Sunday 04 May 2003

Gringo Prices

Yes, the dreaded Gringo price! 

It seems that Tico's are under the assumption that all Gringo's are millionaires and will pay any price. It is this reasoning that some how justifies higher prices with no feelings of guilt.

This is also why some sales never happen, and the effect is far reaching even to the extent of hurting the economy. 

This hidden factor has been common practice since the beginning of time here.

OBVIOUSLY, people on vacation no matter where they are from ….. Feel justified in spending more money than they normally would at home. The locals living in a tourist destination, grow up seeing this and somehow believe that all Gringo's are wealthy. 

We see this frequently in our office when a Gringo comes in trying to list a home or property that they bought at an inflated price. It is not an easy task explaining to them that they paid too much and the value of their property may not even be worth that now. This is very frustrating for them and for us too. 

They don't want to believe they overpaid, and we really don't want to be the one who has to tell them that they did. 

Eventually with enough time, prices will rise or someone will be willing to pay over market price for that dream home that has everything they want.

How to avoid this trap………..

There are several things you can do: 

1) Use a reputable Realtor

2) Ask for a list of comparable properties that have sold in the area.

3) Most banks here have someone who acts as an appraiser for them and will provide this service for a small charge.

4) Ask the closing attorney to prepare and provide you with a settlement statement at closing for the entire transaction.
It should list sales price, closing cost, and all commissions paid and to whom.

This may take a little time and money but it will be well spent.

Here is how we avoid this dilemma.

When obtaining listings from Tico sellers, we send in our Tico agents who get them at Tico prices. If I go on the appointment, the price goes up dramatically. 

So I stay out of the picture when we are listing Tico owned properties. We work on a small commission and get the best possible price for our clients. We do not use net listings, and always give full disclosure at closing.



Watch for my article next week on: 

Teak Wood Farms and why they are so successful.

For further information please contact us:

www.CostaRicanRealtyGroup.com        
(506) 291-4437