If you’re trying to sell your property in Central America, you may find the listing process confusing – especially if you are used to a MLS-type system. Selling in Central America requires a different mindset and if you understand how the system works, you’ll find it easier to get results.
This post is the first in a series designed to help sellers get the best results. Here we tackle the question of listing your property with the main real estate agencies operating in your market.
Yes, we’ve used the plural. In fact, if you can, list your property with every real estate agent in town. Why? Well let’s start with a bit of background.
In the absence of an MLS, ’open listings’ are the norm in Costa Rica, Nicaragua, Panama and many other parts of Central America. You’ll find a considerable overlap between the listings held by different real estate agencies and the best way of getting exposure for your property is to make sure that as many agencies as possible know it’s for sale.
At a minimum make sure you list with the major players. They should be easy to find. Let’s say your property is in Nicaragua. Type ‘Nicaragua real estate’ into Google and make sure your property is listed with all the brokers appearing in the top 5. Good brokers will also have a prominent office location in the area where you’re selling (or close to it) and a smattering of property signs (unless of course they’re trying to ‘hide’ a particular listing from competing brokers).
Your goal is to keep your property front of mind so that it is presented to all possible prospects. Remember that in the absence of a MLS your broker is trying to ‘list’ as many properties as possible – taking a volume approach – in the hope that one or two will sell. They are unlikely to be particularly vested in your listing and any time and expense spent on marketing your property can easily go un-rewarded if a competing broker sells the property first.
So it makes sense to make the listing process as easy as possible. You don’t want your property withering away in a “to-do” pile. So expect to take on some of the leg work yourself.
Write a compelling description of your property (we’ll go into what makes a compelling listing in later posts), set out the viewing instructions, gather your paperwork and collect together some good photos. Then send the information to each agency and follow up on a regular basis. Some sellers even take the extra step to prepare a set of electronic and printed flyers for each agency. (If you do this, remember not to put your own contact details on the materials as brokers will be reluctant to pass this out.)
You may think that you can shortcut this process of multiple listings by offering one agency an exclusive living. But, unless you own the last beachfront property on a hugely popular beach, or broker collaboration is the norm in the area, singing an exclusive listing may not be in your best interest. In the absence of an MLS, there is no guarantee that the agent will share the listing with other agencies. And even if they do, all agencies with the exception of the listing agency will view the exclusive listing as one that does not pay a ‘full’ commission, as the listing agency will expect a commission share. So check how things work in your region before you decide to sign an exclusive agreement.
Part of getting the listing right is, of course, getting the price right. In later posts in this series for sellers of international real estate in Central America we’ll look at how to find the pricing sweet spot for your property, how to write a compelling description, catching buyers on the web, structuring the deal to be attractive and issues to look out for in sales contracts. Stay tuned.
If you have experience - good or bad - of selling your property in Central America, we’d love to hear from you. Contact us with your story or sound off in the comments.
From Reveal Real Estate - charting international real estate trends in Central America.
Posted in Sell your international property | No Comments »
How to find your perfect master planned community in Central America
February 10th, 2010
OK so you’ve found a beautiful condo with a great view of a surf break. Or a luxury mansion where you can impress your friends with your lavish international lifestyle.
But can you really love your home if you don’t like your community, the surroundings or your neighborhood?
We don’t think so. So we encourage you to become a real estate community profiler. Start by figuring out exactly what you’re looking for, the kind of lifestyle you enjoy, the amenities you need and zero in on the community that delivers. Do this before you start comparing individual houses, lots or condos.
To get you started on your profiling, we’ve put together a list of 8 types of master planned community you’ll find in Central America.
1. Status communities
Status communities are at the top of our Price Rank. They tend to be beachfront, exclusive, and packed with community amenities - such as a golf course, marina, hotel, private club, fitness center, sports facilities, convention center, etc. If you’re in Costa Rica or Panama you may even see a top tier brand name associated with the community. Think Four Seasons, Trump, Ritz-Carlton… Properties in status communities tend to be large custom built houses or upscale condos.
2. Golfing communities
Yes, you’ve guessed it. Golfing communities have golf courses and attract golfing enthusiasts. The graphic shows the completed golf courses in the countries we cover. Costa Rica leads the field with 9. Of course many more are under construction or planned. Most golfers like to play on different golf courses so remember to look for the geographical clusters within (say) an hour’s drive of each-other.
3. Surfing communities
Walking barefoot out of your property, surf board in hand, straight out to the break is something surfers dream about. Luckily in Central America there are many property developments where this is possible. In fact we’ve found over 60 master planned communities located within walking distance to a surf break. Here’s the list and map. We also looked at developments within an hour from a break and the list is longer.
4. Historic communities
It’s really only Nicaragua and Panama that can boast ‘historic communities’. In Nicaragua these are clustered in and around Granada; purportedly the oldest continually inhabited city in the Americas. Nicaragua also has Leon, a city that rivals Granada when it comes to the colonial feel. But you’ll find more master planned communities located around Granada. If you’re in Panama, head straight for the Casco Viejo area of Panama City for colonial buildings with serious curb appeal.
5. Retirement communities
As North American retirees take stock of economic realities, it’s clear that many are looking for a more affordable life overseas. The retiree trend has not escaped the attention of real estate developers and we’re seeing a growing number of communities, or sections within communities, designed specifically to cater for the over 55s. Look out for on-site medical facilities and organized social activities such as bridge, painting, yoga and so on.
6. Escape communities
International real estate (and vacation homes in particular) are commonly marketed as a form of escape. An escape from the stresses of the modern world and the hustle and bustle of 9-5 living. Places where you can switch off your cell phone, unwind and embrace a simpler, less hurried lifestyle. Destination resorts have popped up all of the place, sometimes in very remote areas to cater to this need. The remoteness is repackaged as a benefit that delivers ’space and privacy’.
7. Urban core communities
Moving overseas is not always about fulfilling your escapist dream (See #6). Sometimes you want to be close to amenities and be highly accessible. Panama City stands out in this regard. It’s the most cosmopolitan of all Central American cities and a world class financial center. We’re not just talking about coffee shops, restaurants and nightlife but world class shopping centers, banking, theater and fine arts. The Central Valley area of Costa Rica probably comes in a close second.
8. Eco-communities
One of the characteristics of the post crisis investor is an interest in “contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy”. Recent years have seen a huge growth in master planned communities embracing the sustainability agenda ( and no, not just in Costa Rica). It’s sometimes hard to get past the green-washing but here’s a list of projects that have made public disclosures. The green trend is here to stay, we just need better ways of distinguishing the projects that churn out empty eco-cliches from the ‘intentional communities’ that are taking real action on the ground.
Now you’re ready to start finding a master planned community that fits your lifestyle. Are there any categories we’ve missed? Let us know in the comments. And once you’ve narrowed things down don’t forget to ask these 10 questions before you buy.
From Reveal Real Estate - charting international real estate trends in Central America.
Tags: Belize, Costa Rica, Granada, Nicaragua, Panama, Panama City Real Estate
Posted in Ranking master planned communities | 5 Comments »
[Video] Introducing the “Choose Belize” property developers
February 5th, 2010
You don’t need to be a genius to master real estate investing in Belize, you just need to know where to look.
Over the past few months a select group of developers have come together to showcase a broad palette of real estate options under a unified banner - “Choose Belize”. The group has been convened by Coldwell Banker Belize and represent the top properties and investment opportunities across the country as a whole at a time when it’s more important than ever to focus on value.
Coldwell Banker Belize has done the homework on the ground, leveraged their first hand experience and networks, triangulated their offerings against “four pillars of international real estate success” and enlisted the help of our database to track down the really great deals in this buyer’s market. Then, they designed a three day property tour to showcase what they had found.
They’ve just put out a video describing why the tour is a smart way to research the property market. I counted 5 reasons as I watched the video. Have a look:
Look out for the Recommended Real Estate Tour Member badge
We’ve added a “badge” to the listing page of developments in our database being showcased on the Choose Belize Tour. Here is a selection of what you’ll see on tour:
- Brahma Blue
- Caye Winds
- Cocoplum
- Grand Baymen
- Orchid Bay
- Los Porticos
- The Villas at Cocoplum
- and more…
No question, a real estate tour, where you get to see a choice of property options, selected by in-country experts, is a prudent way to make the decision if Belize is right for you.
From Reveal Real Estate - charting international real estate trends in Central America.
Tags: Ambergris Caye, Belize, Corozal, Placencia real estate
Posted in Comparison shopping, Property news | No Comments »
After the storm: Pessimists vs. Optimists
February 1st, 2010
The global financial crisis and its impact on international real estate is still discussion topic #1 among investment analysts, real estate agents and developers in Central America. Everyone agrees that 2009 was a difficult year. The tricky part is that the arguments being presented paint quite different scenarios for the future.
On the one hand, large-scale real estate projects, especially if heavily leveraged, have proven vulnerable. The suspension of the St. Regis project in Costa Rica in the wake of the Lehman Brothers collapse was the first high profile example. Other project closures and suspensions followed in 2009 including the Rosewood at Costa Carmel (Costa Rica), La Punta Papagayo (Costa Rica), Marea Alta (Nicaragua), and Orchid Residences (Panama City), to name a few.
But perhaps more important than the direct impact of the international financial crisis, the property pessimists argue, was the indirect effect of tighter lines of credit in North America - the main source of buyers for international real estate in the region. No longer is the market being carried by North American buyers flush with equity and easy credit. It’s easy to point to low sales volumes and falling prices to make this point.
Any bright spots? Counter trends?
One can overdo the gloom. The optimists point to sticker prices on the downside in Central America relative to more mature markets. The relatively low levels of lender mediated activity across the region meant that the market did not suffer the kind of foreclosure crisis we’ve become used to reading about in the US.
Second, international real estate markets, and Central America included, are increasingly being seen as tax-friendly, safe haven investments. The kind of places investors and retirees seek to shield themselves from the US financial system.
Added to this, is a new wave of lifestyle buyers looking for areas where the real estate is cheaper and, crucially, the cost of living more affordable. We included examples of developers, such as Montecristo Beach & Golf Resort in Nicaragua, Grand Baymen in Belize and Valle Escondido in Panama, successfully marketing to these buyers in a recent article for the International Property Journal.
The upshot?
The impact of the financial crisis has been mixed both within and between countries. Developers are having to adapt quickly to a new market. Those that understand the mindset of the post-crisis real estate investor are best placed to succeed.
Investment activity is trending towards well-planned developments with good locations, quality products and a master plan that delivers against end-user requirements. Pre-construction offerings in weak locations face an uphill battle.
The property pessimists are right that the boom years are over for international real estate in Central America. It’s a different market now, with buyers firmly in the driving seat. Welcome to the ‘new normal’.
From Reveal Real Estate - charting international real estate trends in Central America.
Tags: Add new tag, Costa Rica, Nicaragua, Panama
Posted in International real estate outlook | 1 Comment »
The emergence of the post-crisis international real estate investor
January 12th, 2010
Well, 2009 has been an interesting year. The big headline was, of course, the global financial crisis and its aftershocks. Now, as we enter 2010, a sense of stability and predictability (a ‘new normal’?) is returning to the international real estate sector.
One of the most telling aspects of the new normal is the retreat of the speculator buying for quick re-sale profit. The speculator has been replaced by a new type of international real estate investor - a ‘post crisis’ investor - with a different mindset and goals.
14 characteristics of the post crisis international real estate investor:
- More informed and will demand better service from the industry
- Will not make decisions based on thin slices of information but will demand openness and transparency
- Skeptical of promises made by developers on their websites and brochures
- Wary of pre-construction properties, preferring to purchase completed real estate with amenities they can enjoy right now.
- Will want to understanding the financial health of the community before they invest
- Will expect substantial discounts on the market highs of 2007
- Will haggle, even when it comes to high-end properties
- Will be drawn to real estate that is a bit low key
- Interested in properties that generate revenue in the short term.
- Motivated by lifestyle factors (not just financial gain)
- Focused on regions with a low cost of living, good health care and safe streets
- Will avoid areas with over-supply risk and copy-cat developments
- Will seek safe haven investments and tax friendly environments
- Interested in contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy
With change comes opportunity
In order to succeed in 2010, developers will need to innovate their products and their marketing to embrace the mindset of the post crisis real estate investor. Those that do will earn their way out of trouble. Those that don’t will suffer.
Tourism and retirement as a business model for international real estate in Central America is not broken, it has just shifted. Yes the over-leveraging of the North American and European consumer has come to a halt and the debt in finances will have lingering consequences. But as retirees and investors take stock of their situations and consider their options, many will still be looking for a more affordable life overseas and safe, tax-friendly places to plant their money.
We’re looking forward to a healthier, more sustainable market for international real estate in Central America. One that is more open and transparent and less reliant on the rampant speculation of the past …
…but it may take all of 2010 to get there.
From Reveal Real Estate - charting international real estate trends in Central America.
2009 has been a tough year for real estate sellers in Central America. Sales volumes are down, buyers are more risk adverse and financing is tight. The one bright spot is a growing group of ‘lifestyle buyers’ looking for cheap properties and a low cost of living. Many see Central America as an affordable safe haven and a way to side-step the worst effects of an economic downturn at home.
As it’s cheap real estate these lifestyle buyers are after, we thought we’d offer up a resource that highlights the lowest priced real estate in the four countries we follow: Belize, Costa Rica, Panama and Nicaragua.
Not surprisingly, the most affordable way into the market is by purchasing a lot or homesite. Our analysis looks at master planned communities targeting the international buyer. This means that a lot purchase comes with access to community amenities. Swimming pools, clubhouses and fitness centers are the most common. In some of the larger, resort-style communities, you’ll find golf courses, restaurants, shopping centers, racket courts, hotels and marinas.
So what’s the starting price point for lots in master planned communities?
We’ve built a ranking table to answer this question, giving the results in overall price and price/sqft for 2009. The table complements the earlier PriceRank we prepared for single family houses and condos. The columns are sortable letting you organize the list in different ways. If you want to know what amenities are offered by each real estate development, click through to the individual page for the answer. You’ll also see if the amenities are planned or completed.
A quick glance at the table shows two broad themes:
- Real estate developments located in Nicaragua tend to rank lower (ie are lower in price) than those in Costa Rica, with Belize and Panama falling somewhere in between. This pattern mirrors the level of maturity of the real estate markets - from emerging (Nicaragua) to middle markets (Panama and Belize) to the most mature (Costa Rica). We’ve analysed this before by plotting ‘development curves’ to show the relative levels of each of the markets.
- Generally speaking ocean property has a premium over other locations. Master planned communities on the ocean rank higher for the most part than lake/river and pastoral locations.
| Rank | Real estate development | Country | Location | Location type | Median price ($) | Median price/sqft |
|---|---|---|---|---|---|---|
| 1 | Camino Del Rio | Belize | Belmopan | Lake/river | 20,000 | 2 |
| 2 | Lomas de Santa Rosa | Costa Rica | Tamarindo | Pastoral | 21,200 | 6 |
| 3 | Club Alegria | Nicaragua | Granada | Pastoral | 21,500 | 2 |
| 4 | Better in Belize | Belize | Belmopan | Lake/river | 23,000 | 1 |
| 5 | Prana del Sol | Nicaragua | Tola | Ocean | 25,000 | 3 |
| 6 | Rancho Las Lomas | Costa Rica | Parrita | Ocean | 26,500 | 4 |
| 7 | Villa Davina | Panama | David | Lake/river | 28,400 | 3 |
| 8 | Casa Llanta, Nicaragua | Nicaragua | South of San Juan del Sur | Ocean | 30,000 | 1 |
| 9 | Congo Hills | Nicaragua | San Juan del Sur | Ocean | 30,000 | 3 |
| 10 | Rancho Los Suenos | Panama | Espave | Pastoral | 31,000 | 2 |
| 11 | Waterside | Belize | Flowers Bank | Lake/river | 31,730 | 1 |
| 12 | Progresso Heights | Belize | Corozal | Lake/river | 34,816 | 3 |
| 13 | Rancho del Oro | Nicaragua | San Juan del Sur | Ocean | 35,000 | 2 |
| 14 | El Camino del Sol | Nicaragua | San Juan del Sur | Ocean | 38,175 | 5 |
| 15 | Apanas Lake Estates | Nicaragua | Matagalpa and Jinotega | Lake/river | 39,900 | 2 |
| 16 | Rancho Papayal | Nicaragua | San Juan del Sur | Ocean | 40,000 | 2 |
| 17 | La Vista Nicaragua | Nicaragua | Tola | Ocean | 40,000 | 2 |
| 18 | Consejo Shores Belize | Belize | Corozal | Ocean | 42,500 | 2 |
| 19 | Seahorse Tropics | Nicaragua | San Juan del Sur | Ocean | 44,200 | 4 |
| 20 | Villa Lagos | Nicaragua | Granada | Lake/river | 45,240 | 5 |
| 21 | Parque Maritimo el Coco | Nicaragua | South of San Juan del Sur | Ocean | 48,600 | 7 |
| 22 | Las Fincas de Escamequita and Las Haciendas | Nicaragua | South of San Juan del Sur | Ocean | 49,000 | 1 |
| 23 | Belize Reserve | Belize | Cayo | Pastoral | 49,950 | 2 |
| 24 | Paraiso de Amelia | Nicaragua | San Juan del Sur | Ocean | 50,000 | 4 |
| 25 | Tamarindo Beach and Ocean Estates | Nicaragua | Central Pacific Nicaragua | Ocean | 50,000 | 5 |
| 26 | Bella Mar Nica | Nicaragua | Tola | Ocean | 52,561 | 5 |
| 27 | Cerros Sands | Belize | Corozal | Ocean | 53,500 | 5 |
| 28 | Dreamscapes Belize | Belize | Dangriga | Ocean | 54,111 | 5 |
| 29 | Finca Java | Nicaragua | Matagalpa and Jinotega | Lake/river | 55,000 | 0 |
| 30 | Selva del Mar | Nicaragua | Tola | Ocean | 55,000 | 5 |
| 31 | Bella Vista Guasacate, Nicaragua | Nicaragua | Tola | Ocean | 59,000 | 12 |
| 32 | Altos de Maria | Panama | Chame | Highlands | 59,100 | 3 |
| 33 | Club Vistalagos | Nicaragua | Laguna de Apoyo | Lake/river | 64,000 | 4 |
| 34 | Cantamar Playa Yankee | Nicaragua | South of San Juan del Sur | Ocean | 65,000 | 4 |
| 35 | Montanas de Caldera | Panama | Boquete | Highlands | 67,500 | 4 |
| 36 | Finca del Mar | Nicaragua | Central Pacific Nicaragua | Ocean | 70,500 | 4 |
| 37 | Hills of Santa Marta | Nicaragua | Tola | Ocean | 72,000 | 6 |
| 38 | Turtle Cove Lake and Yacht Club | Costa Rica | Arenal | Lake/river | 72,720 | 4 |
| 39 | El Encanto del Sur | Nicaragua | San Juan del Sur | Ocean | 73,500 | 4 |
| 40 | Costa Dulce, Nicaragua | Nicaragua | South of San Juan del Sur | Ocean | 82,000 | 6 |
| 41 | Starfish Reef | Panama | Bocas del Toro | Ocean | 84,000 | 3 |
| 42 | Hacienda Los Molinos | Panama | Boquete | Highlands | 84,660 | 6 |
| 43 | Pacific Marlin, Nicaragua | Nicaragua | San Juan del Sur | Ocean | 85,000 | 7 |
| 44 | El Club del Mar | Nicaragua | South of San Juan del Sur | Ocean | 89,000 | 7 |
| 45 | Papagayo Golf Lots | Costa Rica | Playas del Coco | Ocean | 90,000 | 1 |
| 46 | Remanso Beach Resort, Nicaragua | Nicaragua | South of San Juan del Sur | Ocean | 92,792 | 12 |
| 47 | olcan Springs Ranch Estates | Panama | Volcan | Highlands | 97,250 | 4 |
| 48 | Bahia Lomas Estates and Marina | Panama | Bocas del Toro | Ocean | 98,499 | 4 |
| 49 | Balcones de Majagual | Nicaragua | Marsella / Maderas | Ocean | 99,000 | 6 |
| 50 | Mansions at Banyan Bay | Belize | Ambergris Caye | Ocean | 101,000 | 15 |
| 51 | Paradise Dreams | Panama | Bocas del Toro | Ocean | 103,333 | 10 |
| 52 | Boquete Country Club | Panama | Boquete | Highlands | 107,189 | 5 |
| 53 | Valle Verde | Costa Rica | Central Valley | Highlands | 107,685 | 1 |
| 54 | Boquete Plantation | Panama | Boquete | Highlands | 110,000 | 7 |
| 55 | Rio Oria Estates | Panama | Azueros Peninsula | Ocean | 112,000 | 1 |
| 56 | Cala Azul | Nicaragua | San Juan del Sur | Ocean | 117,000 | 11 |
| 57 | Orchid Bay | Belize | Corozal | Ocean | 119,000 | 9 |
| 58 | Finca las Brisas, Costa Rica | Costa Rica | Nicoya | Ocean | 120,750 | 2 |
| 59 | Montanas y Mar | Costa Rica | Quepos/Manuel Antonio | Ocean | 122,500 | 1 |
| 60 | Cheetah Chombo | Costa Rica | Cahuita | Ocean | 125,500 | 1 |
| 61 | Cerro Grande Estates, Costa Rica | Costa Rica | Tamarindo | Ocean | 126,250 | 1 |
| 62 | Placencia Yacht Club | Belize | Placencia | Ocean | 130,000 | 18 |
| 63 | Gran Pacifica | Nicaragua | Central Pacific Nicaragua | Ocean | 132,665 | 21 |
| 64 | Montecristo Beach and Golf Resort | Nicaragua | Central Pacific Nicaragua | Ocean | 133,833 | 10 |
| 65 | Rancho Santana | Nicaragua | Tola | Ocean | 136,750 | 5 |
| 66 | Residencial La Esmeralda, Costa Rica | Costa Rica | Tamarindo | Ocean | 137,500 | 4 |
| 67 | Hacienda Iguana | Nicaragua | Tola | Ocean | 140,417 | 7 |
| 68 | Tierra Pacifica | Costa Rica | Playa Junquillal | Ocean | 145,000 | 2 |
| 69 | Sanctuary Bay Estates Belize | Belize | Stann Creek | Ocean | 146,500 | 3 |
| 70 | Bosques de Vista Marina, Costa Rica | Costa Rica | Playas del Coco | Ocean | 150,000 | 6 |
| 71 | Playa Santa Rosa | Nicaragua | Central Pacific Nicaragua | Ocean | 155,563 | 13 |
| 72 | Costa Paraiso | Nicaragua | South of San Juan del Sur | Ocean | 159,000 | 7 |
| 73 | Rancho Villa Real, Costa Rica | Costa Rica | Tamarindo | Ocean | 171,000 | 3 |
| 74 | Portasol | Costa Rica | Dominical | Ocean | 180,500 | 2 |
| 75 | Sittee Point | Belize | Hopkins | Ocean | 193,500 | 13 |
| 76 | Lobster Cove | Panama | Chuchecal Bay | Ocean | 208,750 | 8 |
| 77 | Pura Jungla, Costa Rica | Costa Rica | Paraiso | Ocean | 209,275 | 2 |
| 78 | Lomas del Mar, Costa Rica | Costa Rica | Playas del Coco | Ocean | 212,500 | 3 |
| 79 | Brisas del Pacifico, Nicaragua | Nicaragua | San Juan del Sur | Ocean | 217,174 | 9 |
| 80 | Eagles View, Costa Rica | Costa Rica | Nosara | Ocean | 224,900 | 5 |
| 81 | Valle Escondido | Panama | Boquete | Highlands | 227,140 | 7 |
| 82 | La Reserva Camaronal, Costa Rica | Costa Rica | Samara | Ocean | 233,475 | 18 |
| 83 | San Buena Golf | Costa Rica | Southern Pacific | Ocean | 234,400 | 11 |
| 84 | Ladera del Mar | Costa Rica | Playas de Coco | Ocean | 237,000 | 4 |
| 85 | Villas Cabo Vela | Costa Rica | Playa Grande | Ocean | 247,000 | 3 |
| 86 | Sunset Point Bocas | Panama | Bocas del Toro | Ocean | 255,000 | 10 |
| 87 | Manuel Antonio Estates | Costa Rica | Quepos/Manuel Antonio | Ocean | 284,000 | 5 |
| 88 | Cabo Caletas Costa Rica | Costa Rica | Esterillos | Ocean | 285,000 | 18 |
| 89 | Cocoplum Belize | Belize | Placencia | Ocean | 305,250 | 11 |
| 90 | Sonidos del Mar, Costa Rica | Costa Rica | Nosara | Ocean | 306,667 | 28 |
| 91 | Coco Bay Estates | Costa Rica | Playas del Coco | Ocean | 311,250 | 12 |
| 92 | Balcones del Lago Arenal | Costa Rica | Arenal | Lake/river | 315,000 | 4 |
| 93 | Rancho Playa Negras | Costa Rica | Playa Negra | Ocean | 337,112 | 22 |
| 94 | Lora Hills Costa Rica | Costa Rica | Playa Ostional | Ocean | 498,877 | 11 |
| 95 | Hermosa Heights | Costa Rica | Playa Hermosa | Ocean | 565,000 | 48 |
| 96 | The Four Seasons Papagayo Peninsula | Costa Rica | Papagayo | Ocean | 950,000 | 31 |
| 97 | Hacienda Pinilla | Costa Rica | Tamarindo | Ocean | 970,983 | 45 |
| 98 | Isla Viveros Panama | Panama | Isla Viveros (Pearl Island) | Ocean | 993,866 | 18 |
We’re continuing to sort through the data we collect, looking for the best ways to present and dig out the facts. We’d love to have your ideas and suggestions. They’ll be more price rankings to follow. We also plan a “Master Plan Completion Index” to give a sense of how far along real estate developments are with their master plan - a piece of information that savvy real estate investors should follow with care.
Stay tuned by subscribing to updates.
From Reveal Real Estate - charting international real estate trends in Central America.
Why is it hard to get reliable market comps (and what to do about it)
December 5th, 2009
This post is the fourth in a series that explains how the real estate market works in Central America. Here we look at why it’s hard to get reliable market comps (and what to do about it).
Market comparables (or ‘comps’) are the starting point for a buyer looking to cut a deal in any market. By looking at the price of similar properties, in similar condition, in similar locations a buyer can determine what’s good value and what’s not.
Trouble is, unlike in the US, real estate agents in Central America can’t draw on an industry database - such as the Multiple Listing Service - to bring out comps.
The other obstacle to good comps is how property gets recorded at the Public Registry. In the markets we cover it’s common for the recorded sales price to bear little resemblance to the actual sales price paid to the seller.
There are reasons for this and old precedents, but the upshot for buyers, sellers and agents is that it’s practically impossible to get any base data on sales.
Will “revealing” this feature of the market change the course of the real estate industry in Central America? No, probably not. But it’s important for buyers to understand how things work and to know that they have to rely on old-fashioned legwork and good contacts to get the information they need.
Ferreting out the real estate comps in Central America
We plan to write more on the subject of getting hold of comps in the region. (After all, it’s one of the reasons we set up this site and database of master planned communities.) But here are some steps to start with:
- Begin your research on the Internet. You won’t be able to find out how long properties have been on the market, or actual sales prices, but you will find asking prices. These don’t provide a perfect valuation - they often differ from actual sales prices - but in a world of imperfect data, asking prices are a good place to start.
- Speak with local real estate agents and market experts. The ones with a close ear to the ground will be able to outline actual sales price points for different property categories (e.g beachfront lots in San Juan del Sur or Ocean view condos in Panama City).
- Seek out the best-researched international real estate blogs and news websites for insight into how the market is doing.
- Head on over to Global Property Guide for some great data on global markets.
- Use this site if you’re interested in purchasing in a master planned community. We deliver the asking price comps. Our pages show the price for different property types compared against the country and regional averages for our sample (see example). We’ve also simplified the data into a 2009 PriceRank for international real estate developments in Central America.
The point is to let the data drive your investment strategy. Only then will you be able to ferret out the best value real estate in the region.
What to know more about how real estate works in Central America?
Here are the other posts in the series:
- What you need to know about how real estate works in Central America (and why you should know)
- Why are you left with that niggling feeling: “Have I seen all there is to see”?
- Are brokers really playing hard-to-get with their listings?
From Reveal Real Estate - charting international real estate trends in Central America.
Posted in Buyers tips | 3 Comments »
Are brokers in Central America playing hard-to-get with their listings?
November 25th, 2009
This post is the third in a series that explains how the real estate market works in Central America. Here we look at why buyers in Central America may feel that brokers are playing hard to get with their listings.
Imagine this …
You’re searching online for an ocean view condo in Panama and you come across a listing that takes your fancy. It looks like there’s a nice open floor plan and exactly the kind of kitchen you’re looking for. And maybe that’s a surf break you can see out of the bedroom window. Looking good… So you scan the listing to find out where the property is located.
Now here’s where the information gets scant. In fact, you can’t find any location information whatsoever. “Why?” you wonder in frustration, “Is the broker not giving me this crucial detail?”
Is this a real listing?
Most likely you’re looking at an ‘open listing’ or a ‘pocket listing’. As it is ‘open’ any agency can list the property. But only the agency that introduces the buyer earns the commission.
You can see why it makes sense in this scenario for the real estate broker to keep the listing information vague – they want to reduce the chance of competing brokers finding the owner and taking the listing for themselves. For some properties, brokers and agents may take this one step further and not have any information on the listing on their website.
Open listings and inventory hoarding by brokers is common in the region. It’s a factor of not having an MLS system.
What about exclusive listings?
There are exclusive listings in some markets, (they seem to be more common in Belize for example), But again, in the absence of an MLS, exclusives don’t always work very well.
This is because everyone, with the exception of the listing agency, will view the exclusive listing as one that does not pay a full commission, as the listing agency will expect a commission share.
If you’re a broker, why show an exclusive property for a shared commission when you’ve got open listings on your books that pay a full commission? (In US industry terms a full commission comprises both the “listing” side and the “selling” side of the commission, known as “both sides of the transaction”).
Towards better location information
Things are slowly getting better as the online marketplace evolves. On this site for example we plot each master planned community on a Google Map. We also provide an estimate of driving time to the nearest international airport and the nearest town with a decent sized grocery store. (Here’s an example). It’s our Central American version of the DriveScore.
Of course we’re still a long way away from arming consumers with the kind of data they have in the US. But the data supply is increasing and transparency is starting to improve.
What to know more about how real estate works in Central America?
Here are other posts in the series:
- What you need to know about how real estate works in Central America (and why you should know)
- Why are you left with that niggling feeling: “Have I seen all there is to see”?
- Why is it hard to get reliable market comps (and what to do about it)
From Reveal Real Estate - charting international real estate trends in Central America.
Posted in Buyers tips | 3 Comments »
Why do you have that niggling feeling: “Have I seen all there is to see?”
November 22nd, 2009
This post is the second in a series that explains how the real estate market works in Central America. Here we look at why buyers in Central America are often left wondering if they have seen all the real estate there is to see.
As a buyer in any market, it’s natural that you want to choose between all properties that fit your criteria. Because only then can you make an informed decision.
In the US, this process is relatively simple:
Let’s say you’re looking for a three bedroom house in Phoenix, for under $325,000 with a garage that’s located close to a good school and has a DriveScore of 70 or better. Well, with a few clicks, your agent pulls together a list of properties that fit these criteria. You review the list, maybe check out the Street View for a few of them, whittle the numbers down and go on a viewing.
While you’re out on the property tour you whip out your iPhone, compare the Zestimate against the asking price and organize your viewing experience with the Better Homes and Garden app.
That’s the beauty of the Multiple Listing System and all the IDX websites, apps and widgets that have been built around it.
The MLS is basically a central database of properties. When a seller lists their property with an agency it gets added to this database that in turn gives buyers the most comprehensive set of listings in their area of focus.
You’ve probably guessed where we’re going with this …
Welcome to a world without an MLS
Despite some valiant attempts over the years to start up local MLS-type systems, there’s still no MLS in Costa Rica, Panama, Nicaragua or Belize.
This means that when a seller lists a property with an agency, it doesn’t get added to a central database that other agencies can access, and buyers can’t sift through a full list of property for sale. (Oh and forget comparables, but that’s a topic for another post.)
So if a buyer really wants to see all that is available, they have to go on a property tour with every agent in the area they are interested in. There may be some local market experts or buyers agents who can short cut this process a little, but for the most part it’s a pretty daunting endeavor.
Making things simple
Our aim at Reveal Real Estate is to help simplify things. Of course we can’t claim to be a fully-fledged MLS. But we’re trying to build the next best thing by providing one place where buyers and sellers can access information on real estate developments, master planned communities and condo projects.
Our goal is transparency – to find every real estate development in the region and put this information online.
What to know more about how real estate works in Central America?
Here are the other posts in the series:
- What you need to know about how real estate works in Central America (and why you need to know)
- Are brokers really playing hard-to-get with their listings?
- Why is it hard to get reliable market comps (and what to do about it)
From Reveal Real Estate - charting international real estate trends in Central America.
Posted in Buyers tips | 3 Comments »
How real estate works in Central America (and why you need to know)
November 22nd, 2009
The best investors in Central America know exactly how the real estate market works. They know how property is listed and how local real estate agents operate. They stay on top of the online real estate marketplace and get hold of as much market data as possible.
Some of this is Real Estate 101, applicable to any real estate market. But when you look closely at how the market operates in Central America, you’ll notice important differences compared with the US.
We’re speaking from experience
When I was first researching the real estate market on Nicaragua’s Pacific coast in 2002, I went on property viewing after property viewing with a host of different real estate agents. We covered an enormous amount of ground, spending long days touring up and down the coastline. But despite this effort I was still left with that niggling feeling: “Have I seen all there is?“.
I spent hours on the Internet trying to figure out whether there were properties that fitted my criteria that I hadn’t seen. Instead of finding re-assurance online, this process confused me even more.
Many of the listings I stumbled across online had vague descriptions and almost no location information. It was almost as if brokers didn’t want me to see what they had on offer.
Fast forward to today and I know why brokers seem to play hard to get with their listings in Central America and why it’s difficult to get a comprehensive picture of the market.
(As it turns out, I’m happy with the investments that I made. But had I known more about how the market for real estate in Nicaragua works, the process would have been less fraught and I would have felt more confident about the decisions I was making.)
So how do things work?
We’re writing a series of posts explaining the intricacies of the real estate market in Panama, Costa Rica, Belize and Nicaragua.
We want to go beyond the usual insider tips for international real estate in Central America or the questions to ask the real estate developer. The posts focus on the process of real estate, the mechanisms of the market, the detail of how things work in practice, and what this means to buyers interested in these markets.
It’s the kind of information we wish we’d had when we were researching the market.
We’ll also present how Reveal Real Estate fits into the picture; how we fill some of the information gaps and help buyers make more informed decisions. We’re part of the market and have a passion for making things work better.
Here are the first posts in the series:
- Why are you left with that niggling feeling: “Have I seen all there is to see”?
- Are brokers really playing hard-to-get with their listings?
- Why is it hard to get reliable market comps (and what to do about it)
From Reveal Real Estate - charting international real estate trends in Central America.
Tags: Nicaragua
Posted in Buyers tips | 4 Comments »