Knowing how to choose a realtor in Costa Rica makes all the difference in the outcome of your real estate purchase or sale. Buying property can be a nerve-wracking process, no matter where you live. It always involves money and unknowns – and frankly, salespeople have been the subject of many jokes, even if they aren’t selling used cars. No one likes to feel like they’re being tricked, and the feeling of uneasiness is even greater when buying or selling a property in a foreign land.
To build your confidence and increase the chances of a pleasant and productive experience, let’s go over a few pointers.
Tips for Finding the Best Realtor in Costa Rica
When selling and buying real estate in Costa Rica, due diligence is key. This means researching the area you’re interested in and reading articles about the general condition of the market there. You’ll also find plenty of bloggers who write about every little aspect of life here in Costa Rica. Some blogs are quite good, while others might use the platform to vent their frustrations about living here. Either way, both can be a wealth of insider information. But, beware of accepting just one person’s opinion.
To assist you in your search, here’s some advice for finding the right realtor.
Step 1: Do Your Research
When searching for the best realtor in Costa Rica, start with searching for “real estate” and the area you’re interested in. For example, you can try searching “real estate Playa Hermosa” and start researching the property listings of the various real estate agencies and individual realtors in that area. Sometimes, you can get a feel for realtors and their style just by reading through their websites and blogs.
As the saying goes for books, don’t be quick to judge a real estate website by its cover! Some long-term, experienced realtors may not have the slickest, most modern websites, but they still offer a wealth of knowledge and experience. On the other hand, a modern website indicates the agent is willing to spend hard-earned money to promote listings. So, to get a true feel of how responsive they might be to your needs, send an inquiry to see how quickly they respond.
Step 2: The Glass Slipper Test
Gather a list of prospective realtors in your area of interest and compare to see who fits the shoe best, especially if your goal is to sell a property. Just because someone calls themselves a realtor, it doesn’t always mean they can legally sell real estate in Costa Rica. To legally sell property in Costa Rica, registration with SUGEF (“Superintendencia General de Entidades Financieras” or “General Superintendent of Financial Institutions in English”) is required. (More on this below).
And, yes, there are still scammers roaming the Costa Rica real estate market, hence why due diligence is important when searching for the right realtor.
Step 3: Request a Meeting
Once you’ve chosen a realtor, or slimmed down your list of perspectives, request a meeting so you can take note of the qualities that matter to you most, such as punctuality and professional appearance. Also note if they appear to take personal interest in you and make you feel like your business is valued and important, even if you’re not a high-dollar client.
Trust your instincts. Changing a first impression is quite difficult, so ask plenty of questions. For example, you could ask how long they’ve lived in Costa Rica, specifically the area you’re considering. You could also ask about their area of expertise, how long they’ve worked in real estate, what geographical area they cover, and if selling property is a full-time job or hobby. Most importantly, ask if they’re legally allowed to work in Costa Rica; if they are SUGEF registered; and if they’re affiliated with any real estate associations in Costa Rica or internationally.
If you’re selling, you may also want to ask how and where your property will be listed and promoted. Good realtors should be able to provide a list of all promotional platforms they use, as well as how many sales they’ve completed in the last year. Of course, their answer may depend on the market in the area, so it’s a good idea to investigate the market trends beforehand.
If a realtor makes excuses for why they haven’t sold anything in over a year, especially when you know properties are selling like hotcakes – then, you may have an ugly stepsister on your hands. Sanitize that glass slipper and try it on the next! If things are clicking and the shoe seems to fit, it’s time to discuss terms of the contract. Any agent worth their salt will have all that information readily available.
Step 4: Review and Reflect
After the interview, ask yourself: “Am I comfortable with the answers provided? Does the agent have experience in my location of interest? Do they seem knowledgeable and passionate about their work?” The most important question is, “Do I like this person?” Communication is key when buying and selling property in Costa Rica, so you’ll want to work with someone you feel comfortable with and trust that they have your best interests in mind. You may even end up forming a friendship for years to come.
Step 5: Get Ready for the Ball
Once you’ve reviewed the roster and chosen the realtor you feel most comfortable with, it’s time to invite them to the ball. If you’re selling a property, you’ll need to decide if you want to commit to an exclusivity agreement. While it may seem like you’ll have better odds if you’re non-exclusive with one realtor, Prince Charming may prefer to keep his options open, after all! However, and this is important, an exclusive sale agreement comes with benefits.
Most real estate agents aren’t going to invest in advertising if there’s a chance another agent might sell the property. The other agent could feel the same way, resulting in neither agent marketing your property. Having more than one realtor involved in selling your property does not mean you will get more buyers.
Also, to be clear, an exclusive listing agreement does not mean only the agent can sell the property – it means that they are solely working for you. They will market your property and gather all the legal information that is needed. They will also work with your legal team, the escrow agency, the inspector, and so on, to ensure your property closes the sale once an offer is presented and executed.
Here in Costa Rica, many sellers think this is the way to go, but In reality, it takes longer to sell your property. It’s much more productive to have one motivated and committed agent whose livelihood depends on selling your property and who will pull out all the stops to get it done.
Is Your Costa Rica Real Estate Agent Registered?
As mentioned in our steps to finding the right real estate agent in the previous section, there are two questions you need to ask any real estate agent in Costa Rica before working with them.
The first question you should ask is if they’re registered with SUGEF. Now, you might be asking what “SUGEF” is and why registration is required for real estate agents. Well, let’s start there, then move on to more about the associations.
What is SUGEF?
This is the Spanish acronym for “Superintendencia General de Entidades Financieras” or the General Superintendent of Financial Institutions in English. This is the Costa Rica government agency that oversees all banking, including any Costa Rican company that receives third-party funds from abroad, such as escrow agencies and property managers. The main reason SUGEF has placed more types of businesses under its umbrella is to help prevent money laundering, drug trafficking, and funding of terrorists.
Within the last few years, SUGEF started adding different types of companies and occupations to the list requiring registration, including real estate agents and lawyers, among others. The requirements to register are also quite detailed and involve disclosing every real estate transaction made during the fiscal year. All information submitted to SUGEF must be entered into their web platform utilizing a digital signature.
Here’s an example list of items realtors are required to disclose to SUGEF:
- Whether real estate transactions are being done in their name or the name of Costa Rican Corporation.
- The number of transactions completed during the fiscal year.
- Whether the buyer(s) was/were a foreign or Costa Rica entity.
- Whether the buyer(s) was/were using a Costa Rican Corporation or their personal name.
- How many people are employed by the company and whether they receive social security benefits.
- What bank accounts and IBANs are associated with their real estate company.
- How many vendors are utilized to operate their business.
Costa Rica Real Estate Associations
Now onto the second question you should ask a prospective real estate agent in Costa Rica, which is if they’re a registered with at least one of the only two government-recognized real estate associations in Costa Rica: CRGAR (Costa Rica Global Association of Realtors) or CCCBR (Cámara de Corredores de Bienes Raices). They should also be an active member in good standing.
Why is this important? Well, would you get real estate advice from the cashier at the local grocery store? Or maybe your favorite bartender? Or the one I like the most, the tour guide with whom you spent the entire day doing ziplining, mud baths, and nature tours? I’m not knocking these folks – they have a service they provide and may do it extremely well, but real estate is not one of them.
A true professional will have taken the time and expense to learn the real estate laws of Costa Rica. As agents ourselves, we’ve taken courses and are required to take “continuing education” courses from these associations so we can properly guide our clients through the entire buying process.
So, our best advice to you is to use a proven real estate professional who can legally work in Costa Rica and can prove it by showing you their residency card that says “Libre Condicion” (Free of Conditions) or their citizenship card called a “Cedula”. They should also own property in Costa Rica, as it means two things: 1) Permanence and 2) They have the knowledge and experience needed to close a real estate deal in Costa Rica, so they can help you do the same.
Got More Questions? We’re Here to Answer!
We hope this helps with your search for the best realtor so you can live (or sell) happily ever after in beautiful Costa Rica! Be sure to check out our FAQs for more about living in Costa Rica.
P.S. If you’re already considering adding us to your list of prospective agents – and we sure hope you do! – you can knock out Steps 1 through 3 by reading more about our team and sending us a message. We can’t wait to help you find your little piece of paradise!
