» Selling Real Estate

Annual tax on commercial entities

Friday, March 23rd, 2012

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Bahia Azul (11)Recently an annual tax on Costa Rica corporations was passed (act no. 9024) to raise money for the Ministry of Public Security.  This tax will take effect on April 1st, 2012. 

How much are we talking about?  The due payment will depend on whether your corporation is active or inactive. 

If your company is registered before the tax authorities it is considered active.  Your tax will be somewhere between $265 to 350.

If your company is not registered before the tax authorities and it’s sole purpose is to hold assets (e.i. Your beautiful beachfront condo in Jaco Beach) then it is considered inactive.  your tax will be somewhere between $135 to $175.

If you have a company that you do not need you can dissolve it.  Otherwise the tax will be due in April of every year. 

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Buyers for your listing

Monday, September 12th, 2011

REMAX Jaco Beach Costa Rica Connecction

Home | About Us | Buy Property | Sell Property | Contact Us

Dear Seller,
This has been a crazy month but a good one. I apologize for the delay or lack of communication and I wanted to take this opportunity to update you since we have your listing and appreciate business.

For the past 5 years I have been working up to the position I now have with International Living magazine as the preferred broker for the Central Pacific and Central Valley of Costa Rica. The magazine holds “Invest and Live Internationally” conferences every year in San Jose which gives me an opportunity to engage hundreds of potential buyers organize buying tours and feature our listings.

This year’s conference just passed and my last private tour tomorrow so it looks like a I will be able to catch my breath very soon. The conference had a little over 250 attendees. We had group tours including 75 potential buyers and about 10 more that signed up for individual tours. We are already working on five offers and we are just beginning the follow up stage with the other contacts we made. I feel confident we will see many more deals as a result.

I was also invited to join international living in Las Vegas next month (October 6-8) where I will be the only realtor representing Costa Rica. As you can imagine that is a great privilege and opportunity to get your property in front of even more clients.

Please take this opportunity to consider revamping your listing. Here are some suggestions:

1. Make sure your listing price is justified and based on the true market value. (If you don’t want to sell for what the market value it might be better to take you listing off the market for a few months and then renew it later)

2. Review your listing description and pictures. You know your property better than anyone. Brainstorm the features that made you fall in love with the property and make sure they are highlighted. Send us any updates and we will be glad to post them.

3. The extra bit to make your property stand out. Right now we have almost 1000 listing in the central pacific alone. Do a little extra by taking a video yourself talking about the highlights of the property. For example: Tell potential buyers why you fall in love with the property, the area etc. Tell them why you are selling and how sad you are to let such a good property go. Send is the video file and we will use it as a tool to highlight your listings.

We are working hard and investing a lot of time and resources to give your listing the best exposure possible. If you have any questions feel free to contact our office. I will get back to you asap or have Lucy, my life support system in the office address your questions.

Estimado Vendedor,

Este ha sido un mes muy ocupado pero muy bueno. Les ofrezco mis disculpas por el retraso o la falta de comunicación, quisiera aprovechar esta oportunidad para ponerle al día ya que contamos con su listado y apreciamos la oportunidad de ayudarle a venderlo.

Durante los últimos 5 años he estado trabajando y he sido elegida por la revista International Living como la agente preferida para el área Pacífico Central y Valle Central de Costa Rica. La revista “Invierta y Viva el Ámbito Internacional” ofrece conferencias cada año en San José, en la cual tengo la oportunidad de participar con cientos de compradores potenciales, organizando tours de Bienes Raíces teniendo como base las propiedades que tenemos a la venta.

La conferencia de este año acaba de pasar y mi último Tour privado será mañana por lo que parece que pronto seré capaz de recuperar el aliento de nuevo. Esta conferencia tuvo la participación de un poco más de 250 asistentes. Hemos tenido tours con asistencia de 75 compradores potenciales y más de 10 se registraron para viajes individuales privados. Ya estamos trabajando en cinco ofertas y apenas estamos empezando la etapa de seguimiento con el resto de contactos que hemos hecho. Estoy seguro de que veremos más ofertas como resultado.

También he sido invitada a unirme a la próxima Conferencia de International Living en Las Vegas el próximo mes de octubre (del 6 al 8 ) en el cual seré la única agente de Bienes Raíces que represente a Costa Rica. Como podrán imaginarse es un gran privilegio y otra oportunidad más de exponer su propiedad frente a los clientes. Por favor tome esta oportunidad para revisar su listado y realizar algunos cambios de ser necesario. Adjunto algunas sugerencias:

1. Asegúrese de que el precio de su listado este justificado y basado acorde con el verdadero valor del mercado. (Si usted no quiere vender según el valor de este seria mejor que su propiedad este fuera del mercado por algunos meses para luego enlistarla otra vez) 2. Revise la información de su listado y fotografías.Usted conoce su propiedad mejor que nadie. Envíenos sus sugerencias aquellos detalles que Usted considera son esenciales para que los clientes se enamoren de su propiedad y la resalten. Envíenos cualquier actualización y estaremos encantados de hacer los cambios correspondientes. 3. Ese detalle extra para hacer que su propiedad resalte. En este momento tenemos casi 1000 propiedades solamente el Pacífico Central. Tal vez un video cortó personalizado por ustedes sobre los detalles importantes que destacan a su propiedad. Por ejemplo: Contarle a los compradores potenciales el porque usted se enamoro de su propiedad, el área, etc. Decirles por qué usted está vendiendo y lo emotivo que es tener que vender su propiedad. Envíenos el vídeo y lo utilizaremos como una herramienta mas para así resaltar su propiedad. Estamos trabajando duro e invirtiendo una gran cantidad de tiempo y recursos para darle a su listado la mejor exposición posible. Si usted tiene alguna pregunta no dude en ponerse en contacto con nuestra oficina. Estaré en contacto con Usted lo antes posible o pueden contactar a Lucy, mi mano derecha en la oficina para contestar sus preguntas.

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Vacation Rentals & Property Management

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Putting a price tag on your property: Pricing is all about supply and demand and it is the most important factor to consider when selling your Costa Rican property. You do not want to overprice it or sell yourself short so here are a few guidelines that will help as you consider what price tag you should put on your condo, house or lot Read more about this article

Comparable Listings and Sales: Investigate similar properties in your area that recently sold. Compare similar square footage, locations (example: Jaco, Hermosa, Esterillos) and features… Read more about this article…

Preparing your home for sale: You can help get the results you want by staging your home. Staging is not about redecorating your entire home. It is about rearranging what you do have and making a few improvements to appeal to more buyers.A staged home will sell, on average, for 17% more than an unstaged home. – U.S. Department of Housing and Urban Development Read more about this article…

Sellers Handling a Lowball Offer: In today’s market, sellers commonly have to deal with the infamous Lowball offer. The best strategy is to keep emotions out of the mix and “consider it” as a starting point for negotiations. Regardless of what kind of offers you receive, you can’t take it personally. Your motivation is to sell your property and the highest amount the current market will allow for! Start by asking how the offer compares with recent sales. Read more about this article…

Embrace Life,

Hannah Rico Fletcher

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Broker/Owner

hannah@jacobeachinfo.com

www.facebook.com/jacoremax

8814-5073 CR cell

2643-6010 office ext. 107

714-369-8133 US/Canada

We are what we repeatedly do. Excellence, then, is not an act, but a habit. – Aristotle

RE/MAX No. 1 in virtually every way

Thursday, August 18th, 2011

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The unmatched competitive advantages of affiliation.  For instance RE/MAX rated: 
 No. 1    • No. 1 in market share.
     • No. 1 in agent productivity.
     • No. 1 in brand name awareness.
     • No. 1 in advertising.
     • No. 1 in lead generation.
     • No. 1 in professional education.
     • No. 1 in the minds of buyers and sellers.

received two awards from J.D. Power and Associates this last July for generating the highest overall satisfaction among buyers and sellers. That’s quite an honor, especially at a time when transactions can be so complex, time-consuming and frustrating for the people involved. The fact that our Sales Associates’ efforts were recognized by both groups of consumers made the achievement doubly impressive.

Just last week,  received tremendously positive rates from an extensive consumer survey conducted by Synovate, one of the leading researchers in the field. The results where a reflection of how we rate in the eyes of consumers.  In the end it is clear that Brand affiliation matters, consumers know and trust more than any other national franchise, and industry-leading awareness generates additional leads and business for our Associates.  That’s powerful stuff, especially these days.

Here are just a few particulars from this survey:

  • Bal15• In unaided awareness, 34% of the consumers mentioned as "top of mind." That number easily beat Century 21 (25%), was triple Coldwell Banker (11%) and was 10 times better than Prudential (4%) and Keller Williams (3%). Overall, 95% of the survey participants were aware of the RE/MAX name. Not to single anyone out, but less than 50% of the consumers even knew Keller Williams existed.
  • • Similarly, 30% of the consumers recalled seeing or hearing a ad recently, a figure triple that of Century 21 (12%), six times greater than Coldwell Banker (5%), 15 times greater than Prudential (2%) and 30 times greater than Keller Williams (1%).
  • • When asked what brand they would most likely consider if buying or selling in the next two years, 28% of the consumers chose . Only Coldwell Banker and Century 21 scored in double digits, and the figure nearly quadrupled the results of Prudential and Keller Williams.

There is plenty more gold within this study ( is the brand consumers would most likely recommend to a friend or relative, for instance, and "company image" is the leading reason sellers choose a agent), and our creative team will be developing materials for you to use.

continues to be the best option for the industry’s most capable agents. We are the No. 1 brand in real estate.

to see how you can have the team and Name work for you.

Putting a price tag on your property

Wednesday, June 22nd, 2011

Pricing is all about supply and demand and it is the most important factor to consider when selling your Costa Rican property. You do not want to overprice it or sell yourself short so here are a few guidelines that will help as you consider what price tag you should put on your condo, house or lot:

Comparable Listings and Sales:  Investigate similar properties in your area that recently sold. Compare similar square footage, locations (example: Jaco, Hermosa, Esterillos) and features. Adjust pricing for lot size variances, configuration and amenities /upgrades. The price per square foot rises as the size decreases and it decreases as the size increases, meaning larger homes have a smaller square foot cost and smaller homes have a larger square foot cost. to search through other listings in the Central Pacific of Costa Rica.

Even though Costa Rica does not have a MLS, Multiple Listing System, your RE/MAX Jaco agent can help you compare original list price to final sales price to determine price reductions. 

Active Listings: These matter only as they compare to your listing, but bear in mind that sellers can ask whatever they want.

Market Dependent Pricing: Same house, three different prices. After you have collected all your data, the next step is to analyze the data based on market conditions. Contact us if we can help.

Property Tax in Costa Rica

Wednesday, June 8th, 2011

Jaco Sunset from South MountianThe yearly property Tax in Costa Rica is only 0.25 percent of the registered value of the property. This is remarkably lower than most North American countries and one of the benefits of buying real estate in Costa Rica. 

Annual payments are most common, but it is also possible to make biannual or quarterly payments.  If you are able pay the yearly fee in advance you can take advantage of the prepayment discount which is normal offered by the local government.

Capital Gain Tax
Along with the low property taxes, there is no capital gains tax in Costa Rica.  This is another factor that makes real estate investment a viable opportunity for foreign investors and retirees alike. 

Costa Rica is attractive to foreign investment and there has been a vast increase over the past decade.  The stable government and the financial policies have helped to boost the local economy.  The real estate tax law sallow for any investor, whether local or foreign to make gains through buying and selling real estate.

Transfer tax

Jaco sunset 2There is a standard tax of 1.5% of the value of the property when selling real estate in Costa Rica.  In addition, there are stamps that need to accompany the final title deed, which is an additional 1% of the recorded real estate value.

This tax can be avoided when the property is purchased in a corporation. Your real estate lawyer can help advice you in this matter. Contact us for help finding a reputable real estate lawyer here in Costa Rica.

Real Estate Sales tax

At closing, a real estate sales tax, equaling approximately 1% of the value of the property, is also charged. Normally this tax is charged as part of the closing cost and split evenly between the buyer and seller. For more information on closing cost click here.

Preparing your home for sale

Thursday, June 2nd, 2011

REMAX Jaco Home for sale listing L712You can help get the results you want by staging your home. Staging is not about redecorating your entire home. It is about rearranging what you do have and making a few improvements to appeal to more buyers.

A staged home will sell, on average, for 17% more than an unstaged home. – U.S. Department of Housing and Urban Development

Here are a few ideas to make this process easier.

Make the House Shine A home in immaculate condition sells more quickly – and for more. Wash windows inside and out, make sure kitchen and bath features gleam, shampoo or replace carpeting, clean and dust throughout, take care of any pet odors.REMAX Jaco Hermosa Palms house for sale

De-Personalize You want buyers to imagine themselves living in your home. Pack up those family heirlooms and personal photographs.

De-Clutter Less is more in creating home appeal. Keep counters free of personal items, pare furnishings down to the bare essentials, pack up those cute knickknacks.

Make Minor Repairs Don’t let maintenance shortcomings affect the sale. Patch any holes in the walls. Consider painting them in a neutral color. Replace cracked floor or counter tiles, fix leaky faucets and doors that don’t close properly, replace burned-out light bulbs.

Remove Favorite Items If buyers don’t see something, they won’t want it to be part of the deal. Remove fixtures or window coverings now if you’re going to take them with you.

REMAX Jaco Daystar Beachfront Condo for SaleRearrange Closets and Cabinets Tidy, organized closets make a positive statement about your home. Keep medicines and other personal items out of sight, pack away much of your clothing, neatly arrange shoes and shelf items.

Show Your Home in the Best Light Your home needs to be at its friendliest when buyers go through it. Open the drapes and let the sunshine in, have fresh flowers on display, set a comfortable temperature, make sure it smells fresh.

Contact your local RE/MAX Jaco agent for more insight on how to prepare your home for sale in Costa Rica.  We cover the whole central pacific.

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Foreigner Rights in a Costa Rica Market

Thursday, April 28th, 2011

Costa Rica’s plan for economic expansion of the country along with the continued development of mid- to high-end residences, accommodations, services and amenities will continue to enhance the overall economic stability of the area. In addition to financial security, many ex-patriots, Europeans and Canadians are moving to Costa Rica due to the lower cost of living, which includes health care, dentistry and up-to-date technology in comparison to the U.S., but costing an average of 50-70 percent less.IMGP3891

The Costa Rican Constitution fully protects foreign ownership of property making it a safe emerging market for international real estate investors.  Purchasers of property can also obtain a title guarantee from internationally recognized title insurance companies.

Nonetheless, those who purchase in Costa Rica should receive professional advice from both a licensed Realtor and a qualified real estate attorney to assurance the transaction is handled correctly and your investment is safe.

Hot deals to consider:

Jaco House, Walk to the beach:

Casa Palmas2 bedroom, half a block to Jaco Beach, 562 meters (6050 square feet) of landlisted at $175,000. view more

Beachfront Condos:

Diamante Del Sol (4)La Paloma Blanca F42 bedroom, 4th floor with ocean view listed at $254,500 with 70% financing. view more

Bahia Azul 10C – 2 bedroom, 3rd floor with private roof-top terrace, ocean view, listed at $275,000 and motivated. view more

The Palms 502 – 2 bedroom absolute ocean front on the 5th floor listed at $350,000 and motivated. just reduced view more

Bahia Encantada J1 – 3 bedroom 1st floor with ocean view listed at $359,000. just reduced view more

Diamante Del Sol 2, 302 – 2 bedroom absolute ocean front on the 3rd floor listed at $410,000 and motivated. Financing available. view more

A Sunny Forecast for Tourism in Costa Rica

Thursday, April 28th, 2011

See RE/MAX Real estate listings

Enjoying Punta Leona White Sand Beach

     Tourism numbers are up and that is evident by the number of patrons on the beach and strolling through Jaco Beach.  Costa Rica’s tourism industry has experienced cloudy skies since 2008 which was the best year to date.  After suffering through a rough 2009 the industry is now encouraged by the figures released by Instituto Costarricense de Turismo (ICT), Costa Rica’s tourism board.      

     January through May already brought 90,000 more tourist arrivals than the same period last year which saw 866,488 tourists.  The forecast is promisingly brighter for the months to come.     

CostaRicaTourismStatistics

Costa Rica Tourism Arrivals

     Costa Rica has always drawn visitors searching for tropical beaches, adventure, and the friendly culture but we did not escape from the hardship of the global market.  Sales and rentals have been on the upturn since October 2009 and now people are more confident and willing to invest in their quality of life including vacations and destination properties.    

See RE/MAX Real estate listings

Sellers Handling a Lowball Offer

Wednesday, February 2nd, 2011

In today’s market, sellers commonly have to deal with the infamous Lowball offer.  The best strategy is to keep emotions out of the mix and “consider it” as a starting point for negotiations.  Regardless of what kind of offers you receive, you can’t take it personally. 

Your motivation is to sell your property and the highest amount the current market will allow for!  Start by asking how the offer compares with recent sales.  This will assure you are negotiating with realist expectations.  Many times a low offer is not an indication of what your property is worth, but rather what the buyer can afford.

Price is not the only way to turn such a situation around in your favor to achieve a successful sale.  Try to find wiggle room by negotiating the terms, here are a few questions to ask:

Is the buyer making a cash offer?  Cash offers are very rare in this market.  If not, try to negotiate as much down as possible.photo_28128_20110126

Is the buyer willing to close quickly?   The average closing time is 30 to 45 days but it only takes the lawyers an average of 15 business days to finish the due diligence process.  A quicker closing can help offset the extra holding cost you would otherwise be paying.

Is the buyer willing to paying closing cost?  Normally closing cost are split equally between the buyer and seller and can add up to a total of 5.2% of the finial.  This may be a good way to negotiate 2.1% extra.

Is the buyer willing to take the property AS IS?  Normally buyers will want to do a walk through and may request repairs or a punch list?  Adding a “AS IS” clause to the offer can save you both money and time.

You have nothing to lose if you property has been on the market longer then 6 months and you are not getting a lot of showings.  Do whatever you can to keep the negotiations open and the terms in your favor. 

With a little teamwork, a conclusion that everyone’s happy with can be obtained.

Contact us if you would like us to help you negotiate the sell of your property.