Finding a Broker

Finding Certified Real Estate Broker in Costa Rica

Certified

The Costa Rica Chamber of Real Estate Brokers (CCCBR) is a self-regulating institution, founded in 1974, with a goal of providing consistency and integrity in those who conduct real estate brokerage services within Costa Rica. The Costa Rica Chamber of Real Estate Brokers, while not under national regulation, adheres to a strong ethics code and actively advocated for the requirement for all brokers to obtain a real estate license. Costa Rican law does not require that a real estate broker have any certification so it is important to incorporate your own good judgment when selecting the criteria that you find to be vital in deciding whether a potential broker is qualified to represent you in the buying process. Membership in this group does not guarantee the knowledge and expertise that you may deem requisite for an individual to represent you in a real estate transaction.

It is not mandatory to have broker representation when buying Costa Rican real estate. If you are well versed in Costa Rican law, assessing property value, and speak fluent Spanish, it is possible to go it on your own. However, a good broker with experience, a track record of satisfied clients and knowledge of the area can always help.

Sales commissions of 5% to 11% are paid by the seller so it is important to recognize that their loyalty may not be with you. How do you tell if some one is going to do a good job advocating for you? Many North Americans find asking prices that are way too high and brokers that are not as professional as they should be. Some of the larger real estate franchises have moved into Costa Rica and bring a big and familiar name. Franchises charge up to $30,000 for membership, annual dues of up to $500, a brokerage service fee of 2% per successfully closed real estate transaction, corporate overhead and advertising fees and regional advertising fees. All of these costs must be recouped and the burden is placed on their buyers. There is no legitimate affiliation between owners of the franchise’s and you can easily find one who is unethical and under-handed in their dealings.

So if you cannot rely on certification or big named companies where do you go? The answer is to use some of these perimeters like certification with the CCCBR, but most importantly incorporate your best judgment.

Judging experience, integrity and area knowledge?

Does your broker have formal real estate training?
How long have they been in the business? In Costa Rica?
Can they introduce you to satisfied clients from the past?
Are they Costa Rican or are they legal residents of the country?
Are they fluent in Spanish and in English?

Judging professionalism

Are their listings current?
Are they a full time broker?
Are they timely and accurate with appointments and contact with you?
Do they seem to constantly sell real estate?
Are they helping you understand the entire process? (prices, location, contracts, financing, terms, transfer fees and legal process)
A good broker should give you a free registered survey map of a property of interest with a unique registration number..
Are they asking the right questions to help you find what you are looking for and showing you properties that match your requests?

In summary it is important for you, a prospective real estate buyer, to not only look at certification from outside organizations, but also use your own judgment in the certification process. A real estate purchase is a very personal thing. The most important criteria is your confidence that a broker will do their best for you!

Experience

When looking into finding the right broker for you, it is vitally important to find some one with experience. There are many legal steps in the process and a lot of your money involved. The property law is Napoleonic, not Common Law as the U.S. has. Your broker must know the ins and the outs of Costa Rican real estate law so that he or she can guide you through the process. There are complicated title transfer and notary fees and other taxes that can be minimized with proper legal workings and your broker should help you understand how to do those things. An experienced broker should have a strong relationship with a lawyer that they exclusively work with. A responsible broker will recommend that you seek your own legal counsel as well. An experienced broker will know all of the different financing options for a foreign buyer and the right broker for you will help you understand them.

The value of finding an experienced broker can be seen in their ability to help you find a fair-priced property and a good investment. To gauge experience some areas to look at are:

Is their primary job/ source of income real estate?
Do they have a large and diverse offering of their own listings?.
Do they take the proper steps to ensure that your buying process is smooth?

A good broker will have travel partners, transportation help and professional

contacts to ensure a smooth “full disclosure” transaction.

The right broker for you will form a relationship with you and truly understand your specific needs.
They should demonstrate great knowledge of the area in showing you properties that meet the parameters you lay out and do not waste your time with those that are clearly not what you are looking for.

When looking for an experienced broker, go with your gut. Do they seem to be an expert and a guide in the process or are they frantic and under-prepared. A great broker will make the process fun and exciting and most of all informative. Working with an experienced broker with an excellent track record is a wonderful way to learn about Costa Rica.

Track Record

The right broker for you will have a track record of happy clients and friends who enjoyed their buying experience and continue to have a relationship with the broker. Your broker introduces you to the area and guides you through a very important life decision. If done property, this is the start of an excellent ongoing relationship. When you are in town, how is your broker received by others? Do they seem genuine and honest? Do they love Costa Rica and the region of interest and do they seem excited about the opportunity to show it off? These are all the signs to look for, but how do we get a sense of their true track record?

Interview your potential broker for the job. How did they get into real estate? When did they get into real estate? What do they enjoy most? These type of open ended questions can really give you a sense of some ones motivations, intentions and competencies. Prospective employers and interrogation officers use these same type of open ended and informal questions known as behavioral interview questions. These give the broker the opportunity to show you who they really are.

Ask them to show you their resume. It is one thing to get a feel for the individual through an informal Q and A session, but there is serious money on the line. Make them show you some hard evidence. Have them introduce you to former clients or have them show you their certifications. Make sure you see their office and it is clear that real estate transactions are regularly done their. Have them show you properties that they have sold themselves.

If the process is thorough and focused on your wants and needs from the first contact to the close you have chosen the right broker. If they operate as your agent in the process, you know you have chosen some one who likely has a track record of working with clients that have had successful real estate buying experiences in Costa Rica.

Language

Much business in Costa Rica is done in English. One could easily broker a real estate deal in Costa Rica without ever speaking a word of Spanish. It may surprise you to hear that having a broker that speaks Spanish is vitally important. Their commitment to learning the real estate laws, gaining valuable contacts and finding best ways to help you find the best deals in Costa Rican real estate are mirrored by their commitment to learn the language and the culture.

Why are they in a Spanish speaking country if they do not speak Spanish? Why are they in Costa Rica if they are not getting the full benefit of the wonderful culture and experiences that the country offers? If they cannot or will not make the long and difficult commitment to learn the language then they are not the caliber of individual that you want advising you during a monumental financial and life decision. Maybe they are willing to make the commitment, but have not been in Costa Rica long enough to learn the language? That is a red flag on the experience and track record issue!

While business can be done in Costa Rica without Spanish, the lawyers, accountants, property owners and bankers will respect an individual who values their language and culture. Spanish news papers have property listings that are the exact same as the English news papers, but for up to 300% less. The negotiating respect and full disclosure from those who the broker works with in order to get you the best deals in the market will be more accountable and offer better prices to those who are fluent in Costa Rican culture!

While going through the process of closing on real estate, out of respect to you, the lawyers and others that are involved will speak English. It is likely that you will not see your broker speak a lot of Spanish regardless of his or her proficiency, but the value of this factor should be understood by a prospective buyer.

Area Knowledge

The importance of area knowledge in a broker can be seen on many fronts. First off, how important is the area in which you buy real estate to you? The answer is extremely important. So a broker with limited knowledge of the area cannot begin to help you find the right property.

A brokers knowledge of the area shows preparation and respect for their clients. A certain level of experience goes hand in hand with knowledge of the area. The property type that you wish to have is one thing, but the area in which it is located can make all of the difference.

How close will I be to the grocery store or the bank? Does it flood here in the summer? Do I get cell phone coverage here? Is their night life? Crime? Schools? Hospitals?

Your broker should live and thrive in the area. They should be able to spit out the answers to all of these questions easily. Having a tour guide in a broker is an added value that one should demand in their real estate agent. There is no better way to get a sense of the real estate value than from a real estate expert who is also an expert in the area. There are so many little things that go into what types of places we like to live in and spend time in. This ocean front real estate is great, but is the water safe to swim in? I love that rainforest mountain home overlooking the ocean, but is it easily accessible?

Some times real estate can have an immediate wowing effect on us. If we do not get a good sense of what life will be like inside and outside the home, there is plenty of disappointment to be had down the road. Whether you want a retirement property, a winter/2nd home or a pure investment property, it is crucial that the lifestyle that the region affords will accommodate your expectations.

For those who are mostly in it for investment, does your broker understand what goes into property values and trends? Is their room for growth in the region? Is there a push for development? If your broker is not up on current events. It is time to look elsewhere.