Hello Everyone,

Many of you have bought property or are looking to buy property in Costa Rica. When a real estate professional is involved in the transaction they will make money.

The question is how should they get paid?

Since there are no regulations or an organized MLS system in Costa Rica, the real estate agent has no standard payment protection for their business. This can lead to some unsavory practices.

First, it is important to note that your real estate agent in Costa Rica has a much more difficult task than their counterparts in North America.

Finding properties to market is their first challenge. Without a MLS, the agents must cultivate their own listings. Next, the agent must market to and communicate with buyers who may not be familiar with Costa Rica. This step can take up to a year to familiarize a potential client with the laws and characteristics of a given area.

Only when the client comes to Costa Rica does the agent take on the traditional role of showing their listings. If the buyer is interested in a home the agent then leads them through the maze of red tape to protect the buyer during their closing. Finally, a good agent will translate everything and help the client establish utilities for the property, bank accounts, post office boxes, and all transitional needs.

I think we can all agree this person deserves to be paid for these services, perhaps more so than the agent in the US simply showing an MLS property.

There are two main ways agents get paid when they sell a home in Costa Rica - the ‘mark-up’ approach and the ‘commission’ approach.

It is not uncommon for a Tico seller to say to an agent “This is what I want for my property and anything you can collect over that price is yours”. The seller is actually in agreement in the ‘mark-up’ of their property. You don’t have to be a genius to imagine the problems that occur with this method.

You may see the same property listed for different prices on multiple sites. Sometimes the mark-up exceeds 50% - 100% of the actual asking price. The agents that use this method are not looking out for the seller and they certainly are not looking out for the buyer. It is a lose/lose situation for everyone but the agent. Also, the seller may need to sell the property and it is not doing him any favors by marketing the home at twice the asking price.

Luckily the agents who use this method are in the minority. These agents make a quick buck but also make two enemies with each sale, unless all of the parties are in agreement with the agent making such a huge fee. Usually in these cases the agent’s take is not reported to either party. Even though word travels quickly about these brokers, unsuspecting clients arrive in Costa Rica every day for these agents to prey on.

The “Board of Real Estate Brokers” is the only government recognized association in Costa Rica. They prohibit the practice of “sobre precio” or “net pricing” which has been described here as ‘mark-up’ pricing. It is their recommendation that their brokers charge 13% commission.

You are probably thinking 13% - that is crazy! I’m not paying that. Well it is a bit high, but these brokers have a code of sharing as opposed to the cut-throat methods of brokers that try to hide their fee.

The most common way that agents get paid is a sliding scale commission method. This method is based on price and primarily used by buyer agents. After all, your agent should be representing and protecting you, the buyer.

The sliding scale is based on price and is as follows:
Commission Rates Scale:
Purchase Price Rate
$1.00 - $100,000 10%
$101,000 - $200,000 9%
$201,000 - $300,000 8%
$301,000 - $400,000 7%
$401,000 - $500,000 6%
Over $500,000 5%

Honest agents will market properties at their actual asking price and notify the buyer of their commission. Also, these agents should state in their marketing of a home if the seller has agreed to pay a seller commission. In the case that the seller has agreed to pay a 5% commission, then the buyer will only be responsible for the amount on the sliding scale minus this 5%.

For example: If you buy your dream home for $200,000 from a seller paying a 5% commission to the agent, then you would only be responsible for 4% or $8,000. Your total cost would be $208,000.

Some buyers from North America and elsewhere are not used to having to pay more on top of the negotiated purchase price. However, you should be aware that no matter how the sale is structured only one person is paying the agent’s commission and that is you, the buyer.

The alternative may be an agent asking $250,000 for the same property and not disclosing anything. When you negotiate the price down to $235,000 you may feel that you did well in the deal, but clearly the agent is the only one who did well in this example.

You should always have an experienced real estate professional represent your interests when buying a property. Just be sure to ask – How do you get paid?

Good Luck! Pura Vida!

No offense, Jeff, but I, for one, would not want to deal with such as you. How can you all possibly think that you have justified charging on both ends of the deal? Are you sure that you aren't some kind of lawyer (OK, bottom feeders, jump in here)? If I was either a buyer or a seller, I'd be suspicious. How could I believe that you are working for me as either party, when it is clear that you are playing both ends against the middle, with you realtors being the middle?
Thanks all the same, but I will stick to the CR that I know, where I will find what I want as either a seller or a buyer, through my Tico contacts, and make sure that my CR lawyer represents MY interests in the deal.

OMG! Now that's just funny!

Folks, I pray none of you buy that bs. I am in process of negotiating the purchase of a house found through a Tico real rstate broker. Our contract states _very_clearly_ that the _seller_ is responsible for _all_ fees due to the real estate broker. I frankly don't care if it is $1.00 or 99%. That deal is between the broker and the seller.


Make sure this phrase is in your offer to purchase:

"La comission de bienes raices sera pagada por el VENDEDOR."


Meanwhile we have decided how much we are willing to pay and when negotiations (we are in our third round of counteroffers) no longer meet our price we will remove our offer and place an offer on a different place with the owner.

Do yourself a favor. Go look at at least 5-10 places. Measure the boundary line of the property and the outside walls of the house. Figure out what the square footage or sguare meters is of both the house and property.

Do the arethmitic on at least the square foot and/or square meter value of the house is. If the houses you are looking at are of similar quality then make an offer on the one with the lowest square foot/meter ratio with the ratio that you feel is fair to YOU, not to the broker.

For instance we have been looking at places that range from $300/M2 to $1,400/M2. We are in the middle of a transaction that we are willing to pay no more than $400/m2. If and when I feel that the owner and/or broker just will not meet my price ratio I will walk away and start bidding on number 2 on our list. No big deal.


Also: You should ALWAYS have an EXPERIENCED real estate LAWYER who ONLY represent YOUR interests when buying a property. You should also be convinced beyond any shadow of a doubt that this lawyer is based in San Jose and will personally go to the registro nacional and thoroughly comb the books related to your property to assure that there are no liens or encumbrances. If s/he says they can just do it online get up and leave and find another lawyer.

Hello Everyone,

No offense taken! I'm glad that you found good people to represent your deals.

I knew this would draw some conversation and some controversy. The main point that I failed to make is that the scale is what is used Primarily with buyer agents that also facilitate transitional services.

There are many people using the mark-up method and people need to be informed that this does happen and that they need to ask how their agent is getting paid.

Of course everything should be clearly stated in the purchase contract. And certainly a good lawyer is imperative to handle every purchase. Also, I would suggest that every buyer request to speak to the seller directly about price and terms and if the agent is hesitent to make that happen then you may have a problem. The agent should have nothing to hide.

Further, some sellers do not offer a seller commission. The buyer needs to be notified when such a house exists and the buyer is charged the 5% commission.

I apologize if I offended the honest agents who work with a code of ethics that work off of a shared 5% seller commission. This was not my intent.

Good Luck!

I can't believe no one is mentioning that if you seek out a Realtor who is a member of the Camara Costaricense de Bienes Raices, then you will have a legal recourse if that realtor is not completely honorable in his practices. Not to mention that this is the only recognized organization in Costa Rica that regulates the action of it's member agents. Why would anyone risk using a pig in a poke (so to speak) when they can just look for recognized CCRBR members in good standing. Not to mention they have been educated in the practice of real estate and ethics and law etc.

Camara Costarricense de Corredores de Bienes Raices.

This is an association. They provide memberships, but cannot issue Official R/E
licenses.
No real legal jurisdictions to my knowledge.. correct me if I am wrong...

I beg to disagree. As I understand it there is no law guiding the ethics of people who sell real estate in Costa Rica. None!

As AG said the organization you refer to is just a group of people who make some claims. There is nothing legally requiring them to act as they say they will.

Your only "safe" recourse here is to have a great lawyer and for you to listen to him/her every step of the way.

Might I add that I am a REALTOR in the US (Florida). That is the only board that actually has an ethics policy that you need to abide by. The CCRBR does not have 'an ethics code'. I could probably say there are only about 10 or so agents in all of Costa Rica who are members of NAR (National Association of Realtors) and are licensed in a state in the USA. I never charge mark up the properites I sell to benefit myself. That is considered illegal (in this case you are only screwing the buyer and definitely not looking out for his/her best interests). Typical buyer agent commissions are 5% to the buyer unless they are higher priced properties (as stated above). At least that is what I have been used to at the beach. Believe it or not, there are some Agents, present company included, that do a great service for my clients. My last client who purchased a property through me: I handled all the contracts, closings, hooking up the electric to his name (it was a new construction), went shopping with my client for furniture, etc. I always aim to go above and beyond because that is what I feel I am paid to do--provide outstanding service.

Lawyers, Lawyers, Lawyers........but find the right one. The is only one Law firm elected to Officially facilitate the purchase of a Real Estate between a Costa Rican and a foreignor.....However I will say that this is a third world country and their ducks are not all in a row. The BEST thing to do when purchasing is to involve a Reputable Title Company. Due to the rules of this website I will not post their information. However, you will recognize the name when you find one. And of course the title company will do a complete search to make your land purchase safe.

As for the Money situation......the market is flooded with so many organizations......I associate my development with reputable companies to gain more exposure and you will not see a change in price from my site or theirs. I simply have a commission structure that I offer other companies and it is the seller's responsibility to provide these comissions.......take it or leave it is my motto when dealing with third parties. If you like the "third party" and want to help them with their comissions simply look for that same property on other websites..... Try to find the source. You can get a lawyer involved to find this information but you will need the "Folio#". If a company is not willing to give you a Folio # then more than likely they are "marking up prices". Their is a lot of them but it is necessary to find out if that company is reputable and honest. My experience lately is has been that most "third party" MLS companies do not use the "mark up strategy". Your biggest dangers are companies who have not received all the necessary "stamps" to make a document legal. Like I said GET TITLE INSURANCE.

The problem with this country is simply growth. The Government cannot keep up with the developers demands to make their lands legal to sell or subdivide. It just simply takes to long for all the different municipalities to "approve" everything. Some of the smaller towns are still using file systems!! This causes major developers to "pay off" or develop with out permission. I will quote what one developer admitted to in the Tico Times: "It's better to ask for forgiveness than to ask for permission".

I hope this information has helped everyone. Then again, who am I and how can you trust me........I'm a Realtor......but a reputable realtor from the US and CR. I invite you to research the above information.......Actually, I request that you do so if you are truly interested in investing in on of the top five foreign real estate markets.

I see this a lot, but there is something wrong in this advise I think. As you all know, I am not a realtor, but I DO know that title insurance in Costa Rica is really a sham (and many believe to be questionably legal).

The government of Costa Rica guarantees all titles here, so third party title insurance is just a waste of money.

Saying that, the largest title company here may provide valuable assistance in financing... but for the insurance itself? Why waste big bucks?

TG

My “perception” is that realtors exist in Costa Rica primarily to meet the expectations of the uninformed American consumer. Americans are conditioned to think that they NEED a realtor to assist in the purchase of real estate because that is the mechanism we have back in the states to handle these transactions.

What you absolutely do need here is a good attorney to represent your interests. In my humble opinion, if you have a good attorney, one that is experienced in real estate transactions to represent your interests, then the real estate agent is more or less redundant. The government does not regulate the real estate agencies because here the custom and practice in Costa Rica is to rely on attorneys (not realitors) to process these transactions.

Personally, I have a hard time understanding exactly what service a real estate agent can perform for you here in Costa Rica that you can not do for your self with the aid of a knowledgeable taxi driver or a Tico friend that knows the community.

The nice thing about attorneys is they charge by the hour rather the sliding percetage scale that our friend CRFirst is promoting for his business.

To Kahuna (and, with all respect to Mediatica) may I just say, "Amen!" I couldn't agree more. For my purposes (I am not a business person, and have no intention of being one when I get to CR - we're just lookin' to be pensionados) a Tico friend or two, and our CR banker, along with a Tico lawyer are more than adequate to make us feel safe in any major transaction involving property.

U are so right. I found my home through my manicurist who knew a house for sale... My attorney handled it all... If you looked on a realtors web site my house was found to be 50 to 70,000. more...

The thing about common sense today is that it ain't very common anymore. Use a good attorney and have good Tico friends...

I am looking for property on the atlantic coast (Puerto Viejo area) and while there last time met an american, working as a real state agent, that showed me a property or two and is looking for others while I am getting prepared to return. If she finds one, and I buy it, I would gladly pay her a commision, but we have no contract to do so. I certainly can look for myself apon my return, but obviously, getting a good lawyer is of the utmost importance. My question is.... How do I find one? Who can I trust for a recommendation?, and is there a reliable database of lawyers with a track record ??? thanks for your help

The best suggestion that I can give is to give your self some time and not be in too big of a hurry. Focus on building a life before building a house. You can make friends here! If you make the effort, it will be reciprocated. I think of hiring a realtor as "rent-a-friend". It is an expensive short cut that will not lead to integration into a community. Who needs that when there is a better alternative?

Take baby steps; build a network of people that you trust first before making ANY major purchases. Shopping is fine, but don't buy until you have your network in place to the point where you feel 100% comfortable.

A house is just a house and there is lots of property for sale. Focus on friends first and the rest will take care of itself. Relax and enjoy life. Living is good here. Pura Vida Sister .........

Kahuna,

What a great summation of how to settle in to living in Costa Rica.

Halla-Loo!

Paul M.
==

Thanks Paul for the comment,

I am curious as to why none of our realtor friends have not chimed in at this point. If there is something I am missing I would sure like to know.

CRFirst started this thread, where did he go?

I think that is one of the things that irritates me most about the We Love Costa Rica group. Granted, they do provide a lot of good information, but their entire business is predicated on the fact that people come here and they don't understand that the system is entirely different than what they are used to. People assume that they need a realtor, when they really don't. All of their promotional literature, including the book that they present to the public as an objective text book (which it most certainly is not), reiterates over and over again that they are the only ones that you can trust in Costa Rica when making a real estate purchase. They manage to find fault with virtually everyone outside their little circle. However the reality that they fail to disclose is that their services are directly aimed at a market of people that don't understand that attorneys are fundimental to processing real estate transactions in Costa Rica, not realtors. My perception is that not only do they feed off of this fundimental missunderstanding, they in fact perpetuate it. With all due respect to my friend CRFirst, whom I assume is an honest and well meaning individual, the whole way they market themselves just rubs me the wrong way. I find their entire presentation intellectually dishonest.

If I have that wrong, I would love for someone to set the record straight and I will humbly offer up my apologies.

I was also appalled at the method CRFirst proposes as the way Realtors make money. It just does not work that way, in the US or CR. As a new buyer in the CR market, lots of research is required to prevent mistakes. The seller (not the buyer) pays commission to the realtor for finding the buyer and obtaining an offer, with percentages lower than what CRFirst promotes, at least in my experience. If the buyer believes the "listing price" is padded, then a lower offer can be made.

I believe the main reasons a buyer may need a realtor is to help locate a product the client is interested in, and narrow down the areas (location) the client is interested in, perhaps recommend an attorney to complete the transaction. A title company may or may not be utilized, but a trustworthy attorney is essential. A "RECIPROCAL PROMISE TO BUY AND SELL" contract can be used, with the minimum information for example:

Description of the Parties may include passport or cedula numbers:

Between us, ____________ the "Buyer(s)", and ________the “Seller(s)” have agreed to enter into the following Reciprocal Promise to Buy and Sell which shall be governed by the legislation of the Republic of Costa Rica and in particular according to the following clauses.

FIRST: Legal Description of the Property. The SELLER is the owner of property which is recorded in the National Public Registry as follows:
Description of the property: __________________________ (Name of Finca or Lot Number and possibly a Cedula Number)
Province: ________ Canton: ______ District: _______
Registered Property Number: A-123456-2002
Matricula 987654-000 Folio Real 7878787-000
Additional Property: (if applicable)

SECOND: Size and Property Survey Map. SELLER manifests that the property measurement is _____m2. SELLER agrees to provide to the BUYER a copy of the property survey map within ___ days from the signature of this agreement.

THIRD: The Reciprocal Promise. The SELLER hereby agrees to sell and the BUYER agrees to buy the PROPERTY described above, free from any liens, encumbrances, annotations and with municipal and property taxes paid to date.

FOURTH: The Sales Price. The sales price for the property is [$ ________ U.S.]

FIFTH: Earnest Money Deposit and Payment Schedule. The BUYER tenders a non-refundable earnest money deposit of $_____U.S. on or before (date).
Deposit will be held in escrow with seller’s attorney until closing.

SIXTH: Closing. The balance of the purchase price of [$________U.S.] shall be disbursed to the SELLER at closing when the property transfer deed is signed. The closing shall take place on or before (date).

SEVENTH: Conditions: Liens and Encumbrances. At the time of closing the property shall be free from any liens, encumbrances, and annotations of any kind. The property title report must show no annotations or liens (gravamenes) of any kind. It shall be the responsibility of the SELLER to clean and or lift off the title report any and all annotations.

EIGHTH: Transfer of the Property. The BUYER shall disburse the funds and remaining balance of the purchase price indicated above to the SELLER simultaneously upon the signing of the property transfer deed (escritura de traspaso) transferring title from the SELLER to the BUYER or their corporation.

NINTH: Property Taxes and Utilities. The SELLER must provide the following documentation at the time of closing: (a) Certification issued by the Municipal authorities indicating that the SELLER is current in any municipal and property tax payments. ( Copy of any filings with the Municipal government related to property valuation for property tax purposes (Declaración de Bienes Inmuebles).

TENTH: Assignment to a Corporation. (if applicable)

ELEVENTH: Association Dues. Monthly association dues (if applicable) will be $___ per month, payable to ____________.

TWELFTH: Closing Costs. All closing costs related to the property sale are to be split 50% - 50% between the seller and the buyer.

THIRTEENTH: Real Estate Commission. (can be dollars, or percentage of sales price, and separate from the closing costs above)

FOURTEENTH: Modifications. Any modifications to the terms and conditions set forth in this contract must be in writing and signed by both parties.

FIFTEENTH: Jurisdiction. The parties agree that the laws of Costa Rica shall be applicable to all matters related to this contract and they waive their domicile and submit to the laws of Costa Rica.

SIXTEENTH: Estimation. The parties estimate the value of this contract in the sum of $__________ U.S.

SEVENTEENTH: Contractual Address for the Parties. Any notices and communication regarding this contract shall be in writing and delivered to the following address:
SELLER: _______________________
BUYER: ______________________________

EIGHTEENTH: Public Instrument and Translation. Both parties have requested that the following contract be drafted in the (English) language since this is the language they read and understand. Either party may have this agreement elevated to a Public Instrument by having it translated into Spanish by either an official translator of the Ministry of Foreign Relations or a Notary Public of their choice pursuant to the regulations of the Costa Rican Notary Code. In agreement with each and every clause of this Reciprocal Promise to Buy and Sell we sign in duplicate. At ____ hours, on this ___ day of _____ month, OF TWO THOUSAND AND SEVEN.

SIGNATURES OF BUYERS ____________________________ SIGNATURES OF SELLERS ____________________________

Unfortunately, buyers from outside CR may have limited time to get all of this done on one or two trips. People tend to get in a hurry so they don't *Miss* a good *Deal*. The advise from Kahuna is golden... "Take baby steps; build a network of people that you trust first before making ANY major purchases".

Obviously, it is important to get all of these details right, double check all the numbers, and verify the translation to Spanish is correct. Then Pura Vida.

GreciaBound

I am puzzeled by this statement. In what manner is The “Board of Real Estate Brokers” recognized by the governemnt? I would like an explanation.

I am sorry to see that our friend CRFirst has run away from the discussion. I was looking forward to one of his thoughtful replies.

Kahuna, Grecia Bound & Others,

It seems that many of prospective buyers are leary of my post and they should be. Many agents are dishonest about how they make money.

We do charge more to be a buyer agent. We are not ashamed of that. The fact is that having a buyer agent saves the buyer money!

We are straight forward with our clients about the "real" asking price and we represent only the buyer's interest in the deal. This is in addition to the full transitional services offered.

There are some honest hard-working realtors on this site and others. But they are few and far between - and those realtors will tell you the same thing.

It is easy for a gringo realtor to sell a gringo project to a gringo. The commission and price is set in stone and all parties agree. The problem is that those projects are the ultimate in retail and not many good deals can be found. Also, these realtors are looking out for the gringo project - not the gringo buyer.

The problems occur when a Tico seller is not offering a commission. They simply state the price they want and tell everyone to market it at any price above and beyond what they want. Many agents take advantage of such properties and add their desired profit.

Many crazy things occur in the Costa Rica real estate market. The laws are different, the commission culture is different, and legal recourse is non-existent. Therefore, it is always better to hire a professional who is looking out for the buyer's interest only.

For this we (and many others) charge an small additional commission which we are completely upfront about. In fact our main competitors in Grecia work the same way.

Buyers may be opposed to paying an additional percentage, especially because they are used to a uniform structure in the U.S. That structure does not exist here in Costa Rica. It is very important to point out that - Regardless of how the commission structure is worded, only one person pays the commission in any transaction - THE BUYER!

If the realtor claims to only make 5% seller commission, does the buyer not pay that commission through his funding of the sale? Who is to say that the realtor did not raise the actual asking price in that deal? No one. And that happens everyday in Costa Rica. The buyer feels good because according to them they got what they wanted and didn't have to pay "extra".

Some may disagree with this approach and that is fine. We are protecting our clients during the transaction - and yes we charge a buyer commission for the variety of services that we offer. It has been our experience that this approach saves the buyers alot of money in the long run. We have a long list of happy clients to bolster our claims.

As always - Good Luck & Pura Vida

Jeff Hickcox
CRFirst@yahoo.com

huh ???????

"We do charge more to be a buyer agent. We are not ashamed of that. The fact is that having a buyer agent saves the buyer money!"

The way I learned it back in the day; A "Buyer's Broker" should not be in the business of _selling_ real estate as that is automatically a conflict of interest and considered highly unethical.

Also, the way a true Buyer's Broker works is: The customer decides exactly what s/he wants and how much s/he is willing to pay for it. For instance 3 bed 2 bath 2,000 square feet with ocean view ... for $XXX. Then if the Buyer's Broker is able to produce the exact specifications for the exact price s/he earns a set fee. If s/he finds the exact specifications for less than the buyer was willing to pay then the buyer's broker gets a split of that difference based on the agreed percentage.

Buyer's Brokers are extremely rare.

Buena Suerte

Jeff,

I don’t think anyone is saying that anyone in your organization is in anyway deceptive in how you present your pricing. As I said before, I am sure that you are an honest and well meaning individual.

My argument is that it is intellectually dishonest to lead Gringos to believe that it is necessary to have a real estate professional involved in your real estate investments in Costa Rica.



Jeff, this is the reason you hire an attourney! My argument is that the Costa Rican system is set up to rely on Lawyers not realtors. That use of “Real Estate Professionals” might make North Americans feel more comfortable with the process, but in my mind it is misleading to present to investors that they are vital to the process, when in fact, within the Costa Rica system THEY ARE NOT!!! My argument is that there would not even be any realtors in Costa Rica if not for North American that have been misinformed into believing that they need one.

I understand your concept that it is more work for the realtor in Costa Rica, but that does not necessary mean that extra work translates to extra value to the investor. Personally I do not see what value a realtor brings to the transaction to justify the type of fees that you are suggesting an investor should pay, not when you are required to hire an attorney to “look after your interests” as you say.

Explain to me why that is not redundant? Explain to me what you do that an attorney would do, short of driving people around and showing properties. It seems to me that a 6% to 10% realtor fee would be better spent on taxi drivers. Explain to me what value you bring to the process that the lawyer and the taxi driver bring to the process.

You have made the following comment twice:

Kahuna, I agree it could be dishonest to lead another to think it is 'necessary'. However there is nothing dishonest about presenting a case for ones services and why they may be of benefit. I reviewed Jeff's website and feel he does a very good job of marketing his services and creating a 'value added' aspect. They are very upfront about how they charge, why they charge it, and the amount being charged. In a market where anything goes this, upon first glance, looks great.

Jeff, this is the reason you hire an attourney! My argument is that the Costa Rican system is set up to rely on Lawyers not realtors. That use of “Real Estate Professionals” might make North Americans feel more comfortable with the process, but in my mind it is misleading to present to investors that they are vital to the process, when in fact, within the Costa Rica system THEY ARE NOT!!! My argument is that there would not even be any realtors in Costa Rica if not for North American that have been misinformed into believing that they need one.Many North Americans DO need a real estate agent. They are in and out of the country in a week or less at a time. Unfortunately they either do not have, or do not take, the time that is required to develop relationships and buy tico style. The 'rent a friend' concept, or better yet, 'rent a perfessional' works well and serves their interest. Yes the Costa Rican system is set up very differently then the USA system and agents are not technically needed. But gringos are set up to use agents so they brought this system that serves them well with them. An arguement could be made that although some may be misinformed into believing an agent is required, others will be well informed that they need a good honest agent that will provide a meaningful service in a very foriegn land.


Explain to me why that is not redundant? Explain to me what you do that an attorney would do, short of driving people around and showing properties. It seems to me that a 6% to 10% realtor fee would be better spent on taxi drivers. Explain to me what value you bring to the process that the lawyer and the taxi driver bring to the process.

In my opinion, the average North American would not do well shopping for property in Costa Rica via taxi driver (however this does sound like a potential basis for a new reality show... the winner is the one that finds the best deal ). Given the language barrier and the idiosyncrasies of the Costa Rican market... it would be VERY difficult to truly understand the values of the given properties from one area to another... it may even be difficult for someone to simply find what they like... they may not even really know what they want (reality not being what they invisioned). This process could be extremely time consuming, frustrarting, and fruitless all at the same time. A good agent can listen to the 'wants' of the buyer... then by applying their intimate knowledge of the market present the products that fit and advise on value and much more. An attorney does not typically provide these services.

All that being said. I made my first purchase in Costa Rica using a very good lawyer... a tico friend... purchased from the farmer that has been on the property for decades... no use of an agent. This would not have been possible without the tico friend.

Cheers,

To All,

Please forgive the many spelling errors as well as my misuse of the quotation tool. Newbie needs to learn the tools of this forum . By the way, this forum is fantastic!

Cheers,

http://www.nytimes.com/2007/06/08/business/08home.html?hp

"
June 8, 2007
One City’s Home Sellers Do Better on Their Own
By JEFF BAILEY

It sounds like the setup for a dull economist’s joke. Who gets the better deal: the cautious economist who sells his house through a real estate agent, or his risk-taking colleague who finds a buyer on his own?

But the question — debated by two Northwestern University economists who chose different methods to sell their homes — and the research it helped prompt are serious. And the answer will be of interest to anyone who has paused to consider whether paying a real estate agent’s commission, typically 5 to 6 percent of the sale price, is worth it.

The conclusion, in a study to be released today based on home-sales data from 1998 to 2004 in Madison, Wis., is that people in that city who sold their homes through real estate agents typically did not get a higher sale price than people who sold their homes themselves. When the agent’s commission is factored in, the for-sale-by-owner people came out ahead financially.

The study is to be made public on Northwestern’s Web site.

Madison is home to one of the biggest for-sale-by-owner Web sites in the country. The economists pitted that site against the local multiple listing service operated by real estate agents.

There are asterisks. The authors cautioned that they did not know whether the results from Madison applied to the country as a whole; certainly, selling a house without a real estate agent would be harder in a city without a heavily trafficked for-sale-by-owner Web site. The authors are also analyzing Madison data from 2005 and 2006, when the housing market cooled after a long run-up, to see how their findings might have changed.

Some aspects tilted in agents’ favor. The researchers found that homes on the multiple listing service sold somewhat faster than houses on the for-sale-by-owner site. The study also did not place a value on other services provided by agents in selling a home.

The authors have presented their paper at forums at many leading universities, but it has not yet been submitted to a journal for peer review.

For all its caveats, though, the study is highly unusual in comprehensively measuring the impact on the sale price of a home of hiring, or not hiring, a real estate agent.

The findings fly in the face of studies by the National Association of Realtors. The group has said that houses sold via its members’ local multiple listing services get a 16 percent premium over homes sold by their owners.

The economists’ study is likely to be seen as ammunition for critics and lower-cost competitors who question the need for 5 or 6 percent commissions — which deliver about $60 billion a year to agents and their employers.

Homes sold on FSBOMadison.com, the for-sale-by-owner Web site, fetched an average price of $175,068 during the years examined. Those sold on the multiple listing service brought an average price of $173,205, roughly equal when taking into account the study’s margin of error.
...
"

Caveat Emptor

Buena Suerte.

Dave, one word: exactly! I have seen reports of similar studies that also concluded that there is a tendency on the part of a realtor to talk his seller into lowering their asking price much too soon, because it somehow becomes more important to the realtor to move the property, thus settling for a smaller commission, than it is to get the most money for the seller.

That is a fair argument.

Unfortunately for this type of customer they do not realize that they are paying highly inflated prices by purchasing property in the manner you describe. It troubles me that this type of investor is never informed that there is an alernative.

The aspect that I find dishonest is not the rates and services outlined on Jeff’s site, but rather the implication that most realtors leave with their customers that they MUST have a real estate professional and they MUST purchase property in this manner. That is offensive to me.

One particular book on purchasing real estate in Costa Rica that claims to that it is a guide on how to purchase property without loosing your shirt does not even mention anything about purchasing property Tico style. To the contrary, the author incessantly promotes his own services and basically claims he is the only one an investor can trust with their real estate investments. I find this doubly offensive and deceptive.

Kahuna, your being offended is perfectly understood and I completely agree. There is a difference between good marketing and deceptive marketing. I respect and rather enjoy good marketing as well as selling a value added service. I also enjoy seeing a professional get more $ for a product by truly selling it's value... specially when I find myself on the receiving end (does not so much relate to my real estate transactions). It is fun to watch a professional work and do good at his job!
However deceptive practices and people that do not follow through... do not 'deliver the goods' so to say... is highly offensive and I am quick to walk away to such individuals or companies.


Dave & jdocop... In the USA it is very easy to ascertain a value of a property. Public access to the MLS via computer makes finding good comps rather easy thus marketing a property is much easier. However, take the MLS system away (which I believe is provided by the realtors) and this process becomes more difficult. In Costa Rica the process of finding the value (if value to the buyer is derived by comparable properties) can be rather difficult.

The realtor is a tool... a resource... he/she should not be regarded as the final say on what a buyer or seller do. They are more of a facilitator... a mediator... a good one is very much so worth his fee... a deceptive/unprofessional one is shameful to see... much like the players in any profession.

In the end a deal is only a deal if both parties sign.

Cheers

That is exactly right! I have no problem Jeff’s approach in marketing is service. He is very upfront with his fees and his reasoning for charging those fees. Take it or leave it, fair enough. For the type of investor that you described above, one that is investing from afar a realtor provides a needed service, albeit an expensive one.

However, there is a customary way of purchasing real estate in Costa Rica and it most certanly does not include hiring a realtor. I can understand why many would want to opt out of the traditional process and choose to hire a realtor. But it is deceptive to tell people that they need a "Real Estate Professional" when purchasing real estate in Costa Rica.

Investors should have the option to "opt out" of the traditional meathod, instead of being told that they MUST have a "Real Estate Professional" to "look out for their interests". Jeff has been as guilty of that as others. Hiring a realtor is not the traditional way of purchasing real estate in Costa Rica. PERIOD!!!

When people write books on the subject, the traditional method of purchasing real estate should be covered in that book. If people want to opt out of that process fine, if the author of that book wants to present arguements against the traditioanal method, fine! However, when you purchase such a book on the subject of purchasing Real Estate in Costa Rica, you have a right to expect to be provided with complete information with all of the options so that you can make up your own mind on what approach suits you best. To completely omit the traditional meathods in order to promote your own business interests to me is a rip off of the public.

Neither book buyers nor investors should be led to believe that hiring a "Realtor" is vital to avoid getting ripped off in your real estate investments, especially when better values can be had if people are willing to take the time to do it the traditional way.

I agree it is "easier" in the USA with access to somewhat reliable public records. The MLS gets its records from the public record. For those who like to play with this stuff you might want to try zillow.com

But it not that hard here to build your own database (I have mine in Excel) and pay attention to asking prices. If one pays attention and does some basic arithmetic within a few months you too will know which prices are absurd, which are realistic and which are bargains.

IOW do your own homework (or pay the piper)!

Buena Suerte.

One particular book on purchasing real estate in Costa Rica that claims to that it is a guide on how to purchase property without loosing your shirt does not even mention anything about purchasing property Tico style. To the contrary, the author incessantly promotes his own services and basically claims he is the only one an investor can trust with their real estate investments. I find this doubly offensive and deceptive.
[/quote]

Kahuna,

While it is true that to a savvy person Scott's book does contain alot of fluff and self-promotion, it is disingenuous to say that it does not mention Tico homes. In fact, it covers them extensively and even has exact instructions on how to find Tico listings in La Nacion and other Spanish publications.

My partner, Terry, is a contributing author in that book, and her section on Atenas/Grecia also covers Tico homes.

I understand you have bad feelings about Scott, but please do not misinform the board.

Pura Vida!

Jeff,

With all due respect, that is NOT the point.

My point is that the traditional manner of purchasing real estate in Costa Rica does not involve a Realtor. The traditional manner of purchasing real estate involves working through your own network of friends and associates and using an attorney to manage the process and look out for your interests.

It is commonly understood among those in the know, that this is the process by which the best values are obtained, rather than purchasing property Gringo style through a Realtor. My point is that for those that are willing to invest the time to purchase real estate in the traditional Costa Rican manner, the manner in which Tico's have always purchased real estate, there are opportunities to save a ton of money without dealing with individuals like youself (no offence intended) that want to add commissions to both ends of the transaction.

There are fair arguements againast going this route, perticularly for those that are investing from afar. I can also understand why Scott would want to argue against the traditional method of purchasing property in Costa Rica. However to completely omit this traditional manner of investment from what is presented to the public as complete guide to purchasing property in Costa Rica is ethically deficient in my humble opinion. The public has a right to expect that when they spend their money on such a guide that they are going to be presented with all viable options (in particular, the traditional meathod), not just the ones that suit the business interests of the author.

For what it's worth, please let me point out that a mention of Tico homes by your friend, Scott, is not the same thing as mentioning not just the traditional method of buying property in CR, but the preferred method for any one who is trying to get the better deal (for all parties, btw).

MOST real estate foke are trash and snakes at best. TAKE YOUR TIME. Find a good lawyer and trusted tico friend.

I've met the snakes, trust me on that one. But I also know a lot of honest real estate agents. We all need to make a living. True, real estate is a cut throat type of business. And by the way, you don't need to have a code of ethics in order to be ethical and vice versa. Realtor.com has never impressed me. I love how they double their fees on many of their members from one year to the other.

The whole thing drives me crazy.

WOW. This thread really took a turn for the worse LOL. I'd just like to say the following:

There are honest Realtors, and Kahuna is right, finding real estate with Realtors is not (and has not) been the traditional way to look at real estate. As a Realtor, I don't believe that every client needs one. I wrote an article saying if you speak Spanish, know the area, etc, then you may not need me! Pura vida y buena suerte. Honesty first! However, to the average tourist, they have no desire to drive around with a Tico Driver (who may or may not speak English) to find real estate. Who is to say that the Driver is Mr. Honesto? You know what I mean?
Not all Realtors are snakes. I've been one for many years, and although I may be the few, I'd like to think I am a good and honest one. I am also one who understands the culture of the US buyer and Tico buyer, afterall I am "1/2" Tica.

Kahuna,

I agree with Becky's main point: For the average tourist a realtor offers a valuable service. Sure there are agents that will tell clients anything to get them to buy, but so will nearly every Tico who offers to show them around.

You live here in CR and understand values, the system and the laws. Most people in the States don't even know where CR is. Once they become interested in CR and do a bit of research, you would HONESTLY recommend your purchase method as a safe way to find a good deal? Your method of mingling with Ticos and finding a lawyer, you must admit, is hardly the safest approach.

Obviously if you live in CR for some time your method is do-able. That is not the reality for the majority of foreign buyers. Scott's book tries to inform people of the pitfalls that can occur. Scott Oliver is trying to protect and educate unsuspecting buyers to the point where he recommends renting for a year before purchasing a house. If they follow that advice, more than likely they will use your purchase method.

Yes, Scott does profit from the RE industry, but I don't understand how you can fault him for trying to educate the "average" buyer - who may only have a week to search for a retirement home. He recommends realtors that he has personally screened for their legality, language skills, and intergrity.

I think we can agree that Scott's approach of being overly cautious is not a bad thing for the average foreign buyer. Further, hiring an honest buyer agent will save the buyer time, money, and headaches in the long run. Can't we agree that that is the case for someone who only has a week or two to search for a home?

Paz and Pura Vida!

Jeff Hickcox

Jeff,

You make a valid point and I do appreciate that you are here to defend Scott's position.

Yes the average uninformed buyer that does not want to learn the culture and the customs of the country that they are investing in can benefit from having a real estate agent. FINE. That does not change my central criticism of Scott's approach.

What I take exception to, and what you have failed to address, is that Scott has written a book that is completely self serving and fails to give the consumer the information as to how to buy property in Costa Rica at the best possible price. What he utterly fails to do is to explain to the customer ALL of their options and in particular those that do not favor his business.

YES, you are right, many people are too lazy to learn the "Costa Rican" way of doing things. Those people should should probably get a realtor and they should accept the inflated prices that they are paying as a cost of doing business.

However, I personally am offended with the misleading nature of Scott's book and how it is presented as the ONLY way to do things in Costa Rica. I am doubly offended by Scott's representations that he is the only one you can trust and that everyone that is not in his circle is someone not to be trusted. In fact, it is Scott that is presenting information that ONLY serves his interests and he leaves out anything that does not enhance his business.

All that is 100% fine when you are presenting to the public your marketing material. That is what marketing is for. What I find ethically deficient is the fact that he SELLS his marking material to the unsuspecting public that thinks they are buying an objective text on how to buy real estate. THIS IS JUST WRONG, PERIOD!

If he were a true honest broker of information, as he repeatedly goes out of his way to claim in his poorly written book, he would also explain the "Tico way" of doing things and give his reasons why it is a bad idea for the type of customer you describe. That would be the honest way of presenting the material. It would still be biased, which is fine, but not misleading, which is not.

Instead, he only presents the information that serves his interests and tells people that he is the only one that can be trusted in the entire country. I find his entire approach ethically bankrupt, sorry!!!

I personally felt like I was duped after purchasing the book!

All good points.

My only complaint is that people are not given the correct information so that they can make an informed decision on their own.

It is not the realitors place to make this decision for the client.

Yes, MT, I do think you are among the minority of honest ones out there. The jury is still out on Jeff

You should write a book on buying real estate in CR and do it right!

Kahuna,

It is clear that you do not work in the RE industry in Costa Rica. I look at new listings everyday, mostly from Ticos. They are asking rediculous prices for their property. The idea that a gringo is going to find a better deal from a Tico network is laughable. That may have been true in the past, but now ALL of the Tico sellers are beginning to ask absurdly inflated prices -especially when they see a gringo.

The reason Scott does not put that method in his book, is not because it doesn't serve his wallet, it is because it is a foolish and careless way to find a GOOD SAFE deal. The only people who know true market values are the ones in the trenches everyday. A buyer who retains an honest agent will get honest views of values. That, my friend, saves people money.

Scott has put his name and face behind his words and reputation. You pretend to be an expert and yet you hide behind "Kahuna". Who is to trust your knowledge and why?

Sincerely,

EXACTLY! I do not work in the real estate industry! So guess what? I have no agenda! I put forward my opinions based on my research. I do not pretend to be an expert. I only take objection with those that claim to be experts and only provide their clients with the information that is in alignment with their own personal business agenda. You and I can debate Scott's motivations, but facts are facts. The traditional method for purchasing real estate is totally ignored in Scott's book. If not for me, and others like me on this board (non realitors), people would not have access to the information so that they can make their OWN informed decisions as to what is the best method of purchase for them. People should be able to trust that their "Real Estate Experts" are giving them complete information and not just the information that fits with their own business interests.

So you say you look at Tico "listings" everyday. Exactly where are these "listings" listed? I have absolutely no idea what you are talking about when you talk about listings in Costa Rica. Please tell us about the listing service here in Costa Rica.

In fact Jeff, let me to be the first to inform you that there is at least one attorney here in Costa Rica that specializes in the exact type of deal you find so laughable. There is one company I know of that is called Gringo Services and they have an excellent reputation for putting together exactly the type of deal you find "laughable". So laugh away.



Laughable?

First, lets just start with the fact that there are many gringos right here on this discussion board that have done exactly the thing that you claim is "laughable". So I am not sure just who is laughing at whom.

Yes, there are inflated prices in the real estate market in Costa Rica. Just where did all that start? Ticos are just mimicking what they see the Gringos do and why shouldn't they?



Then let Scott make that argument in his book! Then he would have some credibility. To claim you are an expert, then to write a book and omit the most prevalent method of purchasing property (weather he agrees with it or not) is just wrong. Instead of giving the readers the information so that they can make up their own mind, he incessantly markets his services. This practice is fine for marketing material; it is deceptive when you are selling a text to the public on the subject.



I do not suggest that anyone should act on my opinions regarding real estate and I never have. I have NEVER, not once, claimed to be an expert. I have never, not once, attempted to sell a property here in Costa Rica.

To the contrary I have never claimed to be anything other than an expert on tour and travel. When I am working with a client, I give them all the options, the ones I prefer and those that I don't. Many times my clients choose things that I advise against. My job is not to decide for them, my job is to give them the information and my professional advice and it is up to them to decide what is best for their own situation. For me to only recommend only options that suit my personal interests would be unethical.

I find that MANY realitors here in Costa Rica do exactly that. I would hope that you would not be one to fall into this category, yet you seem to be advocating this exact practice.

One final comment Jeff. Your choice of words is curious. "You pretend to be an expert and yet you hide behind "Kahuna". Those are the very words that Scott used in a very hostile post he put on this BB. It is an amazing coincidence that you would choose such similar verbiage. Or is it? Scott wanted to attack me personally here on the Board. I suggested that I would be happy to debate the merits of his book and he has not been back since.

You use his exact words, so just who is hiding behind whom?


HAVE A NICE DAY!

Kahuna,

I had no idea you had a past history of animosity with Scott. I sort-of guessed that you did. Wow, you're pretty bitter about it.

I said it is "laughable" to suggest that your method is SAFER to find a good deal for the average "tourist" buyer. Not that the method isn't handled by experienced people. I already told you that I agree that retaining a good attorney and learning values on your own can work for some people. Just not the ones who have limited time.

When I say I look at New listings everyday - I mean a Tico seller calls our company to list their property for sale. In the last few months the majority of those listings have been grossly overpriced. It would be very difficult to find the true values of property in 1-2 week property search. Honest agents list properties for exactly what the seller tells them to list it at. How does that fit your "inflated price" model when using realtors?

Much mud has been thrown around on this post at realtors. There are honest and dishonest people in every profession. Those of us who service our customers with integrity somehow get thrown in with the rest. I have heard as many bad lawyer stories, scams etc.. happening while trying to avoid using a realtor, as I've heard about dishonest agents.

Here is my opinion: A vacationer/foreign retiree is more educated after buying Scott's book - not less. With limited time to search they are better off retaining a HIGHLY recommended agent to help them find, purchase, protect, and befriend. They will save time, money, and headaches The client will find a home that is priced the same as if the Tico taxi driver showed it to them and maybe LESS!

I'm sorry you do not like Scott Oliver or his book. Yes his book is not perfect, but at least he has put his reputation on the line to try to educate potential buyers. I suppose that Scott and I must think alike: when someone likes to criticize other people and then hide behind an alias, they seem disingenuous.

Kahuna is the resident "know-it-all" on ARCR. We must not criticize or disagree with him. For he is the big Kahuna.

Pura Vida

Dear Jeff.

I have no animosity toward Scott personally. I don't know the guy. To be honest, I found his outburst here on this BB a bit comical. He is the one with the problem, not me.

I do feel very strongly that his book is deceptively presented to the public as a text book when it is nothing more than a marketing device that he sells to an unsuspecting public. There have been many that have purchased his book on Amazon.com that feel the exact same way I do and you can go and read the reviews for yourself. I also felt decieved after purchasing the book on Amazon when I discovered that all his friends "stuffed the ballot box" with positive reviews in a very short time after the book was posted on Amazon. Anyone that looks at the dates of all the positive reviews can see that there was a coordinated effort to get a lot of positive reviews for a very poorly written book.

I have been on this board for a long time and I challenge you to find one time where I have been disrespectful of anyones opinions! It is you that appears to not be able to deal with someone that expresses an opinion that you have no answer for. Rather than address the issues I raise, you attack me personally. Nice.

If you feel the need to criticize me personally, have at. If you an put together a valid point, I may even agree with you. The problem is, you really don't address the points I make, and neither does Scott. Rather you side step them and try to make this into a personal issue, which it is not.

Scott needs to spend $10,000, hire a ghost writer and fix the damn book. What he is selling now is marketing material that only addresses information that suits his business interests.

"Hide behind an alias", gee Jeff, there are not more than 2 or 3 people that use their given name on this BB. Why are you here if you can not trust any of them? That is an obsurd point. What about MediaTica, TicoGrande, JDcop to name just a few? Are they hiding too? That is just crap Jeff and you know it. Very, very few people (especially those that understand the internet) use their real names on BB. That is a rediculus personal attack that is nothing more than an attempt to side step and avoid the issues I have raised. .

I have to add to what Kahuna has posted. I would recommend that you take a look at profiles (that's why they are there, you know) should you have any questions about who we are. For what it is worth, I never read Scott's book myself. But, as Kahuna has pointed out to you (and, you keep ignoring) issues have been raised by him in his posts, and your responses do not address them. One more time, let me explain how our family found and bought property in CR, and how I will buy when and if I decide to do so: we visited for years, got to know people, then talked about the possibility of maybe living there someday. People then reacted to what we said (Ticos) and would mention different properties that might be available. When it was time to actually look at property, we just drove around with our Tico friends, who introduced us to the owners. All negotiations took place between owner and potential buyer. Then, when it looked like a deal was possible, we went to the lawyer, who took care of the paperwork. No realtors ever involved. None. No need. What part of this process do you all not understand?

As for using our real names, you might look into the history of the internet and BBs/forums. Personally, I have used this same online name (or, handle, if you will) for about fifteen years, dating back to when email and BBs were text only. As I told you, if you'll look at my profile (just click on my online name) you'll see more than you need to know about who and what I am. Certainly more personal information than your own profile reveals. (note to Kahuna: his profile reads like yet another commercial)!

OK! Everybody out of the pool! I am stepping in now as I know where this is headed, and that is not going to happen.

The subject of real estate and specifically real estate agents seems to be a truly polarizing issue in these forums. This subject has been beaten to death and nothing new is ever added.. just restatement of opinions... then it gets a bit nasty. People state their opinions, someone else replies, and after 5-6 posts, things start getting personal and THAT, as you know, we do not permit. Everyone here is welcome to their opinion, but if you do not agree with that opinion, by all means feel free to reply... but be polite!

Whether you like them of not, realtors have a right to be in Costa Rica and to try to earn a living! You may feel they serve no purpose whatsoever and are unnecessary. OK... say that then drop it. Readers of these forums are not stupid. They are capable of reading all opinions and making a decision if using a realtor is for them.

Many people do not have the time to visit Costa Rica several times in order to build the relationships mentioned by JDOCOP. Sure, that is the best way to do it, but not always practical, so they use a realtor to introduce them to the marketplace. I do not see that these people have a lot of options if they insist on buying right away.

Saying that, and as I have mentioned here and elsewhere, to come here and buy property immediately is just not smart! There are probably 10 reasons why they should not buy this way, the three biggest being:

• You almost assuredly will pay too much as there is no Multiple Listing Service to get comparisons
• You almost assuredly will buy in the wrong location as you have not had a chance to visit ALL the great places in Costa Rica and
• With about 40% of the people leaving to return home within 1 year, how on earth do you know you will LIKE and can even live here??

I spoke with mover Charlie Zeller a few weeks ago and he gave me an astonishing statistic. He tells me he moves BACK 60% of those he moves here in that first year. SIXTY PERCENT!! How can anyone ignore either of the above statistics?? Smart people come here and live for at least six months before they buy. Learn the country and the culture. Do not sell the home back home and liquidate assets (also known as putting all your eggs in one basket). You are just begging for trouble!

Do not make ANY decision that you cannot "undo" in less than 5 phone calls. Then, if all does not go well, you lose very little except your time. I PROMISE there will still be property to buy and realtors to sell it in a year!

As for realtors, not all are scumbags. Some, probably most, are honest people, but check them out just as you would if dealing with anyone. Here are a few suggestions!

1. Here is one I think is VERY important, but often is totally ignored. Are they themselves here in Costa Rica legally? Many are NOT. Do they have Permanent Residency or citizenship (required to work here!) or are they perpetual tourists? This is important because if they have not committed to living here and working legally, what interest do they have in making sure you will be happy and in the right home. Hell, they could be gone tomorrow! Ask to see their cedula (residency card) and remember, rentistas and pensionados may NOT work here legally in Costa Rica.
2. How long have they been in this country? I mean living here.
3. How long have they been in the real estate business? This is very different from #2!
4. How many homes have they actually sold, and by this I mean through closing and delivery.
5. Will they provide the names and phone numbers of the last five clients that used them to buy a home?
6. Do they specialize in ALL of Costa Rica (impossible IMHO) or do they have a "territory" i.e. in and around Playa del Coco?

I am sure readers can add to this list, but off the top of my head, those are some of the biggies! Same goes for any non-Tico who may be building a home for you.

In any case, a realtor can be of assistance, but if you still insist on buying here without having lived here, you are opening yourself up to some very unpleasant possibilities. It is very easy to buy here. It is MUCH harder to sell if you made a mistake and MUCH MUCH harder if you overpaid!

I am not going to close this thread yet, but people... be nice to each other.

TG

Kahuna,

I apologize that my post appeared to be attacking in nature. Your posts are thoughtful, well written and polite and you do not deserve to be attacked. Thoughtfully questioned -YES, attacked NO. As a real estate professional, I feel personally attacked regularly on this BB. I service my clients with integrity and genuine friendship, and nothing is more painful to me than having my integrity questioned - especially from nameless folks who don't even know me.

As to using a name on the internet, I also understand where you are coming from. My thought is, when I use my real name it is because if the world sees what I write - Great. I am not ashamed of my words or actions. But I do understand the apprehension. Although, I do know every one of those alias names that you mentioned- and as far as I can tell they don't have anything to hide either.

I agree that Scott's book is not perfect, full of self promotion, and not for everyone. So to your main opinion I agree with you. I simply think that the book is still helpful for some people - if they can read between the ads for his website. I'm unaware of Scott's rant on this BB. However, I do know Scott and I know how he runs his operation. He is a stand-up guy who really takes care of his client's needs. To me, that is the most important thing.

Real estate is tricky business here as you know. As someone who works this industry, I wish you were right that good deals can be found through Tico networks. Our Tico partner is the property acquisitions guy to help discourage Ticos from jacking up the prices on us gringo agents. They still request much higher prices than the market is bearing. Ticos know that foreigners will pay more money and they are beginning to ask super inflated prices (in my area anyway). In my opinion, a foreigner would have to be extremely lucky to find a good deal through Tico channels. Further, many scams can occur to unsuspecting foreign buyers using that method.

So even though I disagree with you that the traditional method will work for the average foreigners - you're right that in a 'How to Buy' book should include the traditional method. Unfortunately, the traditional method is becoming obsolete for many reasons: Ticos want more for their properties from foreigners, Foreign buyers have limited time to search and research (not that they are 'lazy' or don't want to learn the customs), Buyers want to have a sense of true market values, Finally they don't want to be a victim of a scam.

Kahuna - please accept my apologies. My name is Jeff Hickcox, 31 years old, married with 2 boys and one on the way (in 3 weeks). I am a Buddhist, avid reader, writer, political activist, and family man - and clearly have nothing to hide.

I hope we can agree to disagree from time to time - peacefully.

Pura Vida

Thanks Jeff.

I don’t take any of it personal and you don’t really need to apologize. It is just a damn web site after all. I have never gotten the impression that you are a bad guy.

I have no problem with a little self-promotion in an appropriate setting. Everyone needs to make a living. However, when you go down that road on this BB, you better be prepared to back up what you put out there on the board. This BB has been like that since I joined it. You have taken the approach of putting yourself out there a little and you have taken your lumps. MediaTica (the other resident real estate regular) was been a little more subtle in her approach and I think she has had an easier time than you. It is all a question of approach and it is not something that you should take personally.

I do enjoy a vigorous debate of the issues and as I said before, I do appreciate the fact that you are here to represent Scott’s case. In the end it is not important if you or I agree or not. It is not important for us to change each other’s mind. Those visiting the web site can judge the merits of our arguments for themselves. In the end that is the whole point of having a BB in the first place. Personally I get more out of reading a thread it if there is some disagreement. Personally, I have also learned a lot in the process of going through this debate with you. If we both come out a little wiser from the exchange than we both benefit.

Make no mistake; I have no personal feelings (negative or otherwise) toward Scott and certainly not towards you. It goes without saying I take strong exception to how Scott goes about promoting his business. In the end, it is up to others to judge the validity of my opinions and the appropriateness of Scott’s approach.

My final word on Scott’s book and I said it before, if his intentions are as you say, and as he presents himself to the public in his book, than he should absolutely FIX THE BOOK!

I, and many others, have felt deceived in the purchase of his book. All the talk in the world is not going to make that problem go away for Scott. We can go back and forth verbally all day long, but as long as that book is on bookshelves as it is now, there are legitimate questions that can be raised regarding Scott’s integrity. It is up to Scott to do something about it. Actions speak loader than words. He has sold enough copies to justify doing it right and fixing the problems with the book he is selling to the public. If he doesn’t want to fix the problems and make it right, than what he is saying with his actions is that all he cares about is making money. As far as I am concerned that is the bottom line. As long as he keeps selling it the way it is now, I am going to continue to complain.

Hang in there Jeff. Most of what you have brought to the board has been good. I can honestly say that I have incorporated a lot of your information into my thinking from our discussions.

Best, Kahuna