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Sellers often ask me, “What can I sell my Cariari home for?” The Costa Rica real estate market is quite vibrant. Like other markets, it can move up or down quite suddenly, as many have witnessed. Nonetheless, prices of properties here don’t move much most of the time. There are several reasons, so learn more about CMAs in this blog.
It’s important to understand that we don’t have a real MLS (multiple listing system) to use as a guide for comparable properties for sale in the same neighborhood. So, how do you determine a Cariari home’s market value?
Usually, a seller already has a price in mind. Their expectations are sometimes quite dead-on and sometimes too low. But in most cases, sellers want way too much money for their home.
I’ve heard all the reasoning:
- “But I paid so much for it,”
- “I really need that much to buy a new house for myself and a condo for my daughter,”
- “But I’ve put so much money into renovations,” etc.
I always tell them, “You can choose the paint, the curtains, the lamps, and the home, but you can’t choose the price of your own home.” As unpalatable as it might seem to the seller, the marketplace decides the price. The market is a slave to supply and demand.
A good pulse
Ahh, well, that’s where your experienced real estate agent comes in to help you out. If the agent is familiar with the area, in my case, Cariari, and Belen, then the agent will have an excellent pulse on the proper pricing of the property for sale. My name is Shell Johanson, and I’ve sold properties in Cariari for over 25 years. I Live and love Cariari and know what is going on here.
A fast guide
A fast price guide to compare properties one can always rely on is what’s called ‘replacement value.’ Many banks use this kind of estimate because of the lack of comparable properties. In most cases, it is a great tool and easy to work with:
- X amount of m2 or ft2 of construction at such and so price (this is where the knowledge of your agent is so essential; construction costs vary from $80 – $250/ft2),
- Deduct the number of years from that value, usually 2% each year, depending on upgrades,
- A building lot of dimensions at such and so price (in Cariari, lot prices run between $25-$55/ft2 depending on the size and the location),
- Swimming pool cost (which runs between $25 – $50k, depending on the size and the terrace),
- Cost of architects and permits, etc.,
Intrinsic value
Many properties for sale in our country have an intrinsic value that is hard to define. But it does add to the value of that home. So, by all means, ask several real estate agents in the area and decide for yourself as to their accuracy.
Most agents will just list at the price that the seller suggests. Other real estate agents are only interested in making an ‘easy killing, ‘ so they will lower the sales price to do so. I can assure you that your Cariari ‘GoDutch’ agent wants to work hard to earn the commission and make it a fair deal. I do know what fair values are all about.
You might not always like what I have to say about the price of your home, but I assure you I know my stuff. A badly priced home does not sell and just sits there, costing you money.
Start with the right foot
Remember that the first few months of a sale are always the most important. So, overpricing your property doesn’t benefit either of us. It’s a waste of time and effort.
Contact me now for a FREE appraisal of your Cariari property before you put it on the market. I will explain what I can do for you, and I’d love to sell your Cariari home for the right price!
