So you decided to quit being a member of the “could of, should of” club and purchase your own piece of paradise. While we have many reasons to purchase in Costa Rica, these techniques are proven worldwide with savvy buyers and real estate agents. Many reasons abound for purchasing in Costa Rica including a great democratic government and tax and insurance rates that help give you equity in your new home at a lot faster rate. Your house is the largest purchase most people will make in their lifetime. It still astounds me how many spend more time negotiating on a new car, being very prepared with lots of information than they do a new home.
When buying be prepared and make sure you have the best agent available. Good agents are not afraid to being interviewed by you the buyer.
In this industry are many good ways to negotiate your new home. Let’s go over just a few time proven technics to help you save money and get the most bang for your buck.
One way to save is research, research. Location is one of the most influential factors that determinates the price of the home. That means some homework by you and your agent in the area you are interested in. Have him compare sales prices on like properties within the last six months and even better the last 45 days within the area you are looking. You can use this information to justify a lower offer than the asking price. Sellers often set the asking price higher than it may be worth it because they naturally expect a reduced offer.
Another way that may help you save is by having the house appraised by a disinterested third party. In Costa Rica architect and engineers are certified to appraise as well as many independent companies making sure you are pre qualified for a loan in the range of the home you are looking at pulls a lot of weight with perspective sellers. They know their house is not off market when most people put a “most quality for loan amount” cause in the contracts, Steward Title mortgage division has done a great job for me and my clients on pre qualifications.
You also need to think like a seller, find out as much information as you can about them, the house and their situation. Have the seller moved out? If so, than is a good change that they may be paying more than one house payment. For this aspect time maybe more important than money to them. If the house is the one you want, don’t try to be a hardcore negotiator, make an offer the seller cannot refuse with the before information you have gathered on them, the area and the house.
Another thing you can do is get a home inspection, this will make you more comfortable with your purchase and depending on the outcome can give you additional negotiation room. Things like roof work, tile, carpet, plumbing and electrical that needs minor work, often prompts a seller to take less. Because sellers seldom want to get involved with the time associated with maintenance issues.
If you have decided this is the home for you seal the deal quickly. Lapsed time in negotiations many times will kill the deal entirely. Armed with all the information you need make an offer to close the contract in less than normal time. Instead of 60 – 90 d ays offer to do it in 2 – 4 weeks. Just this one play alone can get you the home at the price you want. Remember that a good negotiation always leaves the other party thinking they won the negotiation.
By arming yourself with full information on the home you are interested in will be your most powerful tool. Homes that have been on the market more than six months will usually be more willing to negotiate with a qualified buyer. Notice I said qualified buyer.
Buying real estate at good prices is worth your time and effort to find and buy. A good broker familiar with the area and market will help make your purchase a lot more affordable.
We have a lot of great deals here in Paradise and by following just a few base concepts will leave you feeling you have truly made the deal of your life.