In the high end... price is not the main issue

Costa Rica is a bit different than many of the favorite destinations around the globe in many ways.  If someone chooses to live in Costa Rica instead of living in any other country, there must be a strong reason for that, especially in the high end, where buyers are much more demanding about their taste and needs.  In the high end we are mostly dealing with highly educated people, who have a clear understanding of the trends moving the market and, they usually do a lot of research before making any decision.

 

Prices in Costa Rica started to go down since the real estate crisis in the United States started.  Before that time, prices were up in the skies, mostly due to speculators from the USA creating a real estate bubble that had to go down at anytime.  As a result, properties sat on the market for months and months without selling.  Since then, owners have become aware of the need to lower the price on their properties, to adapt it to the present market conditions.  Many of our listings are been offered with very large discounts, but even with the lower prices, we have had cases of negotiations that have started with a lot energy, have taken everyone a lot of time, have involved attorneys, have caused multiple expenses to all sides, but the end result is that the parties would not agree on price.  

 

Even thought the USA used to the main market of buyers for real estate property in Costa Rica, this has changed dramatically.  At this point we have fewer buyers from the USA, but many more buyers from Canada, South America and Europe, willing and ready to buy property in Costa Rica and enthusiastically searching for the right kind of property. 

 

In the high end, price is not the main issue, but the fact that the property has to meet the standards that buyers are looking for.   When clients in the high end find the right kind of property, the decision is almost immediate. The market is moving faster in the high end here in Costa Rica with ready to buy clients.  A few days ago, a client called to finally schedule an appointment on a property she seriously wanted to buy and that I had been trying for her to view because another buyer was also interested in the same property.   She thought I was only trying to put pressure on her with the story of another buyer.  I told her the property got sold last week and she got very upset...

 

On the other hand, owners in Costa Rica are very clear about the market conditions in other parts of the world and for that reason our market has experienced dramatic changes.  Large discounts and sellers changing the course of action have kept the market unstable.  For example, many properties that were offered for sale last year are now offered only for rent, this is when the owners prefer not to discount the property but to wait for a better time to put the property back in the market for sale.  Others, especially Americans urged to sell, will apply large discounts in trying to sell their property in the shortest possible term and many of them are looking at investing in bargain property in the USA.

 

There are big challenges ahead of us in a time of turbulence for the real estate market worldwide.  Owners have to be aware of the fact that they might end up losing money if they want to sell their property on a cash deal.  The biggest challenge is getting both sides in agreement on the terms of the sale.  There must be balance in everything and getting the buyer and seller to agree on price is only one part of my job, but at the end, it is the only way to truly get the job done.  High end buyers are cautious about where they put their investment, but when they have made a firm decision, they will go for it.

 

Working together with buyer and seller in this process has become a titanic task, but at the end of the day, if both parties are in agreement, it is the best highest reward to all.