In recent days, by chance I saw a video on a social network of a person complaining about so many properties for sale in Costa Rica, as if such a thing was a bad thing. The truth is that there are many people with the conviction of being able to sell at high prices and thus ensure their old age. They also hope to settle debts or simply have a wealthy lifestyle.
I have met, first hand, many people who receive inheritances so they proceed to sell small lots and thus generate a constant income. On the other hand, there are investors who seek to accumulate properties in a wealth creation strategy to liquidate in the future by making a profit on that capital.
Currently, the real estate market seeks to acquire opportunities, so trying to sell at high prices is certainly a major challenge, but not impossible.
The recommendations when selling real estate, based on past experience of selling properties, whether they are farms or lots of land, are:
1) Sell below market price
Eating up the entire price margin is truly a bad sales tactic. Leave something on the table for the buyer. The main mistake of many property sellers is trying to eating the price up and not leaving the buyer’s possibility of winning on the investment. When selling, we must understand that many buyers seek to earn on the sale price in the future.
Therefore, I recommend seeking a full market study within a radius of 2 kilometers around, in urban areas, and 10 kilometers around, in rural areas. Also, sell with a 30% discount on the average price.
2) Offer payment facility
Trust people. In Costa Rica, security rights over properties are one of the few certain things and well-backed up for by the country’s legal system. So both of you can win.
3) Take financing into account
Do not be afraid to offer or accept financing proposals. Everything that is well written and negotiated to avoid surprises. So whoever sells can earn what a bank would earn, do not miss out on a sales opportunity.
4) Be open-minded
Be willing to receive other properties or some payment arrangement, so that you can keep a high price.
5) Make the shopping experience easier
Often times those who sell are not flexible in terms of the contract. As they are distrustful, they complicate the sales process. And they do it by putting lawyers who do not know what they are doing, asking for unnecessary requirements that do not generate value to the transaction or they include how many family members exist for their opinion.
6) Avoid negotiating with family members
Including the family in a transaction is one of the worst things a salesperson can do. Sell at the price and term that you consider best, do not ask opinions of people who are not in your shoes.
7) Have a sharing mindset
So far, you should know that, in any negotiation, both parties must win. Once you have this principle clear, do not feel that by giving up something you are losing at all. Actually, giving in in a negotiation generates more value and simplifies the shopping experience. And this latter phrase, simplifying the shopping experience, means being able to charge more expensively.
8) When negotiating property, seek advice from people who really know
Who are real financial advisers and not lawyers or real estate brokers. Usually, real estate brokers, trying to take care of their commission, hinder any negotiation process.
9) Lawyers are not good advisers
Believe it or not, many times lawyers are ignorant when it comes to contracts or real estate affairs. A number of lawyers mess things up because they just want to “steal the show” Usually, lawyers come to review a contract, but since they do not know the terms of the negotiation, they often try to get involved. In the end, your judgment does not serve that purpose.
10) Think in terms of who is going to buy; whoever sells is not that important in the sales transaction
Emphasize the following: focus your effort on the needs, aspirations, and dreams of your client, making it easier for him to manage the sale, and avoiding bringing unnecessary people into the transaction.
To conclude, in these times of global pandemic, almost anything can be sold at a great price!