I recently received an email from a European gentleman who had heard that sometimes a Costa Rican real estate seller will raise the sales price for their home when a foreigner or gringo comes to look at it.
Now I know this may be illegal in some parts of the world but it’s not here and once in a while, it does happen… But here’s why it happens?
The average salary in the USA, Canada and Europe is significantly higher (probably six times higher) than a comparable salary in Costa Rica where for example a public school teacher with 30 years experience makes less than $1,500 a month.
So since Ticos know this it’s not that surprising when the occasional Costa Rican real estate owner asks more for his property when a “foreigner or gringo” wants to buy it, than he would if another Tico (Costa Rican) wanted to buy it? The Tico thinks that all the gringos are rich and therefore I’ll raise my price a little and see what happens…
Let’s not forget that the house will only sell for a certain price if someone is willing to buy it for that price? And if you were in the market to sell your own home and thought that it was worth $100K but wanted more and asked $150K for it..
If someone offers you $150K are you going to turn them down?
Of course not… If a buyer willingly pays the price that you’re asking for your property, what’s the problem? Nobody is forcing them to buy your property at that price…
Whatever piece of Costa Rica real estate you plan on buying, you must do your homework! Unless you know the Costa Rica real estate market intimately, you need to make sure you’re dealing with professionals who do know the local market.
The bottom line is simple… If you don’t think the price is right, don’t buy it! Say ‘Adios!’ and move on to the next property… There’s no shortage of beautiful properties for sale in Costa Rica.
Written by Scott Oliver, author of 1: How To Buy Costa Rica Real Estate Without Losing Your Camisa, 2: Costa Rica’s Guide To Making Money Offshore and 3. ¿Cómo Comprar Bienes Raíces en Costa Rica, Sin Perder Su Camisa?
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