The Importance of Considering Resell Value
I often hear clients say that they would never sell the Costa Rica home they just purchased...
However, I live by the old adage, " never say never."
Because, more than likely, there will come a time (maybe sooner than you could possibly imagine) when you will call me and say, "we're thinking about listing our property."
I'll remind you that you once told me you'd never sell. And you'll more than likely tell me one of the following...
* we need to be closer to family back home
* we've had a medical emergency
* it's too hot here
* it's too expensive here
* there are too many bugs
* we didn't know how frustrating the culture change would be
* we miss home!
And so forth and so on.
Hopefully, when you bought with me you followed my advice and kept the potential resell potential in mind.
Because all to often, you all don't.
Every buyer has their own unique set of tastes when it comes to real estate. And of course you'll look to buy something that appeals to your tastes.
But if your tastes are so unique that no one else on planet earth shares them, then you run the risk of buying something you'll never be able to sell.
In order to accurately assess resell value you really need to understand the market you're buying into. Along those lines, it really pays to have an experienced buyer's agent who will help you understand that market.
If you're only dealing with seller agents, since their job is only to sell you the property they're representing, they'll probably not give you the reasons that property might be lacking in resell potential.
In my area of expertise, the Costa Rica southern zone, specifically the Costa Ballena and the mountains of Perez Zeledon, there are some market particularities that should be taken into account.
For instance, in the Perez Zeledon market, there are essentially two distinct markets, a "tico" (or local) market and one with properties that cater to expats, or foreigners.
Expats in the Perez market generally buy a particular type of mountain property, usually in areas well outside of urban.
I am very careful to list the kind of properties my predominantly North American buyers will buy. And you as the buyer should take that into account when assessing resell value.
There are also certain property issues that crop up in my market frequently that can affect resell value.
It's surprising to my foreign buyers that many mountain homes were built years ago without proper permits. Doesn't necessarily mean there is anything wrong with the home, but lack of a permit will become an issue if and when you try to sell the home.
Lack of a legal water source is another common issue. The legalities of water in Costa Rica are complicated. You can read this post I wrote a while back on that issue.
Now, not having a "legal" water source doesn't mean the property doesn't have superb potable water. It just means the source has not been properly legalized. And that will be an issue if and when you try to sell, unless you take steps and spend the money to rectify the issue. And that could be costly.
Those are just a few of the things to carefully consider when assessing resell value.
In a nutshell location, quality of build, general aesthetic appeal, and cleanliness in terms of legally having all i's dotted and t's crossed, are the categories of most important consideration when assessing resell value.
Oh and also the opinion of your experienced buyer's agent!
Please listen carefully and take note of that very important opinion, as long as it's unbiased, even if it offends your sense of taste. The agent should know what will sell in his or her market, since he or she makes a living doing just that...
So, pay attention!
You'll potentially be very thankful later.
