As an expat dreaming of a new life in Costa Rica, the allure of investing in tropical real estate can be irresistible. The promise of swaying palms, pristine beaches, and a laid-back lifestyle might have you ready to sign on the dotted line.
However, before you dive headfirst into the Costa Rican property market, it’s crucial to navigate the potential pitfalls of selecting a real estate broker. Your choice of broker can make the difference between a smooth transition to paradise and a costly nightmare.
Let’s explore the essential factors you need to consider to protect your investment and ensure your Costa Rican dream doesn’t turn into a regrettable reality.
1. Broker profile
Knowledge is imperative. As a client, you should ask for their license (usually from their home country) to sell real estate, and additionally a license from the Cámara Costarricense de Corredores de Bienes Raices (in English, the Costa Rican Chamber of Realtors). Unfortunately just having this license doesn’t mean you’re in the clear either. The Costa Rican government allows just about anyone to have a license. Personally, I find it terrible and irresponsible. There is, however, a law to change this situation, though it has been waiting for several years to be approved. Sadly we will continue to damage our credibility and image until Costa Rica enforces stronger regulations on real estate brokers.
2. Experience
Simply put, if your broker has experience you will get the best deal that the market has to offer. He or she must know not only the regulations, but also the community. Speaking of the community, it’s imperative that your broker be at least bilingual in Spanish and obviously your mother language. I know a lot of great brokers who speak more than six languages. Any other way and you will be missing out when it comes to better understanding the locals, sellers and buyers.
3. Ethics
This is admittedly difficult to monitor if you’re new to investing in real estate, but it’s also a far too important point to ignore. Ultimately, you have to do your homework and check with people from the area to get some background on your broker. If you turn a blind eye and work with someone unethical in his or her dealings, I promise you’ll be sorry later on. What starts bad will end even worse, so please take this seriously. I’ve heard too many people say they bought a ghost property, were lied to, or any other number of things suddenly went wrong.
The right broker will give you all their information and more. Buy and invest smartly by getting an experienced, licensed broker with an ethical background. Follow these steps and you’ll protect yourself from a nightmare.
Lucrecia Cordero has been a real estate professional for over 25 years after working as a journalist and public relations adviser prior to becoming a broker.
