Guys In The Zone: Costa Rica Real Estate

December 21, 2008

Help for Buyers and Sellers Takes a Big Step Forward

Filed under: Ethics, How to buy, Info & How To's, MLS, News — Tags: , , , — Ben @ 4:36 pm

3d_handshake-250.gif

Imagine this: you are interested in buying a piece of property in Costa Rica’s southern zone, so you walk in to one of the real estate offices in say – Uvita. You consult for awhile with an agent there. (For the sake of this article, lets call him “Ben” :o ) and off you go looking at properties that fit your interest.  After looking at all that Ben has to show you, nothing strikes you as the right piece (hard to imagine, but it has happened a time or two).

So far not a lot of imagination has been required.  Here’s where it gets a little more difficult.

Ben says: “how ‘bout we pop on down to this other agency, some competitors of mine down by Ojochal, and see what they’ve got” or “Let’s go on up to an office of my peers in Dominical that’s been around for years. They’ve probably got a few listings that I don’t that may be a perfect fit”.

I know – hard to imagine, but stay with me here.

Last Saturday marked the 2nd meeting of… well frankly I’m not sure what.  I’m not being evasive – we actually don’t know what to call it: Costa Ballena Realty Board? Association of Real Estate Professionals?  There were a few other names tossed about: Think Tank, Master Mind Group, Coffee Talk… whatever it ends up being, it holds the key to making the real estate buying and selling experience in our zone 10 times better than what it currently is.  (I like “Unified Realty Professionals”.  This could have the distinguished acronym URP which would be said something like – well, like ‘urp’ which would bring to mind the satisfied feeling one has having just enjoyed a good meal.)

Ojochal, Uvita, Dominical, Hatillo Platanillo and San Isidro are the towns that make up “The Zone”.  There are numerous real estate agencies in these towns. Some with recognizable names from other parts of the globe such as Coldwell Banker, Century 21 etc…  Then there are the “no namers” such as yours truly with Dominical Dot Biz Select Properties, and there are many such private label real estate companies.

The objective of the meeting was to improve our ability, as a unified and cooperative group, to serve people who want to either buy, or to sell property in our zone.  This is a beautiful, and much needed thing.

The meeting was attended by the owners of Osa Tropical Estates (Ojochal), two of the Coldwell Banker partners in the Dominical office, The Land Company (Dominical) principal and myself (Uvita).  We all have knowledge of all areas of The Zone, but have greater expertise in some areas over others.

Problems Identified:
It was agreed that the non-MLS (Multiple Listing Service) business model in Costa Rica makes it difficult for sellers and buyers.  The core problem is the lack of REPRESENTATION available to our buyers and sellers.

Buyer’s Problems:
When a buyer spends a day or two with a single realtor looking at property, they are only seeing what that particular real estate agency has for listings.  To really know that they have seen everything, a buyer would have to (more…)

  • Share/Bookmark

September 14, 2004

Costa Rica MLS Explained

Filed under: MLS — Tags: , , — Ben @ 5:00 pm

Is there a Multiple Listing Service in Costa Rica?
As a person browsing the internet looking for Costa Rica real estate, one will have seen the terms “MLS” and “Multiple Listing Service” numerous times. What this term means when seen on a Costa Rica real estate site varies greatly from what it means on real estate sites from the United States. To understand the difference, lets consider what the North American viewers understand when they see “MLS” or “Multiple Listing Service”.
In the U.S., there is a central database of available properties for a given region. All listed properties have a listing agent. This listing agent will receive a percentage from the sale of the property no matter who sells it. This offers a tremendous advantage to the buyer since they are able to approach the realtor of their choice and know that they will be shown everything that is on the market in their price range and taste. It has the disadvantage that the listing agent of a given property may favor his own listings over what other listing agents have.
In Costa Rica, MLS or Multiple Listing Service means simply, “we’ve got a large data base of properties”. There is not really any such thing as an MLS in Costa Rica, but you will definitely see it on a good portion of the web sites that deal with Costa Rica real estate.
Why do so many Costa Rican realtors claim to offer a MLS when in fact there is no such thing? Because prospective buyers, who use the Internet, look for what they know. Many of the searches by people looking for Costa Rica real estate are executed by the searcher inputting the key phrase: “MLS Costa Rica” or “Costa Rica Multiple listing service” or one of any number of possibilities involving those keyword phrases into the search area of Google, Yahoo, MSN etc… So really it is in response to the demands of the marketplace.
There is an upside to this practice. It is that, for the most part, all realtors are going to knock themselves out to make sure that they are completely up to date with the properties that are currently available on the market. They are highly motivated to find the property that will satisfy what the client is looking for, since that is how they make their money. The U.S. counterparts enjoy 2 sources of income, one as listing agent, and the other as the seller. Costa Rican realtors get the whole enchilada. All 8% (The standard commission here. This varies depending on various factors.) of the commission since there is no listing agent.
The trick is to be informed. Costa Rica has no licensing of realtors, nor is there anywhere near the necessary organization among the realtors to achieve an actual Multiple Listing Service. Maybe someday, but in the meantime, when you see the terms “MLS” or “Multiple Listing Service” on a Costa Rica real estate website, know that this means that the realtor has a database of properties, possibly from all parts of the country, but not necessarily.

  • Share/Bookmark

Powered by WordPress