The must-read guide to selling property in Nosara

So you’ve decided to sell your property in Costa Rica – what next?

Land-for-Sale

How will you trust a real estate agency to sell your Nosara property? In whom do you put your faith to provide you with the right care and to secure the highest possible sales price? Remax Nosara’s commitment to fully meeting these needs reflects why its reputation with both buyers and sellers is unparalleled. We are here to handle the stress so you don’t have to. However, even with the support of the best in the business, sellers often overlook a plain fact: whether it be land, a house, condo or commercial space, unless your property is the bargain of the century, selling it can be an involved process. This requires first rate management from experienced professionals with excellent communication skills.

Despite the Costa Rican property market exhibiting encouraging signs that the effects of the 2008 financial crisis are now in the rear view mirror, memory persists. Buyers still remain selective about where they choose to invest their life savings. Additionally, at Remax we often find that sellers have the same questions and concerns, and frequently make identical mistakes during the selling process. In order to address this we have put together the following simple guide for those about to place their property on the market. While reading this, also know that the Remax staff is always on hand to assist you directly at any point during the period in which your property is listed with us.

So you’ve decided to sell your Costa Rican property. What next?

Let’s kickoff by highlighting some of the mistakes that we see recurring most frequently, and more importantly, how to avoid them. Some may seem obvious but we feel their inclusion is beneficial to all, particularly first time sellers.

Over-pricing the property:

house-and-cash-on-scaleGranted, it may seem silly to mention, but the fact is too many properties simply aren’t priced correctly these days. Contrary to popular belief, any realtor worth his/her salt knows that their job is not to “sell” a property, and often won’t waste everyone’s time showing it if they consider it overpriced. Another myth is clients with the necessary disposable income to be able to buy a second property are inherently savvy. Often even these people are nervous about buying a home in a foreign country. A great realtor knows that their primary role is to win the respect and trust of clients and allow them to make informed decisions with confidence. Your property needs to sell itself. The first and most important step towards this is ensuring that it comes with the appropriate number attached. Methods of valuation include the following:

  1. Owner’s Value:  What the owner thinks it’s worth.
  2. Investment / Income Value: This is determined by the current value of future income from the property and incorporates it into the price an investor would be willing to pay.
  3. Comparative / Market Value: Numbers stemming from data collected on recently sold properties with similar characteristics.
  4. Actual Value: The old adage “It’s only worth what someone is willing to pay for it” applies here. The price reflects the dollar number that a willing seller receives from a willing buyer. In simple terms the price for which the property is sold.
  5. Replacement / Cost Value:  This is determined by analyzing the site as a whole. How much is the land worth and what would it cost to build a similar structure (minus depreciation).

If you want to sell your property (as opposed to merely having the property for sale) then pricing it appropriately cannot be overemphasized. Rest assured that Remax Nosara is here not only to help you with a realistic valuation but also to show you how to effectively maximize that value.

 

Ensure the paperwork is in order

paperwork

Selling a property requires a number of correct documents. If any of these documents contain errors or ambiguities then administrative problems will occur. When a prospective seller approaches Remax to list with us, we request the following:

  • The plano
  • The title deed to ensure the property is free and clear and is not subject to legal dispute.
  • The original building plans or permits (particularly for new or recent builds).
  • Municipality declarations. These must be updated every 5 years.
  • Receipts proving that land taxes have been paid.
  • Receipts proving that corporation taxes have been paid if the property is held by a corporation.

Unmarked boundaries

neighbourWhile the problem of a property without clearly marked boundaries is a relatively minor one, it is significant enough to deserve a mention here. When viewing a potential property, buyers like to see exactly what it is they may be purchasing. Costa Rican law states that a property must be marked with a fence yet this is often overlooked. As part of the due diligence process, Remax Nosara uses experienced surveyors to mark property boundaries according to GPS data. In a number of cases the GPS data highlights a discrepancy between what the owner thinks the borders are and what the law states they are. Correct title deeds and documented proof of exact border dimensions save time and money.

Basic maintenance

housetools

Paramount in the sale of any property is the buyers’ first impression of the place. The frequency with which we receive properties that are a total mess still surprises us. Inexpensive things like paint, varnish and even cleaning are all too often overlooked. The priority for most of our clients is good value, however the way a property makes them feel is also of great importance. In today’s market only a small portion of potential buyers can look past their emotions far enough to envision the future potential of a property. Instead of worrying about how long it will take to paint or wondering why the yard is still filled with junk from previously messy renters, the buyer needs to be admiring the view and picturing themselves enjoying their new life in a fresh, clean environment. The visual appeal of a well-maintained property infinitely outweighs that of one in need of repair. While we receive some properties that require extensive improvements, often we receive many that are are simply in need of some basic, inexpensive TLC. Fixing up a property before listing it is truly one of the best investments you can make and pays real dividends when it comes to selling.

Commissions

realtor-commission-tshirtWhile this may seem self-serving to include here, the fact is a number of smart sellers have begun to offer slightly higher realtor commissions than the standard 6%. At Remax Nosara we treat every client with the same high levels of care and attention. However if the possibility exists whereby we may make a little more money from a higher commission on a sale then it follows that those properties will be pushed and promoted that much harder. If your property has been on the market longer than you would like, then a wise alternative to lowering the price may be offering the realtors a higher commission. Showing us that you appreciate our time and efforts is surefire way to guarantee that we will put in the extra effort for you.

So why Remax?

The alarming number of self proclaimed “professionals” emerging to add to the already overabundant supply of Nosara realtors can be overwhelming. Never before has your choice regarding who oversees the sale of your property been more crucial. Remax Nosara understands that the sale of your land or investment property is one of the most vitally important decisions you may ever make. We pride ourselves on ensuring that the selling experience is a positive one for all. We work tirelessly to provide our clients with the necessary edge by offering a level of service that far exceeds our competitors. We consider a relationship built on trust essential to ensuring the satisfaction of all with whom we deal. We take these relationships very seriously and promise you the following:

  • To follow the instructions you have given us based on the best available information we have given you.
  • To convey any and all offers made on your property.
  • To provide honest market appraisals.
  • To keep you informed at all times.
  • To maintain full confidentiality.
  • To always act in your best interests.

 

 

 

Nosara Real Estate in 2013 – The Year Nosara Went “Mainstream”

My what a difference a week makes. This year marks an all time high for both rental prices and occupancy rates for the Nosara area. The Christmas and New Years holiday weeks were highlighted by the influx of first timers to the area, eager to explore, relax, and renew their spirits before heading back to to wherever they call home. Now that these crowds have cleared out, the real buyers are back, looking to make Nosara their new home, never having to say that difficult “goodbye” when boarding a plane on the way back to the States or elsewhere.

 

The last week we  experienced a large increase of written offers and DABO’s for listings at our office. Additionally, we are seeing a huge uptick in calls and emails regarding real estate buying trips scheduled for February and March, and have booked three Fly Try and Buy groups in the last couple of days. If you have been in the market, kicking tires but not able to find exactly what you were looking for, remember this: the times where buyers had the luxury of seeing everything and everything on the market and waiting for a great deal to come along are things of the past. The “new normal” here, is that well priced properties that are marketed properly sell. The “new normal” here is that if you find something you like, you need to make an offer. The new normal is an increase of creative financing and lease to buy purchase arrangements, that work best for both buyers and sellers.

 

One last note – the town is changing. The beach areas are far from the low density sanctuaries they have been known for in the past. As predicted by The NosaraRealEstateReport – the biggest change in the market is that we have buyers who directly and immediately are looking for properties outside of the main beach areas, in order to avoid the neighborhood noise pollution, rampant and lingering dust situation, as well as to enjoy the privacy of a home located on 2 full acres instead of a 1/16th acre lot. The vacation and retirement home buyers are smarter than ever, and looking for the same thing that people came here 10,20, and 30 years ago were looking for, but that can only now be found in the areas just outside of the beach lots. Not surprisingly, the biggest interest we have seen in the beach properties, are almost entirely investors, looking to boost ROI and take advantage of the high rental prices and occupancy rates. Whether or not you are looking for a home for yourself, or an investment to earn an income on, we are here to help you reach those goals.

 

Outside of the real estate market commentary – there are some big changes in Nosara that people who have been visiting the area or living here for a while may find surprising. In particular, is how many people there are at the beach! Gone are the days of finding yourself alone on Playa Guiones, with perhaps a cold coconut water in your hand and couple of local dogs chasing playfully around in the shallows. Now, more and more families, that bring tents for shade are spending long mornings and sleepy afternoons lounging on the beach. There are locker rentals at the main beach entrance, vendors on every street – there is even a place to rent bring orange beach umbrellas and beach lounge chairs. Change is not good – it is not bad – it just all part of an ongoing process. The spirit of the travelers that are coming to Nosara still make this such a unique and special place, and we know the effect the area may have, as we warn all of our first timers “Once you visit Nosara, its a place you will return to many other times in your life.” Just about everyone by the third or fourth trip remind me that they never thought it would be true, but how happy they are to have found this place and the joy and satisfaction it brings to their lives.

 

Not to mention, there are more and more public events and attractions to the area. The first round of the Nosara Triple Crown surfing event is taking place this morning. We snapped off a few photos to show what the town has been like lately and how it will continue to be in the coming weeks, months, and years.

 

On the horizon for the Nosara Real Estate Report – is an exclusive article fully detailing construction costs, techniques, and contractors/building companies, as well as a look at the evolution of these things, comparing the difference between the building process and prices now, when compared to 5, 10, or even 20 years ago. For now – enjoy the photos and please do not hesitate to contact us with any questions you might have if you are in the market for a vacation home or investment in real estate in Nosara, Costa Rica.

 

-JG