Lately, we have been receiving quite a few requests to sell 5 bedroom homes. The problem is, they’re impossible to sell. Unless the price is extremely attractive!
There are several reasons why these 5 bedroom homes in Costa Rica are impossible to sell. Unless they’re a large luxury beach home that caters to the rich and famous.
Between 1960 and 1985, middle class and upper-middle-class families built large homes because they had large families. Not only did many have 3, 4 or 5 children, they often had mom or father in law live with them. Help was very affordable at the time, so many families had a nurse for the mom, a cook, a nanny, and a cleaning lady. It was customary they all lived in the same house.
Now, there is a huge shift in the real estate market in Costa Rica. The socioeconomics has changed tremendously, here as well as in other countries. And this is the reason we are asked to sell 5 bedroom homes so often.
It is important to note that 5 bedroom homes, built between 1960 and 1985 are located in a regular neighborhood and not in a condominium or a gated community.
6 Reasons
1. Too large
Very few families need and want such a large house anymore. Families are smaller now, with less or no need for the live-in maid(s).
2. Age
The baby boomers, who were born between 1945 and 1964, are an example of a demographic trend. They’re now moving from their large 5 bedroom home into a smaller condominium that offers better amenities for their age
3. Upkeep
The upkeep of a 5 bedroom home is tremendous, especially when you don’t use 75% of the home anymore. Millennials are not looking to upkeep a larger house than they really need.
4. TLC
Most of those 5 bedroom homes are now at least 34 years’ old, and they need a lot of TLC. Few buyers are interested in renovating such a large house.
5. No financing
Banks will not finance houses older than 25 – 30 years. A large percentage of the buyers are millennials, who need financing for their real estate purchase.
6. Other demographics
Millennials have one child or none. The LGBT community is another example of a demographic trend. Therefore, millennials and members of the LGBT community do not require more than a 2-bedroom home.
7. Security
In modern families, usually, both partners work. Therefore, they look for the security of a condominium.
The solution
In my opinion, the only solution is one that I have given before. Bring an architect that you trust well enough to do a good and affordable job for you. Ask the architect to turn your 5 bedroom house into as many apartments possible, without mayor TLC.
Live in one unit and create a nice rental income for yourself. Or, rent them all and move elsewhere.
Don’t waste your and a real estate agent’s time in trying to sell your house, unless you’re happy to sell for the value of the land.
Re you looking to purchase a 5 bedroom home in Costa Rica? We don’t have many on inventory, only those that are priced right. Contact the experts now.
The grammar of the Spanish version of this blog was checked and corrected by Wagner Freer of Spanish School for Residents and Expats. We strongly recommend this language school as your best choice to learn Spanish, click here to contact them.
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I DO want to remind our readers that we appreciate any referrals you can send us. Also, when talking about your home in Costa Rica, please remember the GoDutch Realty agents. We appreciate it.
