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Costa Rica has never really had a well-functioning real estate MLS system. Real estate licensing is not mandatory in our beautiful country. This is why the two existing real estate boards have never been able to create one. Although, maybe it will happen soon…
What is a good real estate Multiple Listing Service (MLS system)?
In my opinion, a real estate MLS cannot function well without an IDX. Matthew Bushery explains very well what an IDX Is:
IDX is software used by real estate professionals to add MLS listings to their websites. It integrates every agent’s real estate listing from the MLS database into their own websites.
Below is an example of how an IDX shows all MLS property on a company website on the former Tierramax MLS in 2010.
Mandatory Real Estate Licensing
On the other hand, what can a real estate board offer the real estate profession if licensing is not mandatory? I received my real estate license in 2001 by taking a two-day Spanish course and receiving license #0984 without taking any exams. The course could have been in Chinese, and I would have had the same knowledge before and after the course.
After a dispute with a fellow agent, I turned in my license, and the CCBR was unwilling to intervene. The other agent and I—Daniel Langlois RIP—worked a lot together without the board after this dispute until Daniel passed away. In other words, the San José real estate board was not doing anything for its members that was worth paying for their annual membership, which was my reason for resigning.
Real estate developers
All real estate developers have their own salespeople (usually not licensed real estate agents) and do not work with agents (they don’t pay commissions). Therefore, you won’t find any new or under construction by real estate developers on any MLS. Before you deal with real estate developers, read this blog about what to watch out for.
Licensed agents
Often, especially on social media, you will see comments from expats that real estate agents are not licensed in Costa Rica.
THIS IS NOT TRUE
The CCCBR and the CRGAR have over 100 licensed agents each.
However, in my opinion, buyers and sellers of property in Costa Rica should only be interested in an agent’s knowledge and experience, not whether he or she is licensed. Besides, a license doesn’t make a person honest!
Your MLS Options
For an MLS to really function, you need an exclusive listing agreement between the seller and a listing agent. Then, the listing agent will list the property on his/her website and on the MLS (even without an IDX, as mentioned before). Now, buyers can have their own buyer’s agent, and the seller is represented by the listing agent. AND, all the listings are available to customers on an MLS website.
CCCBR – Cámara Costarricense de Corredores de Bienes Raíces – has not yet figured out that many property buyers and sellers in Costa Rica speak English. Their website and MLS are Spanish only. Also, they allow multiple agents to list the same property, so you’ll find many duplicate properties, often at different prices.
CRGAR – Costa Rica Global Association of REALTORS® – where they teach you how to become a NAR agent (in the United States) and where many agents don’t even speak Spanish (the local language). Their website states that they have an MLS starting in 2022, but they don’t have any links there. Some of their agents do use this PropertyShelf MLS and its copy.
Omni MLS – They seem connected with the CRGAR now but are still not fully integrated. They do have the option for agents to use the IDX, as discussed above.
American-European Real Estate Group – I started the American-European MLS in 1995. We have one or two members in each area of the country and 29 agencies from coast to coast. Some of our agents are licensed by the CCCBR, and others by CRGAR.
Agents work together
Because there is no centralized board with the same rules and regulations, many independent agents and real estate companies that work only in the local market are not used to working together. That makes access to certain listings a lot more complicated.
That is also the reason.
What is Real Estate MLS
A good real estate MLS is a well-organized listing system where you can search for property for sale in a particular area with all the correct information and prices. That means that agents and agencies, through their websites, can show their exclusive listings and every other listing within the MLS system. These listings will not show who the listing agent is and oblige a buyer to hire the agency you contacted as a buyer’s agent. The buyer’s agent will contact the listing agent to set up showings, and agents must share all the necessary property information.
Unfortunately, the system is no good if the MLS does not have an internal CRM (Customer Relationship Management) system that obliges buyers’ agents, listing agents, and their clients to connect and work together. In my experience with TierraMax, listing agents wouldn’t respond, and buyer’s agents often didn’t follow up on the leads. That was the reason Tierramax didn’t function in 2010.
Open listings and exclusive listings
An MLS system created for the Costa Rican real estate market is necessary because everything functions differently here. In most areas, real estate agents use an open listing system rather than exclusive listings. Because many agents sell the same properties, often at different prices.
Only in beach towns like Jaco Beach and Tamarindo do professional real estate agents use exclusive listings to protect themselves from losing a property sale because a bartender or a taxi driver got ahead of them. Second, we have no addresses, and the real sales prices are not shown at closing, so there are no comps.
12,000 Real estate agents
In the Central Valley, you will find probably 12,000 real estate agents, including housewives, waiters, masseuses, gardeners, and professional agents. This makes it difficult for the buyer and seller to know which way to turn. I think it’s impressive why anyone in his/her right mind would want to buy a house from an untrained real estate agent. Many buyers and sellers do not understand the value of a good real estate agent until they meet one.
Maybe one day, if they get their MLS to work, I will sign up for a real estate board again. But as long as real estate board-affiliated agents do not show each other’s properties, I don’t see that happening. I will celebrate the day once they have good rules and regulations.
Buying or selling real estate in Costa Rica? Then I invite you to contact us!
