Why do you have that niggling feeling: “Have I seen all there is to see?”
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)
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How real estate works in Central America (and why you need to know) « International real estate in Central America
Nov 22, 2009
[...] the next post in the series – stay tuned for [...]
Are brokers in Central America playing hard-to-get with their listings? « International real estate in Central America
Nov 25, 2009
[...] Open listings and inventory hoarding by brokers is common in the region. It’s a factor of not having an MLS system. [...]
Why is it hard to get reliable market comps (and what to do about it) « International real estate in Central America
Dec 05, 2009
[...] 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 [...]