Update on sales price of house in the $3 million plus range
It is a fact that the market in Costa Rica for houses above $3 million is very slow. In some locations of the country we can even say that it is in-existent, because there is no demand at all for houses of that value.
The recommendation to all owners that are motivated sellers, is to apply a drastic price review in light of the present market conditions, given the fact that properties in the upper side of the market are not selling. Basically, serious buyers are paying attention to properties with discounted prices, so in order to give your property additional exposure it would call more attention if it is offered with an attractive price reduction. Obviously, for it to get enough attention it would have to be brought to another price range. The price range that gets more inquiries is between $1 and $2 million, but properties above $3 million are moving super slowly. Supply and demand have also to be taken into account, and the fact is that supply is increasing exponentially, meanwhile demand for the million dollar range is decreasing.
Since we are trying to target a very unique buyer, it is very important that we listen to what the trends of the market have to say when it comes to getting the attention of that particular kind of buyer. First of all they want privacy, this is the number one reason why they want more land and don't want to be wall to wall with neighbors. Secondly they want security, and normally start looking at houses in gated compounds. Thirdly, and not less important than the other two, they want quality. We don't have a problem with the last one, but number one and two are normally an issue and will be brought as a concern when evaluating a property in particular. Let's also keep in mind that this kind of buyer will not normally face financial problems to buy the house, he will be highly qualified and ready to pay cash if the property is what he wants. Whenever it is impossible to offer a solution for numbers one and two, then the only way to be competitive and call the attention of a prospect buyer in the $3 million range will be by offering the highest quality with a highly discounted price.
Of course, offering the property below the $3 million range would give the property much more chances of getting noticed, in that case the $5,000 difference would make a huge difference in the marketing of the property, this means, offering the property for $2,995,000 puts the property in the $2 to $3 million range and completely changes the possibilities of getting activity.
I know all of my comments are of concern to many property owners, because we are facing market conditions that are very uncertain and are affected by worldwide events, but since most sellers in this price range are not selling because of financial needs, they also have to put on the balance their own expectations for the future, their time frame according to their family's needs and most importantly, what added value would the sale of the house bring to their lives without putting the sales price as the first priority. In doing this exercise many families have found peace of mind, and a way to take emotional or sentimental aspects out of the equation, focusing more on the fact that owners can't control the conditions of the market but still have control over their own lives and the course of action they want their lives to take.
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