Recession Improves Costa Rica Real Estate Industry

Imagine this: you are interested in buying a piecetrodden ground to sift through everything - not
of property in Costa Rica's southern zone, so yougood. It may be that the buyer has developed a
walk into one of the real estate offices in say -sense of trust with one agent, and really doesn't
Uvita Costa Rica. You consult for awhile with anwant to go through the whole process again with
agent there. (For the sake of this article, lets callsomeone else. This is not to mention that many
him "Rod") and off you go looking at propertiesbuyers are in Costa Rica on vacation and they
that fit your interest. After looking at all that Rodsimply don't have the time necessary to repeat
has to show you, nothing strikes you as the rightthe process numerous times. Seller's Problems:
piece So far not a lot of imagination has beenThose poor sellers. Here is a checklist of how to
required. Here's where it gets a little more difficult.most effectively go about marketing a property
Rod says: "how 'bout we pop on down to thisin Costa Rica southern Pacific zone.
other agency, some competitors of mine down
by Ojochal, and see what they've got" or "Let's1. Print up a flier that explains the property.
go on up to an office of my peers in Dominical2. Make a CD complete with photos of the
that's been around for years. They've probablyproperty, the survey (plano), explain the water,
got a few listings that I don't have that may be aelectric & access provisions and any fees
perfect fit". I know - hard to imagine, but staypertaining to these services.
with me here.3. Distribute the above to all the agencies in The
There is a fundamental change happening to theZone. This is usually done by the seller personally
real estate market in Costa Rica's southern Pacificvisiting each of the agencies and discussing their
zone that is making the above scenario alisting with someone there that will then hopefully,
common occurrence: that of the agencies workingput it on their website, and share the information
together to provide a better service to bothwith everyone else in the office.
buyers and sellers. The motivation for this change4. Visit the property with each of the listing
is, in part, thanks to the recession, and in part toagencies.
another thing called SPAR that I'll get to in a5. Afterward - check the various agency web
minute. Back in the day when we realtors were allsites to make sure that their listing is there.
fat & sassy and buyers were beating our6. Check in once a month or so to keep the
doors down, we didn't need each other. Thevarious agents mindful of the listing.
challenge for the buyer back then was to find an7. YUCK!
available agent that would help with finding a pieceThe ultimate solution to all this would be an MLS.
of land - everyone was busy. We each had ourWe don't foresee an MLS forming in the near
own listings, and there wasn't much need to sharefuture. However, local real estate agencies are
a commission. The global economic crisis hasmoving in that direction. Just for fun, let's call it a
changed all this. The demands of a down marketCLS system: "Cooperative Listing Service" There
have forced our collective hand and we are nowis a shift of attitude that has taken place amongst
finding that we fare better through cooperationus real estate professionals. Many of us are now
than isolation.happy to share commissions with the other
The Non-MLS Marketplace: The real estateagencies - the feeling being that half of something
market in Costa Rica does not have an MLS oris better than all of nothing - this is in part due to
Multiple Listing Service. If you are coming from athe recession, and in part due to the fact that it is
country where the use of an MLS is commonjust good business.
practice, it may be difficult to understand the wayWhat is SPAR?
things work in a non-MLS marketplace. TheShort answer: Southern Pacific Association of
non-MLS business model in Costa Rica deprivesRealtors.
both buyer and seller of a core function in theLong answer: The idea was originally promoted by
MLS model: REPRESENTATION. The real estateone of my associates in the real estate business
agent is tasked with caring for both sides of thewho took the first steps to invite a group of the
deal - buyer & seller, while also beingcore real estate agencies to get together and
concerned about his/her own commission. Take adiscuss the concerns of our industry. The
minute and think about some of the disclosureresponse has been very positive and SPAR was
concerns this might bring up.born. So far SPAR is an informal meeting of real
Buyer's Problems: When a buyer spends a day orestate agents in The Zone where important
two with a single realtor looking at property, theytopics are discussed, and listings are shared. The
are seeing what that particular real estate agencypotential of this organization to effect major
has for listings. To really know that they haveimprovements to the real estate industry
seen everything, a buyer would have to visit all ofthroughout The Zone is considerable.
the agencies, and probably go over already