As all of our sellers (who were once buyers) know, value is one of the most important elements for any investor, never more so than now. In years past, headroom for appreciation was a given. Land was relatively cheap and on the rise compared to the rest of Costa Rica. In fact, many investors purchased multiple properties at that time.
We now find ourselves in a more mature market with more discerning buyers and subsequently some properties sitting unsold for an extended period of time. Due to the recent economic downturn we see an increasing desire to move something now. This is a different approach to the “let’s put it on the market and see what happens” mindset of years past. We have now hit the lull so commonly experienced in a previously booming market. Seller financing has allowed more buyers to secure a property, as well as, partially alleviating the financial pressure on many sellers. (For more information on seller financing, see Ben’s article “Do You Have To Be Rich To Own Land In Costa Rica?” ) In any case, for those sellers who seriously need to sell this high season, list price has fast become the key element in the sales process.
Ben and I always strive to create win-win deals. We love those clients who are not limited by a hard-ceiling budget; however, our impression is these liquid investors will probably not make up the majority, moving forward. Most prospective buyers who approach us (either online, as a referral, or as a walk-in) have a budget of $XYZ. We start by showing them the best value in that general price range. More often than not, we only have one or two days to spend with them. This limited time frame means a seller’s property may not make it in the first circuit, or “A” group. When the “A” group is exhausted, then we move to the “B” group, which include equally stunning properties at a slightly higher list price.
I describe our listings in this way not to get our sellers to lower their list price necessarily, but to understand that if they need to sell their property, list price is key to getting the property shown. Ventanas Oasis (listing #299) is one example of a fantastic ocean view listing priced to sell. Without a prospective client taking the drive to your property, standing on the dirt, and blending their vision with the features and possibilities, you have virtually no chance of getting an offer. So, our suggestion is to leverage the next few months with a list price that will get your property shown and sold.
Ben and I are available to answer any questions for buyers and sellers regarding comparable pricing, as well as, the best properties available in the southern Pacific zone of Costa Rica.