market loses 1000 points, and the sub-prime funds go under ----- HELLO ------- welcome to the real world ----- just my personal opinion

--

Posted by: Jack
Fri Nov 30, 2007 6:54 am (PST)

David, Everything is cyclic, if you have a boom eventually the smoke blows away. With all the over building going on something has to give sooner or later. All these builders were counting on the baby boomer's buying without brains. Well it turns out that getting to retirement age you do become very cautious with your money especially with the fears of SS going broke and all that stuff. I know that I currently changed my way of thinking. I bought in Costa Rica for big reasons, 1 - that I could buy a Tico home for cash, 2 - lower cost of living, 3 - awesome people and 4 - awesome country. That said, I think your personal opinion is right on.

08 July 2007

Losing Their Shirts and Looking For Help...

The past few weeks, I have not been keeping up on Key West real estate, other than Cayo Dave's Blog and some skimming of the MLS. I've been researching Costa Rica real estate for a buyer and, WOW. Talk about deja vú.

Costa Rica is enough behind the states that this feels like instant replay. Here, everyone is an agent, everything is for sale... EVERY conversation is rah-rah real estate, like Key West 2003-2005. Makin' me dizzy...

There is SO much enthusiasm here, even in the face of a declining market. I spoke to three brokers in two days last week and every one of them said, "Last year was gangbusters, this year is flat." That's an actual quote from one. Then they said, "It's a slow spot. It'll be back." Did I fall through a wormhole?

In the meantime, back in Key West realtime, I have friends in trouble, talking to bankruptcy lawyers. They called me for advice, but I don't have much to give. Yet.

Here are the options I know so far:

FOR PEOPLE WANTING TO HANG ON:
- Bridge Loans
- Hang in there with your cash as long as you can
- Interest only loans
- At least one KW bank is reducing interest rates on adjustables when the time comes
- Delaying payments and tacking them onto the rear of the loan, like lenders did after Wilma
- Refi to a 40 year loan (not a significant difference in payment)

FOR PEOPLE WANTING OUT:
- Foreclosure
- Short Sales (if the bank will participate)
- Bankruptcy

Bankruptcy is not the deal it used to be. Since they changed the rules in 2005, your primary residence is not necessarily safe. In Florida, homesteaded property is still protected. But that's it.

Here's the significant part that no one remembers - if you walk away from a mortgaged property and the bank sells it on the courthouse steps for less than what you owe, YOU ARE ON THE HOOK FOR THE REST. YOU borrowed the money, not your house. YOU owe the money back. You've put your house up as collateral, but if the house doesn't cover the note, YOU owe the difference. This becomes "unsecured" debt and the lender can get a judgment against you, take your assets and attach your paycheck... All is not necessarily forgiven.

If it IS forgiven, the IRS sees this as money you made (the bank gave you the money and you didn't pay it back so you "made" that money)... ergo YOU OWE TAXES ON IT. You don't have that money anymore, of course, but the IRS still wants it and THEY can grab your assets, if there are any left, get a judgment against you and attach your paycheck.

The real trouble is that, once your paycheck is attached and your other assets are gone, how will you pay the mortgage on your primary residence? How will you pay for your car? Get to work? Buy food? Etc., etc., etc.

All the more reason that good solid info would be VERY helpful for those in distress. Any ideas?

13 June 2007

Real Estate Rant

This is today's post from my Costa Rica blog. But substitute the words "Key West" wherever you see the words "Costa Rica" and there's not much difference. More soon...