Costa Rica Expat Tours

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My Life in Costa Rica – A Warning How Not to Do It

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Well, I’ve heard it’s really a nice place…

That’s what Doris Bray told me late in the year 2000. I’d been on the hunt for deals since the dot.com bubble burst and I’d stopped by to pay her a visit. Doris R. Bray is a founding partner of the Greensboro, N.C. corporate law firm, SchellBray. I was also a lawyer, but had decided to exit the profession in pursuit of a career as a mergers and acquisitions advisor. I’d done pretty well for a while selling small companies in the internet space, but that all dried up at the turn of the century. I was hoping to find some deal flow through Mrs. Bray and she indeed told me that she knew a guy who owned a private for-profit university in Costa Rica. My knee-jerk response was to ask her,”where the hell is that?” Only moments later I followed that up with, “isn’t it dangerous down there?”

To make a very long story short, I ended up representing the owner of that private for-profit university, currently known at Ulatina (then Universidad Interamericana), which on my birthday, December 5, 2003, was sold in a deal orchestrated by yours truly to Laureate Education, Inc. (formerly known as Sylvan Learning, Inc.).

During the course of that deal my life changed dramatically. Due to some personal failures on my part, I found myself separated from my first wife. I’d also fallen deeply in love with this formerly mysterious country called Costa Rica.

Incidentally, this post is an abbreviated version of the full story of my life in Costa Rica, which will soon be memorialized in my self-published memoir, likely to be entitled, A Coming of Age in Costa Rica.

I started living full-time in Costa Rica around 2006. The money from my big deal was dwindling due to the divorce, the payment of debt I’d racked up in the 2-year course of being focused on completing that deal (and not much else), and my launching a tourism business in Costa Rica. I decided traveling back and forth was just not economically feasible, so I moved lock, stock and barrel to San Jose, Costa Rica.

And there I lived until early 2012 when I moved to the southern zone, to the town of San Isidro de El General. Since 2004 I’d remained wholly focused on the tourism business I founded on the heals of my deal. I married a Colombian-borne, but Costa Rica nationalized, woman of about 8 years my younger in 2009. We had our ups and downs in the first few years and I made the move out of San Jose to the southern zone during one of the down times.

It proved to be a good move. Initially I thought it would be wise to live in the city, with its country-central location and well-developed communications infrastructure. Most of my tourism clients would arrive into the San Jose international airport and it was nice to be able to provide the personal touch of meeting them there. However, the traffic, hustle, and bustle of the city gradually began to get under my skin. I decided to haul ass to a place that had both of the two things I loved most about Costa Rica, its gorgeous mountains and beaches.

My wife, Lily, and I were able to patch things up and she ultimately moved south as well. However, she wasn’t as happy as I was living in the “remote” southern zone. Also, as Costa Rica grew in stature as a world-wide tourism destination, so did the competition as “big-box” tourism related companies began to hone in on the opportunity. As a result my webpage all but disappeared from the Google search rankings and my sales and income took a corresponding dive.

We made the momentous decision for me to attempt to repatriate back to the U.S. in early 2015. The decision proved to be disastrous for a myriad of reasons. Later that same year I returned to Costa Rica, more than a little worse for wear, with nothing more than the shirt on my back, a surfboard, and, luckily, a car that was waiting on me upon arrival. We’d sold pretty much everything before taking off for the States, except, thankfully, that old car.

I dabbled in this and that trying to find my bearings and generate some income. Nothing seemed to pan out until one day the idea dawned upon me to call two old acquaintances, Daveed Hollander and Jimmy Drews of the Coldwell Banker real estate office in Dominical. I’m not sure if they saw in me a potentially stable agent with deep knowledge of Costa Rica and a rare permanent residency, or if they just took pity on me, but whatever it was, they invited me on.

For the next year and a half I paid my dues, struggling to complete my first sale as a real estate agent. Things began turning around for me in mid-2017 and they’ve gotten increasingly better ever since. I am now settled-in for the long-haul as a Coldwell Banker agent operating out of the Dominical office. I may be opening my own Coldwell office in La Palma, on the beach road between San Isidro de El General and Dominical very soon.

I’m very happy these days living in the mountains above San Isidro de El General and working as a real estate agent serving the southern zone’s mountains and beaches. My wife and I also enjoy taking month-long trips to her home country, Colombia, each year.

I’m writing, quite candidly, about my life in Costa Rica because I want you to know me a little better. Of course, if you want more detail (and believe me there’s a whole lot more of that), you’ll just have to stay tuned for the book. It’s currently gathering digital dust waiting to be sent to an editor. Hopefully, by the end of the year it will be live on Amazon.

My life in Costa Rica over the past two decades has been quite a ride. I don’t recommend anyone do it like I’ve done it. It’s certainly better to have your ducks in a row to a far greater extent than I ever did.

I guess in a sense, Costa Rica sort of found me rather than the other way around.

Nevertheless, I couldn’t be happier!

P.S. Just in case you were wondering, I’m following my own advice in that inconspicuous post and therefore that book is still gathering digital dust as of September 2022…

Is It Time to Make Your Costa Rica Expat Move?

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Costa Rica Expat Move

Here are 5 reasons that the answer might just be yes…

A Shaky Economy…

Speaking of shaky, you’re probably shaking your head wondering what the hell I’m talking about. The stock market has soared under Trump (well, except for December). Taxes and regulations have been cut to the bone. In short, for some, business is booming.

However, as one of the greatest investors of all-time, Ray Dalio, will readily tell you, America has become the tale of two economies…one for the very rich and another for everyone else. Even though the economy has “boomed” under Trump in many measurable respects, inequality has also increased, as has personal and national debt, and scientific research, especially in areas of technologies that can improve the environment and the quality of life for future generations, has been gutted.

Ray Dalio likens the current economy to the year 1937, when the world was on the brink of war. Does that mean that the world is headed towards war in the next few years?

Well, these days world wars aren’t so likely, since most rational heads of state sort of know that no one would come out a winner in a world wide nuclear conflict. Nevertheless, growing worldwide economic equality, along with population displacement due to civil strife and, increasingly, the effects of global warming, will be a destabilizing influence on the U.S. and worldwide economies for the foreseeable future.

Does Costa Rica offer an escape from all that? Costa Rica has long been the “Switzerland” of Latin American and has kept its nose out of the messes that its Latin country neighbors seem to repeatedly get themselves into.

I guess what I’m saying, more than anything else, is perhaps it’s time to get out while the getting’s still good.

Prices Still Relatively Low (in some areas)

Costa Rica is certainly not the cheapest country in Latin America. I just got back from spending several weeks in Colombia and it indeed is cheaper there, for the most part. Nevertheless, real estate prices in some areas are still very good. Property prices in high tourist traffic areas, such as Costa Rica’s many popular beach communities, which suffered greatly in the 2007-8 crash, have crept back up to a large degree.

But there are areas off-the-beaten-path that remain quite appealing. One of those areas is my own home in Perez Zeledon. This area really has some great things going for it: like the city of San Isidro de El General (Costa Rica’s second largest outside the GAM of San Jose); the highest mountains in the country, which boast incredible panoramic views and host a dazzling degree of diversity in flora and fauna; and you can live in a mountain climate and still be less than an hour from one of Costa Rica’s most gorgeous coastlines, the Costa Ballena (with beaches like Dominical, Uvita and Ojochal).

There are great values to be had in Perez Zeledon. Here you can find a nice home on some acreage with a perfect year-round climate and great mountain views (with maybe even a glimpse of ocean) for less than $300,000. And what’s also great is that you’ll be only minutes from a super cool city with all its conveniences and less than an hour from the beach!

Varied Inventory to Choose From

Costa Rica is a tiny country, about the size of West Virginia and with less than 5 million inhabitants, about half of whom reside in the “gan area metropolitana”, or GAM, of the capital city, San Jose.

Even so, there is so much diversity to choose from in terms of urban living, verdant mountains or sparkling beaches, cool, hot, or steamy hot jungles, lakes and rivers, etc., etc., etc…

So, no matter what type of expat life you think you want to live, you can probably find the perfect spot somewhere in Costa Rica. I wrote an article some time ago with a framework to help you make that decision. I call it the 4 C’s of Costa Rica expat living.

While I am not familiar with the real estate inventory in markets outside of the one where I work, the mountains of Perez Zeledon and the Costa Ballena, I can at least tell you that in our market you can find pretty much anything you might be looking for. Well, there is one exception to that, which is beachfront property. The topography of our area doesn’t really lend itself to that, since we have mountains that end right at the shoreline, more or less. For beachfront stuff, the beaches of Guanacaste are probably a better (albeit pricier) bet.

However, if you’re looking for a house in the hills with a great ocean view, we have it. If you’d prefer the convenience of condo living, we certainly have some outstanding product. Want to be close to a growing city with all its conveniences? We have one in San Isidro de El General. Want to buy some acreage in the mountains for horses or other livestock, with a nice home and maybe even an ocean view? Yep, we’ve got you covered there too.

Exchange Rate in U.S. Dollar’s Favor

During the past year (2017) the Costa Rican colon exchange rate has soared to levels against the U.S. dollar that I have never witnessed in my almost two decades here. At the moment of this writing it’s around 600 to the dollar. Historically, it’s always been closer to 500. So, for folks coming to Costa Rica with dollars to spend, Costa Rica has gotten a bit cheaper. The exception to that, however, is the Canadian dollar, which I believe right now stands at about .75 of $1 USD.

Political Turmoil at Home

I don’t like to get political in this blog, or in any regard when the subject is Costa Rica expat living. However, you can’t deny the fact that the political situation in the U.S.A. is appalling and seems to get worse by the day. That is spawning deep divisions in society. In short, America is increasingly becoming not such a nice place to live these days.

Well, I can tell you Costa Rica will be a breath of fresh air in comparison. Costa Rican society is largely apolitical. They have their big election party every four years, which is colorful and festive, but hardly divisive on the level that we’re currently seeing in the States. And the expats around here, while they do harbor their own political sentiments, generally they keep those to themselves in an attempt to live what we call down here a “pura vida” lifestyle of live and let live, regardless of political persuasion.

So, there you have it…five good reasons to make your Costa Rica expat move sooner rather than later.

And I’m here to help!

How Safe is Costa Rica – Really?

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How Safe is Costa Rica

How safe is Costa Rica – really? I get asked that question a lot and I mean an awful lot.

So, I thought I’d write a post providing my opinion on this important issue. In the future expect to get a link to this post if you ask me the question…

In Terms of Economic Security…

The general question of safety can be taken a couple different ways. The first one that I will address is economic security, i.e., is Costa Rica a safe place to invest your hard-earned dollars? I’d imagine most folks who ask are more concerned with the second part, which concerns physical and material security. But, nevertheless, I thought it pertinent to address the economic aspect as well.

Historically speaking, Costa Rica has been a relatively safe place to invest. Now, there are a lot of ways to do so poorly and many do make bad, or even stupid, investment decisions and lose their shirts in the process. This blog has many posts written to help you avoid those mistakes. But, generally speaking, Costa Rica has been a safe place for foreign investment over the years.

Could that be changing?

Well, Costa Rica is having a bit of a deficit crisis these days. And unlike the United States, Costa Rica doesn’t likely have the ability to quantitatively ease its way out of the mess. The new presidential administration of Carlos Alvarado is taking steps to correct the problem, but those actions are being met with widespread public resistance. We are now in the umpteenth week of a national strike against these austerity and tax measures aimed at tackling the deficit. It remains to be seen if the government can deal with this in a way that avoids major disruption.

As a result of all that, together with current strength in the U.S. dollar, the Costa Rica colon has reached an all-time high of around 610 colones to 1 greenback. That’s not so good for the average Costa Rican as inflation is ticking up as a result. But it can be good, at least in the short-term, for foreign investors buying Costa Rican colon denominated assets with dollars.

What’s my opinion? Well it’s mixed. Costa Rica needs to correct its fiscal deficit. If it doesn’t, it will put further pressure on the economy and that could ultimately be bad for anyone living here, foreign or local. However, right now Costa Rica remains a good and safe bet and with the record strength of the dollar against the colon, a relatively cheap one too.

OK, that’s enough with the boring economic stuff…what about…

In Terms of Physical and Material Security…

If you’re from the U.S. and have never been to Latin America before, you’ll probably be surprised to see that most homes, especially in urban areas, have walls around the periphery, sometimes adorned with razor wire, and iron bars on all the windows. I often get asked by alarmed gringos if that signifies a lack of safety.

Well, yes and no. Let’s start with the good news. In part it’s cultural and you’ll see that phenomenon not just in Costa Rica, but in just about any Latin American country, or at least all the ones I’ve been to. Nevertheless, it does have a practical aspect. First of all, Costa Rica is a poor country and most of its citizens live in a state of poverty that even the poorest in the U.S. couldn’t imagine, from a material standpoint at least. That level of poverty can lead to desperation, which can lead to property crime. Secondly, many older Latin Americans have experienced, first or second-hand, the specter of social upheaval, or even outright revolution. And if there’s a revolution erupting and an angry proletariat amassing in the public squares, having your home set up like a fortress does make a bit of good common sense.

Bottom line, there’s a little bit of culture and practicality mixed in with the fortress-like architecture.

Costa Rica is a gateway for drugs moving from South America to North America. It probably will be for the foreseeable future, or as long as the “drug war” continues unabated. That means that at any given time there are some very unsavory characters out there who wouldn’t think twice about using extreme physical violence to protect what they deem is their coveted piece of the drug trade pie. Now most Costa Ricans have nothing to do with this…by the way, same goes with most Colombians. But even so, the average peace-loving Costa Rican (or expat living among them) can get caught in the crossfire of rival drug cartels and gangs. That happens more often in the San Jose metropolitan areas and also in port towns, especially Limon. But it can happen anywhere to anyone.

Costa Rica has its own immigration issues. I’ve heard figures as high as 500,000 for the number of illegal immigrants living in Costa Rica, many from Nicaragua, as well as other countries. And as the strife increases in neighboring countries to the north and south, that trend will likely continue and grow. This can lead to problems with crime as some of those moving into Costa Rica are either criminals when they get here, or resort to crime for survival reasons. Oh my god, I sound like Donald Tump! Practically speaking, the uptick in crime in San Jose may indeed have a lot to do with this immigration influx. I don’t know that to be the case, but wouldn’t be surprised if it weren’t. Bottom line is that just like in any large metropolitan area in the U.S., or anywhere else, there are crime issues and you have to be wary of them.

There’s another aspect of physical and material security that most realtors won’t tell you about. And that concerns what I call “culture clash.” There are some areas of Costa Rica where foreign investors have moved in and sort of changed, or attempted to change, the cultural landscape. I am thinking chiefly of places like the Guanacaste “gold coast” and to a lesser extent the central Pacific around Jaco and even my own southern Pacific area known as the Costa Ballena.

For starters the coastal areas of Costa Rica, as beautiful as they are, tend to historically be some of the poorest areas of the country. Job opportunities are few and far between, infrastructure can be very spotty, and most in these coastal areas live off the land and sea. When you couple that with an influx of wealthy North Americans moving in and creating things that these folks can hardly afford, it tends to create resentment and that can lead to outright culture clash. This has lead to problems, mainly with property crime, but sometimes even with physical violence in the form of home invasions and other strong-arm robbery tactics.

The North Americans who invest in these areas learn quickly to take measures to avoid problems with security systems and even armed guards. I am not trying to paint an exaggeratedly negative picture, but I do want to be realistic and tell you the truth. Am I trying to say don’t invest in those areas? No, not at all. Just know the landscape and what you’re getting into and don’t be naive about the risk of encountering problems.

So, what’s my overall opinion on Costa Rica safety. How safe is Costa Rica – really?

It’s safer than virtually any other country in Latin America and I’d say the pros of investing and/or living here far outweigh the cons and that includes the safety (or lack thereof) con.

Furthermore, the way things are going up north lately, I’d say Costa Rica is a degree or two safer than what you’re apt to experience on main street U.S.A.

Working with a Costa Rica Realtor

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Working with a Costa Rica Realtor

A Few Things You Outta Know

I’ve had the great fortune in my life to have worked in two professions that many view as necessary evils to be avoided, if possible…

And those are lawyer and real estate agent.

What makes matters worse about being a lowly real estate agent in Costa Rica is that there is no licensing requirement whatsoever. Anyone can declare themselves an agent and many do. The market is rife with Costa Rica realtors who should probably look for another way to sustain themselves in Costa Rica, if you know what I mean.

But that’s not to say that there aren’t any good ones!

Now, this blog post is not going to be an attempt to convince you to use a good Costa Rica realtor in the course of your real estate search. I’ve already assumed that decision has been made. This post is rather to tell you a few things you outta know about working with Costa Rica realtors that might make for a more enhancing and valuable experience.

The life cycle of a Costa Rica deal is a whole lot different than what transpires in the U.S., or Canada. For starters our buyer prospects are usually not here, have never been here, and probably won’t be here for some time, months even (if ever).

A lead is usually obtained via a web site property listing. That starts a conversation between the Costa Rica realtor and his buyer prospect via email and phone. Hopefully that will lead to a relationship. At least, that’s always my goal. And even more hopefully, once that buyer prospect does finally make the trip to Costa Rica to see properties, he or she will contact that same agent who’s been trying to build a relationship. However, often they don’t. And that can be intensely frustrating for us Costa Rica realtors.

If you’ve found an agent you feel rapport with and who’s actually taking up much of his or her valuable time to help you, even before your arrival to Costa Rica, it can pay to stick with that agent, at least in the area of his or her real estate coverage. But what many buyer prospects do, unbeknownst to the realtor that’s trying to build the relationship with them, is to contact multiple real estate agents and try to set up showings with each and every one. That can lead to confusion and also poor service. Once an agent knows that you’re behaving in this manner, he will probably not be as motivated to spend the time and attention that he otherwise probably would.

My recommendation for working with realtors in specific areas is to try and find one you feel “right” with and stick with that one. You will then have a valuable resource on the ground in Costa Rica and that can go a long way towards helping you successfully achieve your goal…and not lose your ass in the process.

Showing properties in Costa Rica is not anything like it is in the U.S. For anyone who’s been here you might have noticed that our infrastructure is not all that great. And that even goes double for the infrastructure in those beachy and jungly places where expats tend to want to buy. We agents get our valuable tools, i.e. our cars, beat the hell up on these roads in the process of showing you properties.

Furthermore, properties are hard to find, as well as hard to get to. It takes times to show properties in Costa Rica. A full day of showings might consist of 5 properties max. And trust me, you’ll be more than ready for a beer (or your favorite beverage) at day’s end.

So, if you make an appointment to see properties with a Costa Rican realtor on a particular day and at a given time, please show up, on time! There is nothing more frustrating than to block out an entire day for a buyer only to have that buyer blow off the meeting in order to go fishing, or whatever!

A key to getting good service from your Costa Rica realtor is communication. I guess that’s not all that different from dealing with U.S. agents. However, here the deal process is not nearly as organized, or paint by the numbers. There are a lot of nuances about doing a deal in Costa Rica that your realtor can help you with, as long as you keep the lines of communication open.

A good Costa Rica realtor should be one who will basically “hold your hand” all the way to the closing table. Often my buyers will actually make an offer after they’ve already gone home, or will have to go back home shortly after having made one. That means that all the stuff that has to take place for the deal to proceed smoothly to closing will take place in the buyer’s absence. The lawyer you choose will help you with much of that, but the real estate agent should help as well. I always help my clients with things like getting a home inspection from a qualified inspector, with an eye to American construction standards, as well as setting up the survey and many other things.

Murphy’s Law works double time in Costa Rica. Whatever can go wrong in a deal probably will. And when that happens it pays to have a good Costa Rica realtor on the ground to try to resolve those issues. I wrote a post not long ago about Costa Rica real estate deal SNAFU’s. And that post only details a tiny percentage of all the things that can go wrong! Having a good Costa Rica realtor who can help keep the deal moving forward while overcoming the problems that inevitably arise is worth every penny of the commission that you don’t even have to pay him or her!

I realize this post is sounding like an extended rant from a disgruntled Costa Rica realtor. I guess it is in some ways. I got stood up by a buyer just yesterday so the anger still lingers. But above and beyond the sphere of my own emotional difficulties, following the recommendations laid out herein can result in a more successful relationship with your chosen Costa Rica realtor…

One that will be enjoyable (and profitable) for both him/her and you!

Ten Common Costa Rica Real Estate Deal SNAFUs

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Costa Rica Real Estate Deal

The motivation for this post is a deal I just completed that has now been memorialized by the agents involved as the “deal from hell.”

Most of the Costa Rica real estate deal SNAFUs mentioned below were encountered in the course of that deal. The good news is that we were able to get it closed despite them (psst: that’s a pic of the home to the left…don’t let the beauty deceive you).

I thought I’d write this post as a warning as to what you might be faced with doing a Costa Rica real estate deal…

1. Water Issues – It’s not so much that Costa Rica has severe water shortages (although that is true in some areas). It’s that access to a legalized (via water concession) water source is not always guaranteed. In fact, it’s often not the case, especially in the remote jungly and beachy areas that expats like to buy properties in.

So, what do you do about it? Well, it depends on whether or not you want to build and how quickly. The lack of a legal water source is a curable problem, usually, either by drawing from a water course (river or creek) or spring on or near the property, or digging a well. However, getting a concession from the Costa Rica government to do that legally takes time and can turn into a bureaucratic nightmare. And most municipalities these days are requiring a concession as a condition to obtaining a building permit.

Bottom line: Know clearly what the water situation is early on in due diligence.

2. Power of Attorney Issues – More often than not our buyers (and/or sellers) are not present during closing. That means some form of power of attorney will have to be given to someone who can sign for the buyer at closing in Costa Rica. There are various kinds of powers of attorney in Costa Rica and I could write a complete blog post on that topic.

If you are buying through a corporation you’ve set up for that purpose the whole thing is made easier. The attorney will draft a proxy letter that you can simply sign and have notarized in the U.S., then scan and email back. Then the attorney can have the corporation grant a power of attorney to someone in Costa Rica who can sign.

If you’re talking about personally giving a power of attorney to someone within Costa Rica things can get a bit more complicated. If it’s a special power, then you’ll have to have it notarized and then sent off to the Secretary of State for an apostille in order for it to be valid in Costa Rica. However, sometimes closing attorneys can demand a general power. For that you will actually have to go to the nearest Costa Rica consulate in the U.S. (or Canada) and execute it in front of a Costa Rican notary. On top of that, the general power is only valid after being registered in the Costa Rica National Registry. All that can take quite a bit of time and effort.

Bottom line: Know ahead and time what type of power of attorney you’ll need and take steps early on to have it in place well before closing.

3. Transferring Money Issues – This is dealt with more thoroughly in the section below on escrow. Suffice it to say that it can be complicated transferring large amounts of money from another country into Costa Rica. Banks in Costa Rica are required by law to know the source of those funds. This is part of an anti-money laundering law that was put in place some time ago. Most use escrow to deal with this.

4. Setting Up Escrow Issues – As was stated previously, most use escrow to deal with transferring large sums for real estate purchases. However, the process of setting the escrow up is time consuming and most real estate buyers find it overly cumbersome and intrusive.

Bottom Line: Escrow is the way to do a Costa Rica real estate deal and you just have to suck it up and do it they way you’re told. Saying over and over again that “we don’t do things in the U.S. (or Canada) that way” won’t change a thing.

5. Survey Issues – You will usually want to have the current survey updated, especially if it is over 10 years old. And if you’re buying a large tract you might even want to have a completely new survey done. This takes time and can expose boundary discrepancies that can take even more time to remedy.

6. Home Inspection Issues – You will want to have a home inspection done and most areas have decent inspectors who will look at things with an eye to U.S. (or Canada) standards of construction. Your sales and purchase agreement should definitely give you an out (with full return of deposit) if major problems are discovered. Usually the seller is given an amount of time to cure.

Bottom line: The survey and home inspection are key components of your due diligence and you should make sure to take the time to do them correctly and then take the time to cure any problems discovered before closing.

7. Personal Property Title Transfer Issues – Often a vehicle or some other “titled” form of personal property is being purchased along with the real property. Another commonly encountered one is an ATV, since many expats like to use those to get around. These can present title transfer issues that should be dealt with ahead of time so that closing delays are not experienced.

8. Mortgage Cancellation Issues – If a mortgage is held by a third party against the property that person or corporation will be part of the closing. They will have to, of course, be paid and execute a mortgage cancellation in order for clear title to be conveyed. This became a major issue in the “deal from hell” since the mortgage holder was not present at closing and steps had not been taken to make sure someone had a power of attorney to sign on his behalf.

And that brings me to my next SNAFU…

9. Incompetent and/or Lazy Attorney Issues – There are some really good attorneys in Costa Rica. However, there are also some really bad ones. Sure there are the bad ones who operate as crooks. But what I’m getting at here are the ones who neglect to dot the i’s and cross the t’s, either due to incompetence, or laziness, and those failures tend to show up at the closing table in the form of unnecessary and stressful delays.

Bottom line: Stay on top of your attorney to make sure he’s getting it done…at least until you’re sure that he’s in fact getting it done.

10. Getting it All Done on Time Issues – How long does it take to close a deal in Costa Rica? As a general rule due diligence will take around 45 days with another 15 days to pull all the documents together, as well as fully fund escrow with the purchase price, to finally close. However, any SNAFU’s encountered can add considerable time.

It pays to try to avoid surprises by anticipating the potential Costa Rica real estate deal SNAFUs and dealing with them well ahead of the scheduled closing date.

Where Growth is Going in the Costa Rica Southern Zone

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Costa Rica Southern Zone

A while back I published a post on why the growth story is compelling for the Costa Rica southern zone. This post will dig a little deeper into that topic.

According to well-known authorities (meaning, well, me) the southern zone real estate market is divided into three areas: mountains, beaches and the Osa Peninsula. Together they comprise the most untapped major area for growth in Costa Rica, for reasons stated in the above mentioned article.

I’m not going to get into the growth prospects for the Osa Peninsula in this post. I’ll only say that this area, which is “off-the-beaten-path” in every sense of the word, will be slow growing. And that’s primarily because the choice parts of it are highly protected as either national park (as in Corcovado) or some other form, such as private reserve or wildlife refuge. And that’s exactly how it should be since this in the most biologically diverse area of the country and indeed of the entire planet.

Therefore, the areas of focus will be Costa Rica southern zone mountains and beaches. When I refer to “mountains” I am speaking of the Talamancas that tower over the city of San Isidro de El General, which is the second largest city in the country, outside of the metropolitan area of the central valley, known as the GAM. When I refer to “beaches” I am speaking of the renowned area of Costa Rica coastline known as the Costa Ballena, which consists of the well-known beaches of Dominical, Uvita and Ojochal

There is an in-between area, which consists of the coastal range the sits between the valley where San Isidro is located and the coast. This smaller range features communities such as Platanillo and Tinamastes, which have been increasing in popularity and for good reason. Here you can be in the mountains and still have ocean view, not to mention spectacular waterfalls, flora and fauna! For the purposes of this article I will consider this area to be “mountains” as well.

So where is growth going in the Costa Rica southern zone? I believe the answer to that has to be “mountains” for the reasons I will lay out below…

Inventory is Thinning Out at the Beach – A common complaint I am hearing from the hard-core “beach agents” at our weekly Coldwell Banker team meeting is that inventory is getting thin. The beach market has been booming as of late and the 120+ agents down there have been enjoying good times. However, they are fast getting to the point where the “good stuff” has all been recently sold. I sort of had an inkling some time ago that this was going to happen. Will there be new product coming onto the market to fill in the gaps? Yes and No. Sure there’s always going to be some new projects and construction going on, especially when there’s demand for it and there definitely is demand. However, if you read further you’ll see that the Costa Rica government is not all that keen on seeing a lot of real estate development in the southern zone beaches.

The mountain market has lagged behind the beach one. The market here is different. You’ll not find too many million dollar homes up here. First, because it’s primarily a tico market and ticos by and large don’t have the money to build those sorts of homes, nor do they really have any desire to. Secondly, the expats who have built up here tend to be a more humble lot than those you’ll find at the beach. Many are fully content with a tico-style home surrounded by several acres that can become their personal natural playground. Prices are still affordable enough up here in the mountains to make that entirely possible for the average joe expat.

Prices are Getting Higher at the Beach – The strong market demand for ocean view homes and lots at the beach is naturally pushing up prices. And as inventories thin out that will only accelerate. Hey, that’s good old supply and demand, right?

On the other hand, prices in the mountains are low and haven’t seen that much movement, yet. I believe as more expats understand that they can get much more property for their money up here in the mountains, with a better climate and still be less than an hour from the beach, more will forego the ocean view for a breathtaking mountain one.

There’s a Development Crackdown Going On at the Beach – Our southern zone is blessed in many ways and one of those is that we have abundant water. Costa Rica law requires a legal source of water to be in place prior to the issuance of a permit to construct. However, the municipality that controls permits along the Costa Ballena has for past years seen fit to look the other way and issue permits without a legal source established, as long as you could show evidence that one was readily obtainable. That practice has recently stopped dead in its tracks. The municipality is now absolutely and without exception requiring a legal water source to be “in-place” prior to any issuance of building permits for all new construction along the Costa Ballena. So what, you ask? Well, the so-what is that much of that gorgeous ocean view land in the mountains that overlook the Costa Ballena does NOT have a legal source. Is there water? Sure there’s plenty of it, but access to it is not necessarily legal, or to use Costa Rica legalese, it’s not “concessioned.” Here’s a link to an article that explains all that in greater detail.

Why has the municipality all of a sudden gotten so strict? The logical reason is that they want to put the brakes on and control the Costa Rica southern zone beach development. They do not want to see happen here what happened back in the early 2000’s in Guanacaste. That’s a good thing from an environmentalist perspective. It also bodes well for growth in the mountains. Here’s an article where the Costa Rica government recently won a hard-fought case in international arbitration against a developer on the central Pacific coast.

The mountains around San Isidro simply have more infrastructure in place than those overlooking the coast. Chances are if you’re buying in the mountains you already have a legal water source from the community Asada or the AyA, which is basically, city water. And even if you have to get a concession from a spring, creek or dig a well, you won’t face the anti-development hostility that developers are facing along the coast.

San Isidro de El General is Destined to be a Major Costa Rica City – I already mentioned that it’s the second largest outside the GAM. And it is getting bigger and better all the time. I’ve lived in the mountain pueblo known as Quebradas for several years now and I can attest to the growth in new stores and restaurants that seem to open every week in and around the city. And there’s talk of expanding our airport to make it available for international flights. I believe that as San Isidro comes of age, people will begin more and more to take notice of the opportunity in the mountains of the Costa Rica southern zone. Heck, we’ve already got the best 5-star resort in Central America in the mountains just 30 minutes out of town, the Hacienda AltaGracia. Also there are major developments already underway, such as that of the sustainable community, Rise Costa Rica, and the new retreat center, Synergida.

Taking all that into account, I believe the handwriting is on the wall that the place where growth is going in the Costa Rica southern zone in the foreseeable future is without a doubt, mountains.

The good news is that in the Costa Rica southern zone you can live in the highest mountains the country boasts, with a near perfect climate and easy access to a major and beautiful city, and still be less than an hour from the beach!

To explore both beach and mountain real estate opportunities, click here.

Costa Rica Buyer’s Agent versus Seller’s Agent

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Costa Rica Buyer's Agent versus Seller's Agent

After having spent a few years working as a real estate agent in Costa Rica’s southern zone, I’ve started to notice something important. And that is that most agents, especially beach-focused agents, tend to gravitate more towards being seller’s agents than Costa Rica buyer’s agents.

The name of the game for success in real estate in the ultra-competitive beach market is listings, listings, listings. The more and better “exclusive” listings you have the more interest you will attract and the more deals you will close. The agents down there with the most quality listings tend to be the most successful. That’s a winning strategy, no doubt about it. Most quality listings are taken exclusively down at the beach these days. That means that the seller/owner is giving that particular agent an exclusive right to sell his or her home and you can bet your bottom dollar that the listing agent will be working for that seller and not for you.

I’ve always been sort of a rebel. And once again I’m trying to break the mold. For one thing I live in the mountains, even though I’m an agent with Coldwell Banker Dominical Real Estate, the agency down at the beach with the longest and arguably most successful track record. I live only about 40 minutes from the beach office, but since I’m really not part of the beach scene, I don’t try to list properties down there. There are already something like 130 agents working along the beach and it’s just not worthwhile for me to even try and list beach properties. However, I routinely show properties of beach agents to my buyer customers.

I operate under the “MO” of being an unbiased agent/consultant who will expose you to the two very distinct worlds of Costa Rica southern zone mountains and beaches, so that you can make the absolute best choice between them. It even says that right on the home page of my web site!

I guess you could therefore say that I tend to gravitate more towards being a buyer’s agent than a seller’s agent.

What does that even matter, you ask?

Well, I believe it matters greatly to those expat minded folks who want to live in Costa Rica, but don’t quite know where. In that case, the last thing you want is a seller’s agent who is more concerned with selling her listing to you than she is in making sure you are buying into the location that will suit you the best.

Are you catching my drift?

Now, of course, some buyers already know for certain that they want a 2-bedroom home with pool and ocean view on an acre of land in Ojochal. In that case, why not go with the agent who has the most of those exact types of homes that you know you want to buy? I can’t argue with you on that point. You’re probably not my type of customer.

However, there are many wannabe expats who don’t already know all that. And for those guys and gals my unbiased agent/consultant shtick might be the better ticket.

In our area you have this distinct choice of mountains and beaches. They are not the same and don’t let anyone tell you they are. Beach agents do not want you looking around in the mountains and will dissuade you from doing so. Many who have bought down at the beach still don’t even know of the beauty and quality lifestyle that abounds in the mountains only an hour, or less, away.

I am virtually the only mountain agent in our area. As such I would love for you to experience our mountains, which are so close to the most gorgeous coastline Costa Rica has to offer, the Costa Ballena. However, I also won’t hesitate to show you all the beach properties you want to see…

But (and this is a big BUT), I will be doing so as your unbiased Costa Rica buyer’s agent.

I hope you now understand the difference.

Costa Rica Real Estate Terms You Ought to Know

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Costa Rica Real Estate Terms You Ought to Know

Doing a real estate deal in Costa Rica is not so different than what you’re used to back home. However, one aspect that can make it seem so is the terminology. I’ve listed below ten Costa Rica real estate terms you ought to know. You will probably hear most of them during the course of your real estate activity in Costa Rica. Some are simply Spanish translations of concepts you’re already probably quite familiar with.

1. Escritura

My clients always ask me if they will get a deed to the property at closing. In the U.S. the “deed” is the legal instrument that grants title to a property from the grantor (seller) to the grantee (buyer). In Costa Rica it works a little differently.

The legal mechanism in Costa Rica for transferring title is known as the Escritura. It is the most important document you will sign at the closing. It is the document that will be recorded in the National Registry, so it must be in Spanish. The closing attorney, acting as a Costa Rican notary, has responsibility for drafting, executing and recording the Escritura. He will also translate the document to the buyer, verbally in English, at closing. The Escritura doesn’t include “magical language” as does our U.S. deed. It simply lays out the full detail of the transaction, including any mortgage or lease-back that might be involved. For that reason, it can be a very long document and the major (and most boring) time spent at closing will be having the attorney translate it into English.

2. Water Concession

In Costa Rica all water rights belong to the government and are held for the benefit of the public. And that includes water flowing across or bordering the property you are purchasing. In order for you to have the right to draw water from a source, either on or off you property, you must have a water concession. Usually in order to obtain a permit to build on your property, you will have to show access to a legal (or concessioned) source of water, or at least the ability to tap into a metered source (more on that with the term Asada below).

Concessions are not necessarily hard to obtain, but they are time consuming. It can take up to a year to get one. What can you do in the meantime? Well, you can use the water source available to you without one, it just won’t be legal. In some municipalities, you can obtain a building permit without a concession, as long as you can show that you have access to a water source that ultimately can be concessioned. In other municipalities, you can’t build until you have the concession. It pays to know what you’re up against in this regard.

Always make it an item for due diligence to firmly establish what your water sources are and if they are legally concessioned sources.

3. Maritime Zone

In Costa Rica there is a law that has been around since the 70’s known as the Maritime Zone law. It is the major area of law in which Costa Ricans are favored over foreigners when it comes to property rights and ownership. The Maritime Zone is defined as the 200 meters from the high tide mark. The first 50 meters is public property. You cannot stop anyone from walking down the beach and accessing the ocean in front of your property. The next 150 meters can be “concessioned.” Here’s another use for that term, albeit a different one than the water concession noted above.

A Maritime Zone “concession” is basically a lease from the government, meaning the municipality where the property is located. It is normally granted for 20 years. There are costs involved, including an annual fee. If you misuse the concession, or fail to pay required fees, then you are in danger of losing the concession. If you have improved the area under concession and lose the right to it, you will also lose the investment in those improvements. Concessions are routinely renewed, but they don’t have to be.

Another thing about concessions is that they can only be granted to nationals, i.e., ticos, or to corporations for which a majority of the shares are owned by nationals. My understanding is that permanent residents of Costa Rica can also be granted concessions, if they have lived in the country for at least 5 years.

In short, investment in a property within the Maritime Zone is risky. It is usually reserved for commercial projects with a reasonably high reward to risk ratio.

4. The SPA (Sales and Purchase Agreement)

Generally offers are made via a very informal letter of intent, often drafted by the real estate agent. However, once fully signed, the letter of intent will quickly be replaced by a more formal contract, which will be drafted by counsel. The is the Sales and Purchase Agreement, which is more commonly referred to in the biz as the SPA. It is drafted in English if the parties communicate in that language. It is never recorded, so does not need to be in Spanish. It will contain similar terms as do typical real estate contracts in the U.S.

5. Servidumbre

Servidumbre is simply the Spanish translation for easement and is legally defined much in the same manner as an easement on property in the U.S. There are many types of easements, such as rights of way, view, easements to power companies for maintenance of lines and equipment, etc., etc. A particular easement you are very likely to come across is known as the servidumbre agricola, or agricultural easement. It is law in Costa Rica that when a farm is subdivided, interior lots are automatically granted easements of access across lots adjoining public roads.

You can find out what easements burden the property you are purchasing by a search of the National Registry and by review of your Plano Catastrado (see below). This is something your attorney should do for you in the course of your due diligence.

6. Plano Catastrado

This is the Spanish name for survey in Costa Rica. It is very important to ask for and review carefully the plano for the property you are purchasing. I recently had a situation in which the very astute buyer I was representing noticed that the property he had been shown was outside of the border of the plano for the property. He noticed the discrepancy by overlaying the plano onto a Google Earth map. It was not my listing, but another agent’s. Nevertheless, I had a hard time believing what the buyer was telling me. After sending a surveyor out to re-measure the lines, we discovered that the buyer was absolutely right. Needless to say, that deal cratered.

7. Proxy Letter

Many times buyers and sellers cannot be present for closings in Costa Rica. In that case a power of attorney must be issued to someone in Costa Rica who can sign for the non-present buyer or seller at closing. Getting a power of attorney executed in the U.S. that will be valid for use in Costa Rica can be difficult. You will have to have it notarized and then apostilled. A way around this is known as the “proxy letter.” If you have set up a corporation in Costa Rica to take title to the property, a proxy letter can be signed that basically authorizes the corporation to grant a power of attorney to someone in Costa Rica to sign for you. Execution of the proxy letter outside of Costa Rica is a much simpler process and only requires a notarized signature, but not the apostille. The use of proxy letters is very common in Costa Rica real estate closings.

8. Uso de Suelo

Many buyers are looking for properties in areas where there is no municipal zoning laws or regulations in effect. Sometimes they want to develop the property commercially, but there is no guarantee if such use is allowed. That’s where the “uso de suelo” comes in. It will be granted by the municipality where the property is located and will tell you, in very general terms, what use can be made of the property. It will also tell you things like what the setbacks are from water courses shown on the registered plano.

The uso de suelo can also serve as insurance against problems down the road. Development of land can get political in Costa Rica. If the use you want to make may be in competition with someone else’s project, especially a politically powerful someone else, you might have problems getting permits later on. Having the uso de suelo in place early on is a good way to guard against such problems.

9. Asada

In rural areas of Costa Rica, the public water supply for a given community is controlled and regulated by the local Asada. If you want to tap into this “metered” water source, you have to deal with the Asada. Many times properties will both utilize the Asada as a water source for human consumption, as well as sources located on the property itself for animals and irrigation.

10. Hectare

If you’re going to purchase property in Costa Rica you need to get familiar with the metric system, at least the part of it that most often applies to real estate. The metric term you will probably hear most often is the hectare. A hectare, or hectarea in Spanish, is approximately 2.5 acres. It consists of 10,000 square meters, whereas an acre is approximately 4,000. Visually, you can picture in your mind a hectare as being roughly equivalent in size to a regulation soccer field. When dealing with large farms in rural areas, you also might come across the term “manzana”, which consists of just under 7,000 square meters. Dimensions of homes in Costa Rica might be stated in square meters, rather than square feet. So, it pays to know that a square meter is 10.8 square feet.

There certainly are other and more exotic terms that you might come across in Costa Rica. However, knowing the above ten is definitely a good start.

Costa Rica Real Estate Financing Your Purchase

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Costa Rica Real Estate Financing

There’s a corny joke about getting rich in Costa Rica. It goes like this…

Hey, wanna know how to become a millionaire in Costa Rica?

Yea how?

Bring 2 with you…

badum tish.

There is some reality to that. Because if you want to do something in Costa Rica, like start a business, or buy some real estate, you’d better bring plenty of cash.

I get asked often about Costa Rica real estate financing. Is it available? Well, if you’re asking me if you can come fresh to Costa Rica, find that perfect home, and then walk into a Costa Rican bank and get a mortgage to purchase it, the answer is a resounding no!

After all, one of the key principles for bank lending is to know your customer, right? And how in the world is that Costa Rican bank going to know anything about you? You don’t have any history in Costa Rica. Certainly no credit history, but beyond that no history whatsoever. You could be an international terrorist!

Of course, I’m being a tad facetious, but I believe you know what I mean. In order to get a mortgage from a Costa Rican bank you first have to become a resident. You have to at least have that much tie into the country for a bank here to even remotely consider it. Costa Rican banks are more risk adverse than banks in the U.S. There really is no established mortgage market here. Yes, banks do grant mortgages to citizens and even to residents, but on terms that are harsher than what you’re used to back in the U.S. And with more frustrating bureaucratic hoops to jump through.

Many folks these days are getting residency via the purchase of Costa Rica real estate. It “only” takes a $200,000 investment and snap you’re a resident, along with your spouse and any minor kids you bring with you. The problem with that is you have to buy the home first. And with what? The answer generally is with cash.

Buying with Cash

Cash is king in the Costa Rica real estate market. Most deals are done with it. That almost always entails setting up an escrow account in Costa Rica to receive the funds for the purchase. That’s because Costa Rican banks will neither allow you to waltz in as a foreigner and open a bank account to receive a $200,000 wire in order to purchase your home. And you certainly can’t just bring the money with you in a suitcase. I guess that’s what drug-dealers do, but I’d sort of advise caution against it. The escrow account is your solution. Setting one up can be a bit painful as the escrow company will ask for documents that prove where the money came from, as well as exactly who you are. Remember, know your customer applies here too.

An all cash deal is also the best way to get the best deal. Costa Rica real estate prices can have a lot of room to negotiate factored in. And the best way to put yourself in the best negotiating position is via an all cash offer. Discounts from asking price of 10%, or even larger, are not uncommon.

So, the best and most straightforward way to do a deal in Costa Rica is with cash. But what if you don’t have that much sitting in a U.S. bank account waiting to be used for Costa Rica real estate financing?

Well, there are some options…

Using IRA Funds

This can get a little complicated and I have written on this topic before. But you certainly can use IRA funds. There is no restriction against an IRA investing in foreign real estate. It will have to be a self-directed IRA. The normal IRA or 401K that you might have invested in stocks and bonds probably won’t cut it. You’ll have to roll that money over into one that is self-directed and that has a custodian familiar with using an IRA to purchase foreign real estate. The other big issue with doing it this way is that you won’t be able to use the property personally. It has to be “investment use only”, at least until you reach retirement age. This type of transaction can work well for someone post retirement, or nearing retirement and who wants to rent the home out for a few years.

Leveraging Home-Based Assets

I just did a deal where the buyer used a home equity loan against her U.S. condo. This is certainly a way to do it, if your bank in the U.S. will go for it.

Seller Financing

Seller financing on a Costa Rica real estate purchase is always potentially available. Most of the time sellers won’t come right out and offer it. But it could be part of a negotiated transaction. Usually seller financing will only be available for a relatively small percentage of the overall deal. It seems the maximum amount usually available is around 50% and more often seller financing is a smaller percentage. I’ve done many deals where the financing has been to close a small gap between what the buyers had available and what the ultimate acceptable price ended up being.

For instance, I sold a home last year with an asking of $325,000. The buyers offered $300,000, but with only $250,000 at close and the balance on a 2-year note. Terms for seller financing are usually relatively short, less than 5 years. Interest rates vary, but seem to usually fall within the 5 to 8% range.

So, yes, if you’re somewhat short of the amount you need to buy the property you want, seller financing could help you bridge the gap. The seller is likely to want to know exactly where the rest of the money will be coming from!

Rent While Obtaining Residency

Renting a home before buying can be a good idea. Some folks who aren’t sure where they want to live in Costa Rica will rent in multiple areas to get a feel for them. If you have another way of obtaining residency, like a pension from your job back home, you can start the process while renting. Once you have your residency, you just might be able to walk into a Costa Rican bank and get a mortgage.

It goes without saying that the easiest and most straightforward way to engage in Costa Rica real estate financing is to use cash, perhaps with limited seller financing. That’s the way most deals are done. However, there are some creative end arounds, such as those discussed briefly above, that might be available to you.

The Mysteries of Costa Rica Real Estate Pricing Unraveled

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Costa Rica Real Estate Pricing

Valuation is an art, not a science. That rings especially true in Costa Rica.

Before I ended up as a Costa Rica real estate agent…well, even going a bit further back than that…I was a business valuation consultant, as well as M&A dealmaker. I still remember a thing or two about valuing operating businesses. Granted, I never got into valuing real estate, which is another animal, if not completely all-together…

There are similarities. You generally value a property, be it an operating business or a real estate asset, based on its income, its replacement cost, on actual sales of comparable assets, or some weighted combination of those three methodologies. However, when it comes to Costa Rica real estate pricing, all three tend to break down, with the last one, valuation based on comparable sales, only recently becoming a bit more reliable.

Income-based valuations require reliable financial data. Such data is rarely available in Costa Rica. Owners of properties in Costa Rica just don’t have the “anal retentive” qualities that lend towards generating good hard data one can rely on. Remember this is the land of laid-back and pura vida! No one really pays income taxes down here, so tax returns are completely unreliable. The accounting profession down here is not up to the standards of either the U.S., or Canada. You can pretty much walk into any accountant’s office and get them to “certify” anything you ask them to. Now, if one is adept at evaluating a property based on discounting projected income, then that’s one way to do it. However, most aren’t and of course projections are what they are. The rarely tend to come through to fruition, especially in Costa Rica.

The replacement method is what many property owners want would-be buyers to focus on. I don’t know how many times I’ve heard the complaint that the price offered is not nearly what the owner has put into the property. Well, the problem is that a property is not necessarily worth what an owner invested in it…it’s worth what the market will pay at a given point in time. And it’s very easy to over-invest in Costa Rica. Property owners often get a bit ahead of themselves with their ideas and end up building something that no one would want to buy at anywhere near the price the owner put into it. Then when someone does come along offering a highly discounted price, you get the aforementioned complaint. It’s just not a reliable way to look at value down here, generally.

Finally you have comparable sales. Nowadays, our informal MLS has developed to the point where there actually is hard data on past sales. The problem is that this data is invisible to would-be buyers. The ones who possess that information are the real estate agents. And that is one reason among many why having a good real estate agent to help you in your property sale or purchase is a very good idea in Costa Rica. I know that sounds self-serving, coming from an agent. But it’s true.

I get the comment all the time from buyers that prices are “all over the board” down here. And that is absolutely correct.

I went out the other day to look at a couple of properties owned by a Costa Rican couple now living in the U.S. Both were nice properties. One was a commercial building and the other a very nice home. I wanted to list them. However, once I heard the prices they were willing to list them at, I backed off. I am not going to waste my time listing something at a price that no one in his or her right mind would pay for a property. So, why do some owners grossly over-price their properties? Well, partly because of their focus on “replacement” value and partly because of a lack of good information.

It’s best not to assume anything when it comes to Costa Rica real estate pricing.

If you come here with a firm budget in mind, don’t be shy to look at properties north of that budget. There’s a good chance that there’s plenty of give in those prices. You might be able to buy a property priced at, say, $500,000 for $400,000, which would be a 20% discount! I know that’s pretty much unheard of up north, but down here it’s really not that uncommon. By the same token it’s best not to come to Costa Rica with the idea of “stealing” a property either. The frontier days when gringos would come down and buy huge farms for pennies on the dollar from clueless Costa Ricans is over. In fact, it’s beginning to go the other way now. I’ve noticed that Costa Ricans are the ones who tend to grossly overprice their properties, hoping to cash in on the foreign investment wave that has swept the country in the last decade.

I should say something about the lingering effects of the 2008 crash. Yes, that world-wide economic event did have its effect in Costa Rica. Before it happened the speculative bubble had inflated to unreasonable proportions, especially in hot areas like the “gold coast” of Guanacaste. That bubble did burst, but a decade later it’s gradually beginning to inflate again. I would describe the current market, at least the one I operate in, the Southern Zone, as in transition from buyers’ to sellers’ market. There are some areas where prices are already on the rise. Those are popular beach areas like Ojochal. In the mountains, less then an hour from the coast, the market has been slower to rebound.

The Costa Rica real estate market may no longer be the “frontier” that it was back in the good ole days of not so long ago. However, it’s still one in which pricing is certainly more of an art than a science.

This post probably has not met the challenge of its title in terms of “unraveling” Costa Rica real estate pricing. But I hope it has at least served to clear up the muddy waters and give you a bit more visibility.

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