Costa Rica Real Estate

“Houses that produce rental income” has become an increasingly popular Costa Rica real estate strategy in The Zone. In this video, The Guys explain WHY this investment strategy is smart and how it can be achieved in a fertile rental market.  We moved out of the office and shot the video “on location” at such a property above Dominical, Costa Rica.

August begins a new Guys In The Zone tradition, the poll question. As some of you know, we have been increasingly active with the social marketing and networking lately. LinkedIn, in particular, has inspired many new connections and ideas. The Poll will be a regular addition to our Talk Show and articles, and who knows? It may even inspire youto submit your own poll question about Costa Rica real estate and life in the Southern Pacific Zone. If you have a LinkedIn account, thanks for voting!

This episode focuses on the most popular features people look for in Costa Rica real estate– the ocean view and proximity to a river/waterfalls. We explain how whether your desire is to buy an existing home or buy raw land & build, both of these quintessential property features add to the quality of life. If a picture is worth a thousand words, these video clips shot “on location” in two of the best developments in the area will speak volumes. Enjoy.

Episode14 by GuysInTheZone

This is our mid-year review of real estate in the Southern Pacific Zone of Costa Rica. With tourism numbers up 11% in Central America, Ben and Rod discuss how this trend points to a brighter future for The Zone.

Costa Rica Real Estate – Talk Show 13 by GuysInTheZone

“Innovation distinguishes between a leader and a follower.”  – Steve Jobs

I bet your wondering how that idea relates to real estate in Costa Rica?  Well, simply put… if there was ever a time for property owners and real estate agents in this marketplace to be “innovative,” it’s now.

We all need to think outside the box...

LISTING IS ONLY THE FIRST STEP

Here’s how listing a property usually unfolds in The Zone—

• Step One: Call up The Guys and set up an appointment to preview the property.
• Step Two: Determine if an Open Listing or a Modified Exclusive Listing is appropriate for you.
• Step Three: Wait for The Guys to bring you a buyer.

The problem is that Step Three is taking much longer than most Sellers anticipated.

LOOKING BEYOND PRICE

We all know reducing the list price is the easiest way to increase property showings, offers, and sales.  However, if your property is in the ballpark of current market value and it is being shown but not selling, there could be other reasons limiting the sale.

Here at the Guys office, we continue to ask ourselves what can we do to speed up the sales process?  At the risk of sounding trite, one answer is: “think outside the box.”  Here’s an example of how The Guys have applied this idea.

Ben started his Costa Rica blog in 2003 (before many of us knew what a blog was) Read the full story

“Four percent of the sale price on top of your commission?!” exclaimed our client, a long time resident in The Zone. (In keeping with an old Guys’ tradition, I’ll refer to him as Mr. Zellbren throughout this article.) Ben and I first explained that we are currently dealing with a severely down market (approximately 50% off the peak value of three years ago) and an excellent time to wait for the market to rebound. Mr. Zellbren wasn’t interested in waiting, so we continued to explain the standard closing costs of a Costa Rica real estate deal. Some of the data he was familiar with; some of the finer points had to be clarified.

Traditional Closing Costs

Closing costs, when you add up the transfer tax, stamps, and legal fees, usually equate to approximately 4% of the sale price. Mr. Zellbren told us he would accept a $550,000 offer for his house equaling $22,000 in closing costs. In 99% of the deals we are part of, Buyers and Sellers split closing costs 50-50. It’s what we do here in Costa Rica. Additional costs—re-surveys, title insurance, new corporations—are typically paid by the Buyer.

Interestingly, there are a variety of stamps required to transfer a property in Costa Rica. They are– the Legal Bar Association Stamp (Timbre del Colegio de Abogados), the Municipal Stamp (Timbre Municipal), the Fiscal Stamp (Especie Fiscal), the National Archives Stamp (Timbe del Archivo Nacional) and the Agriculture Stamp (Timbre Agrario). Like everything else, your lawyer will take care of the licking and sticking of these stamps, which equate to roughly .05% of the sale price.

Legal fees, also known as notary fees here in Costa Rica, are calculated at 1.5% of the sale price. This is what is paid to the lawyer/notary for setting up the Sales and Purchase Agreement, as well as, researching and filing all of the necessary documents in the sale. These standard legal fees do not include any additional legal work (e.g., a new corporations, establishing an easement, etc.). One last point regarding lawyers that I would like to add is… you often get what you pay for. Read the full story

A look at 2011 Costa Rica real estate trends as perceived and shared by Ben Vaughn and Rod Martin, the Guys In The Zone.

Guys In The Zone Talk Show – Episode 11 by GuysInTheZone

This gorgeous natural swimming hole sits below one of the nicer homes in Uvita.

It’s one of the most popular questions we, the Guys In The Zone, field— “What’s been selling? We get this question from both buyers and sellers.  Generally speaking, the answer is— great deals.

PRICE

Price is the #1 determining factor for a great deal, but there is another factor that is equally important— the living experience.  Ben, my business partner in Costa Rica real estate, phrases it this way, “do any unique features of the property significantly affect the quality of the living experience?”

There are very few remaining places on the planet where things are (1) inexpensive and (2) incredible.  During the boom years of 2004-2008, Costa Rica real estate was inexpensive and incredible.  Large farms were purchased $1.00/meter squared and nice ocean view lots were under $100,000.

Three years after the peak of 2008, property values across the border came down between 40-50%.  Many houses are now selling for replacement cost or less.  Once again, we have large farms for $1.00/m2.  The obvious reason was the global economic downturn and continual 10:1 ratio of sellers to buyers.  Basic economics tells us that price, or in this case property value, had to come down.  Our listing database is now filled with good properties in every category—houses, land, large parcels and commercial.

THE LIVING EXPERIENCE

For most people, buying real estate in Costa Rica isn’t just about getting a great deal.  You can move to Orlando, Florida if that is your only goal.  It is about the unique features that significantly enrich the living experience.  When Ben and I get a new land or house listing that has an ocean view and a trail to a nearby river… Read the full story

So, the Guys have moved, once again.  We are now located in the commercial center across from

Guys In The Zone New Real Estate Office in Uvita Costa Rica

La Corona and Banco de Costa Rica.  We’re right next to Sonia’s Uvita Information Center.  If you are checking out at La Corona, and you look to your right across the street, you’ll see this image –>

So, why’d we move?  Well I’ll tell you, and in the process you’ll not only get an idea of what rents are going for in Uvita Costa Rica, you’ll gain some insight into the basic differences between men & women, so read on!

We moved from the second floor spot we had because we found that prospective clients simply didn’t want to go upstairs.

The capper was when I noticed that my gal Natalie would come to the parking area and call me on my cell phone.  I asked her why she did this.  Why didn’t she just come on in and talk vis a vis?  She said because she had a sun dress on and so Read the full story

“Few people actually stumble into wealth.”
- Smith Barney (although I couldn’t determine if it was Mr. Smith or Mr. Barney?)

In Part One of this article, I outlined how million dollar houses fit into the Costa Rica real estate landscape, specifically in the southern Pacific zone (The Zone).  There are a few obvious reasons to buy a luxury home in Costa Rica—

*  It’s A Buyer’s Market (Prices are down approx. 50% from the peak in 2008.)
*  Desirable Area (International Living Magazine rated The Zone as, “one of the top three real estate destinations in 2010.”)
*  Stable Prices For Construction Materials And Labor

The three-year Costa Rica real estate trend has reflected a significant drop in value, including property in the luxury home category.  Although there are some very nice million dollar homes in the area, this young market enables another popular strategy— Buy-And-Build.

Buy and Build

The majority of buyers who come down to the greater Dominical area with a plan to purchase a house, often end up purchasing raw land instead.  The reason is the area has a relatively small inventory of quality homes with floor plans and finishes that appeal to most North American and European home buyers.  So, they end up buy raw land or a lot in an established development, design their home with the help of a Costa Rican architect, select a builder, and then start the building process. Read the full story