author Call Us +506 2289 5125

5 Common Realistic Listing Price Objections on Costa Rican property

Estimated Reading Time: 6 Minutes

5 Common Realistic Listing Price Objections on Costa Rican property

Property owners in Costa Rica are often not realistic about the listing price of their property; so I decided to publish the five most common listing price objections.

Listing a Costa Rican property for sale can be a lot more complicated than you think, no matter if you’re a motivated seller or not.

My article for the Tico Times in November 2015, “8 reasons why your property in Costa Rica has not sold in 7 years,” keeps generating a lot of emails and calls from sellers. They have been trying to sell their property for years and think I have the magic solution.

To be able to come to a realistic listing price for the property, there is a variety of factors to take into account. First, you need all the necessary information on those factors to make an educated decision. Unfortunately, we don’t have CMA’s, because it’s impossible to find out what other properties in the neighborhood have sold for. That doesn’t make it easier either.

Many property sellers think we still live in the 2006 – 2008 real estate boom and expect to receive a much higher price than is realistic. They think their property is worth a lot of money.  And therefore they overprice their property and it takes them years to sell.

Of course, we all want to make a profit on our real estate investment. But if you have purchased your property at the top of the market, you cannot expect to walk away with a profit if you’re in a buyer’s market.

And going up with your listing price after it hasn’t sold in 2 years won’t do it either.

The behavior of a real estate market is more or less the same everywhere in the world. One of the essential rules in real estate is “buy low to sell high.” Investopedia explains it very well in this article if you’re interested in diving a bit deeper into this exciting topic.

Our agents are in an uphill battle all the time, trying to explain the facts, for lack of CMA’s, to a seller. There are five common listing price objections to a realistic property value:

5 Common Realistic Listing Price Objections on Costa Rican property

1. I paid more for the property when I bought it!

Timing is everything when investing in real estate. Einstein was right when he said that “In the middle of difficulty lies opportunity.”

If you buy real estate in the middle of a real estate boom, your timing to sell at a higher price in a buyer’s market might not be the right one, unfortunately. I suggest you also have a good look at how long you have lived and enjoyed the property. That should have some value to you too.

So either price to sell, or wait until the market gets better.

2. I won’t give it away!

There is no need to give it away. But, your property is only worth what a buyer is willing to pay for it. The price usually depends on the real estate market conditions or the property conditions. If you are eager to take an expert’s advice, ask your agent for guidance on finding a realistic listing price without having to give it away.

5 Common Realistic Listing Price Objections on Costa Rican property

3. We can always drop the price later

If you are a motivated seller, price it right from the beginning. After a while, a listing turns stale. Pricing the property at the right price will save you many headaches and frustrations.

If you’re not motivated to sell, why put it on the market.

4. My neighbor sold for a million dollars

Because the neighbor sold his house for a million doesn’t necessarily mean that you will find another buyer just like it. Is the neighboring property comparable to yours? Is it the same size? Does it have the same amenities, views, land size, construction size, and construction quality? Was it sold under the same real estate market conditions as it is now?

Listen to your real estate agent, then set the price together.

5. I need that amount to be able to purchase what I want

Many sellers think they know enough about Costa Rica real estate to take an educated decision on calculating the right listing price. Other sellers are convinced that their property has a particular value because they say so. In some cases, sellers insist on having an unrealistic listing price because the property they want to purchase next has that value.

5 Common Realistic Listing Price Objections on Costa Rican property

Real Estate Agents

Indeed, some real estate agents in Costa Rica are not professionals. Some agents do not know how to price a property because they have not been trained on real estate values by their broker. And they don’t know anything about the market values. Nevertheless, a professional real estate agent usually knows better than the seller. That’s because the agents know what comparable properties have sold for in the area, which is the most important guideline.

In many cases, the seller and I are not in agreement about a realistic listing price. Then I ask them to contact other agents to come up with a listing price. Some agents prefer not to take the responsibility of putting the wrong listing price on the property, though.

Are you are a seller of a Costa Rican property, and do you find any of the above objections realistic? Then, you are not ready to sell your property.

My recommendation

Do not try to sell your property if you’re not happy with the suggested listing price. First, talk to your agent about your listing price objections or wait until the real estate market is near the top again.

Contact us when you need any advice from a serious real estate agent on selling your property at a realistic price.


If you like this blog, subscribe to my newsletter by clicking the banner below.

Click here to subscribe to Ivo's Blog

I want to remind our readers that we appreciate any referrals you can send us. Also, please remember the GoDutch Realty agents when you talk about your home in Costa Rica; we appreciate it.

We Love your Referrals at GoDutch Realty

Facebook Comments
img

Ivo Henfling

If you are looking to buy a home in Costa Rica or invest in a condo anywhere in the central Valley, or looking for any property for sale in Escazu, you need to call me. I have been selling real estate in Escazu for over 20 years and can show you hundreds of happy buyers of real estate in Escazu and other areas. To me, a deal is not a good deal unless both buyer and seller are happy.

Related posts

9 Tips to efficiently run private real estate without any hassle

Estimated Reading Time: 6 Minutes If you’re an investor who wants to make money with private...

Continue reading
Ivo Henfling
by Ivo Henfling

5 Crucial Keys to NOT be an Angry Seller

Estimated Reading Time: 7 Minutes Sometimes, a lovely person becomes an angry seller that...

Continue reading
Ivo Henfling
by Ivo Henfling

Do property sellers accept almost half the asking price?

Estimated Reading Time: 5 Minutes Information floating on the internet seems to give property...

Continue reading
Ivo Henfling
by Ivo Henfling

One thought on “5 Common Realistic Listing Price Objections on Costa Rican property”

  • Ivo Henfling

    13 March, 2022 at 10:55 am

    Kathy P. makes this comment: Great article, though it may sting to some sellers. Timing is indeed everything.

    My last Chicago area condo in Forest Park (a very average, older community) was purchased in spring of 2008 for $139,000. I negotiated the price of the newly renovated 1BR/1Ba condo, just shy of 700 square feet down from the listing of $149,000. The real estate market crash that autumn found slow recovery in values. In 2014 I was lucky to get the sale price of $95,000 since no condo in my building had sold over $50,000 in two years. I also sold it furnished. I had a 15 year mortgage and had been paying extra each month, so was happy to net $12,000 at closing, and not still owe the bank. Fortunately, this condo sale was the only one for me that closed far less than the purchase price, but did not upend my personal finances or retirement master plan.

    Once I realized Costa Rica was not the place for me as an aging person, the sale of my Condado de Baviera condo was indeed timed perfectly. That one too, was sold furnished. Those funds allowed me to purchase my 2BR/2Ba condo in Ft Myers for $44,000 cash and accomplish a goal of retiring without a mortgage. The sellers market here has exploded with low inventory and although I have put + or – $60,000 into renovating this condo, realtors tell me I could get $200,000 if I sold now. I am not doing that since I like it, still have most of my marbles and where would I go? So, until I am ready for assisted living, I am sitting on my “nest egg”.

    Reply

Join The Discussion

This site uses Akismet to reduce spam. Learn how your comment data is processed.