Do you currently own a property in Costa Rica and thinking about selling?
You own a property in Costa Rica and you want to sell, ok now what?
As a seller, you have options in Costa Rica to sell your property. You can try to sell the property yourself or you can hire a professional.
Beware, there is no official MLS here!!! (Multiple Listing Service)
It is very important you "click" with the agent of your choice as he/she will be the one representing you.
Also know that a good agent will take the time and "interview" you to make sure that they can properly represent you and your property. They should ask a lot of questions as well.
The agent needs to come visit the property so they can properly assess the value and get familiar with the property. After the initial visit to the home, the agent should prepare a "listing presentation" for you and in it, you should see a few properties that recently sold (and/or currently listed) that can be considered "comps" for your property and a suggested list price for your property.
Now here is the tricky part, agreeing on a price with your agent. Even though you may feel your home has a higher value then what your agent's research reveals, keep in mind, they do this for a living and have a good understanding of the current market conditions. (example telling your agent "well, I have $300,000 in to the property so that is what I need to get for it" does not mean that the current market supports that)
Now that you have narrowed your search down to the agent (or the team) you would like to work with, your next decision will be between an "open" (or non-exclusive) listing and an "exclusive" listing.
Now it's time for your agent to get to work!
They will coordinate showings with the appropriate person (if needed)
Your agent presents you with an offer...now what?
Time to review the offer and read all the details!
Here in Costa Rica, not only the price can get negotiated, also the closing costs (either split 50/50 between Buyer and Seller or paid in full by Buyer). Closing costs typically range around 4% (plus sales tax)
While reading the offer, you want to make sure that
your property information is correct (FINCA and PLANO numbers).
Verify your personal information; your name, passport (cedula) number, corporation name and ID.
Pay attention to how much money will be deposited in to the escrow account (of buyers choice) and when the money will become non-refundable (typically after the due diligence period)
Discuss the offer with your agent and suggest acceptance or counter offer. (make sure you sign all pages of the offer and date)
Great! The buyer and you agree on all the terms.
Once the contract is mutually executed, you are officially under contract for your property.
Time starts ticking for the buyer and his/her attorney to;
schedule a home inspection (if applicable),
open the escrow account
wire the earnest money
start the due diligence process.
Once the earnest money is in the escrow account, your agent will send you an escrow receipt.
The buyer signs off on the due diligence report from his/her attorney.
Your agent will send an email introduction between yourself and the escrow company as you will have to complete their paperwork to receive your funds.
Your agent needs to prepare a "closing statement" which is a financial statement for all the funds. It will show all moneys coming to you, pro-rations (for electric, water, HOA dues, taxes,..), commissions for both buyers agent and your agent...
Make sure you understand this document. (if not, ask your agent to explain all line items)
Your agent will send this "Closing statement" to the buyers agent and the escrow company who will take all the information from this document to create their "Exhibit A" (their version of the closing statement).
You will need to sign the closing statement and Exhibit A.
At time of closing, the deed will be read and signed by both the buyer (or their representative) and you (or your representative).
Once signed, the escrow agent will release all the funds according to the "closing statement" and "Exhibit A"
And they will send you a confirmation with the wire receipt of your incoming funds. (BEST part!!)
The closing attorney (buyers attorney) will present the deed to the National Registry where the deed will be recorded under the new owners name or corporation. This can take up to 10 days.
After this process is completed, your agent can pull the property information from the National Registry to show that it is no longer in your name (or your corporation's name) .
Congratulations...you successfully sold your property!!