Luxury Real Estate

Courtesy of Scott Cutter of 2CostaRica Real Estate

The past 12 months in the real estate world here in Costa Rica has been quite a interesting time for professionals, buyers and sellers in the marketplace.

Perhaps the most challenging task that we have faced as real estate professionals has been the job of re-educating sellers as to the market conditions, values and expectations that they can expect if they would like to sell their property within a reasonable amount of time.

In a market void of an MLS, comprehensive comparable stats on true sales values, volumes, etc., there is a constant battle to keep sellers realistic about values while battling the proverbial: "But 'so-and-so' has his property down the road listed at $2,000,000 and our house is much nicer".

As a father of two, I have now come to fully realize how blind we can all be in our self analysis and that of our own properties, and have learned to deal with this point with our sellers with great care, but that is the subject of an entirely different article and story...

Back to values... In addition to the lack of comprehensive hard data other than our years of experience to share with clients, another obstacle is the fact that most buyers in Costa Rica, especially in the coastal areas, paid cash for their properties and in a country with such low property tax and holding costs, many sellers are content to wait for better times in which to sell.

This is a critical point for Foreign investors to understand. The market adjustments which you see in the USA which tend to move the market up and down in unison as since the VAST majority of real estate there is purchased through leveraged financing, changes in interest, values, absorption, etc. can drive the market in either direction and virtually everything for sale follows that trend.

Here in Costa Rica, you will find a house listed at $1,500,000 right next to one that is every bit as nice, listed at $700,000 and it can be confusing to anyone without the experience to understand the fundamental differences in the market place. The reality is that despite the economic times we find ourselves in, there is a great deal of new movement and sales taking place in the market.

Careful about getting too excited sellers... as this movement is virtually ALL due to the fact that despite the low holding costs, more and more sellers are coming to terms that an imminent boom like the one we enjoyed for nearly a decade is not returning any time soon and adjusting prices to invite buyers to the table.

All economists talk about the huge pool of money on the sidelines right now, with investors just not sure where to go with their funds. Costa Rica remains a fantastic lifestyle and investment destination and buyers are here, looking and snatching up well priced opportunities in virtually every part of the country.

While 4 years ago, we spent all of our time educating Buyers about how even though it seemed expensive to purchase here in relation to the infrastructure, etc. that it was worth it as this was the future destination of much of the world. Now, my team, and my bet is most Realtors who are true professionals, spend most of their time working with Sellers to create realistic expectations of pricing and sales timelines.

For those that "we will sell if we get our price" those timelines can mean years.

We are also helping Sellers realize that taking a much lower price than what they hoped in this market, also has some advantages. The largest of which is that Sellers who move properties now get liquidity to become Buyers in what is arguably the most favorable buyers market around the globe in the past two decades.

Whatever losses or reduced profit margins are absorbed now can normally be regained by becoming a buyer and is something more and more sellers should and are considering.

For Costa Rica real estate buyers... There has never been a better time to be sourcing deals in Costa Rica.

For Costa Rica real estate sellers... Either arm yourself with patience or, we must collectively work towards recognizing that the discerning buyers who actually have money to spend, are not paying the premiums of the pre-crisis days in today's market. Those who can come to terms with this are selling, those who aren't.. are now and most likely will be waiting for quite some time.

Member Bob Hurwitz of Hurwitz James Co. provides insight on the 14-story oceanfront building.

In the U.S., the McMansion craze may be fading, but down in Costa Rica luxury has taken a super-sized turn. New to the market: the penthouse unit of the 14-story Genesis Puntarenas, a 68,459-square-foot oceanfront spread that’s a good 10 times the size of your standard American mansion.

For full article click here

(TIBAS, San Jose, June 15, 2010) –  Coldwell Banker Costa Rica has 11 offices throughout Costa Rica, in prime locations. Each office has extensive property inventories they are anxious to share with prospective buyers and professional real estate associates internationally through the Luxury Real Estate web site and networking programs.

Watch for the publication of their inventory in a couple of weeks on www.luxuryrealestate.com

About Coldwell Banker Costa Rica

Coldwell Banker, with over 104 years of international real estate experience, has been operating in Costa Rica since 1998. Their franchise offices are located in prime locations throughout the country and their sales associates have extensive expertise in their local markets.  Coldwell Banker diligently and continuously researches and implements ways to provide improved services to their clients.  “The foundation of our  success is  operating with core values directed toward customer satisfaction and service” (Linda Gray, President of Coldwell Banker Costa Rica).

About Luxury Real Estate

LuxuryRealEstate.com, a 2009 Webby Award Honoree, has been voted ‘Best of the Web’ by Forbes magazine multiple times, praised by the International Herald Tribune, Town & Country, the Wall Street Journal and has been ranked ‘Best Website’ by consumers according to surveys by the Luxury Institute. Since its debut in 1995, LuxuryRealEstate.com has remained the #1 portal for luxury properties on the internet, consistently driving more traffic to member websites and generating more qualified inquiries than any other website. LuxuryRealEstate.com has several times more $1,000,000+ content of any near-peer.

Also known in the industry as the Who’s Who in Luxury Real Estate network, a global collection of the finest luxury real estate brokers in the world, this group of more than 1000 brokerage firms and 95,000 professionals in more than 65 countries collectively sells in excess of $190 billion of real estate annually, with an average sale price of $2,450,000. Members sell homes for record prices and handle transactions of incredible complexity and magnitude with complete discretion. Every member is carefully selected by CEO/Publisher John Brian Losh, one of REALTOR Magazine’s 25 Most Influential People in Real Estate and broker of fine properties and estates through his Seattle-based brokerage firm, Ewing & Clark, Inc.

LuxuryRealEstate.com is proud to introduce our new member in Costa Rica.

Coldwell Banker Costa Rica is supported by one of real estate's most recognized and respected names, Coldwell Banker. Coldwell Banker Costa Rica presents 12 offices covering from the beautiful north Pacific beaches of Guanacaste through the Nicoya Peninsula, the Central Pacific Coast and all the way down to the very tip of the Osa Peninsula. Coldwell Banker Costa Rica offers hundreds of exquisite and unique luxury homes.

For over 100 years, Coldwell Banker has provided sound real estate advice worldwide, and the Coldwell Banker Costa Rica’s offices provide this advantage to clients, helping them find their ocean view homes, second homes or investment properties in Costa Rica.

Coldwell Banker Costa Rica’s real estate agents relocated to Costa Rica and invested there. They know the country and understand Costa Rica’s real estate laws and finance. They help clients find the right properties and mortgages, or property financing packages for projects. Its qualified brokers are industry leaders, providing consulting services that buyers and sellers can count on. In addition to detailed, verified home and vacation listings that will fulfill clients’ wish lists, Coldwell Banker Costa Rica offers Coldwell Banker's renowned, innovative consumer services.

For more information regarding Coldwell Banker Costa Rica’s portfolio of luxury properties, please feel free to visit http://www.coldwellbankercostarica.com and/or contact at info@coldwellbanker.co.cr

About Who’s Who in Luxury Real Estate: Who’s Who in Luxury Real Estate is an invitation only network representing the best luxury real estate firms and professionals from around the world. Each affiliated member is carefully selected to represent his/her market area. Who’s Who in Luxury Real Estate also hosts the industry leading Website www.LuxuryRealEstate.com (a 2009 Webby Award Honoree).

By Todd Cutter

Breathtaking beaches, stunning rainforests teeming with wildlife, pristine waterfalls, lakes, and rivers, along with endless activities ranging from adrenaline-boosting eco-adventures to soothing relaxation in some of the worlds premier resorts are just a few of the reasons why Costa Rica has become a Mecca for vacationers, retirees and investors from the world over. Costa Rica’s stunning natural beauty and abundance of wildlife are matched only by the warmhearted and peace-loving people who call this paradise home.

The unique combination of tropical rainforests, stunning beaches, active volcanoes, world-class surfing, an array of adventure activities,  some of the world's most breathtaking rivers, waterfalls, and other dazzling natural phenomenon have made Costa Rica an ideal location for travelers from all walks of life, looking to rediscover the natural wonders which inspire us all. In recent years, Costa Rica has also become increasingly well-known for its investment potential, stable democracy, inexpensive cost of living, first-class health-care system, and overall lifestyle it can offer the international community.

With an environment of enormous potential, Costa Rica has investors, retirees, as well as vacationers from all over the globe flocking to seize on the opportunities to own their own piece of this tropical paradise. Whether you are looking for a vacation getaway for you family, a rental property offering secure annual returns and appreciation, or the retirement spot of your dreams, Costa Rica offers the answer.

Finding a more complete destination is nearly impossible. To have such a spectacular natural backdrop, without sacrificing a peaceful and stable democracy, tremendous investment potential, a fantastic health care system, booming tourism, and an ever-expanding infrastructure makes Costa Rica a truly unique destination for investors, vacationers and retirees alike.


Editor’s Note:
Todd Cutter is a real-estate agent with 2Costa Rica Real Estate, a member of Who’s Who in Luxury Real Estate. Originally from Birmingham, Ala., Cutter came to Costa Rica in 1998 after graduating from the University of Colorado at Boulder with a degree in Spanish for International Business. Upon his arrival, he founded an online travel business. Although his travel business is still in operation today, he sold the business to dedicate all of his time and energy to 2Costa Rica Real Estate. He specializes in large development parcels, hotel development and marketing programs for developer partners. Another LuxuryRealEstate.com member has submitted content to the Luxury Real Estate Blog. This is wonderful. That’s a lot of praise for Costa Rica! I’ve been hearing quite a bit about great investments to be found in that beautiful country. Maybe that would be a good place to seek your new luxury home.