My Real Estate Education

For a few months in 2005, I worked assisting a real estate agent while I was learning about Costa Rica. This turned out to be an eye opener in what goes on in real estate. After seeing the general lack of ethics in the real estate industry and on the part of their attorneys I disassociated myself from this end of the business.  While the experience “from the inside” was a valuable eye opener, I regret seeing the damage this industry causes in peoples lives, including mine.

You must, at all times remind yourself that real estate agents are in business to make money and the only time they make money is when they sell something. While each agent will have their own style they all follow a similar pattern for all types of sales.  The last step is particularly prevalent in Costa Rica as you basically have no recourse.

• Gain your confidence - Almost all are very pleasant people when you meet them.  Their act must be polished in order to gain your confidence.  Some go as far as cultivating a friendship.  Just remember that they are cultivating a commission at the same time.
• Remove obstacles - Common examples are things like saying that utilities don’t cost much to bring in or don’t worry about getting a new plano or even, “I have done all of the due diligence.”
• Create a sense of urgency - This is the “Call to action” and the purpose is to make you feel that if you don’t act immediately, you will loose the property. Common lines are I have to show this to another very interested client tomorrow. Or The seller has another offer pending and needs to make a decision now.
• Close the deal as quickly as possible - Sometimes an agent will ask for a Power of Attorney - I strongly advise against ever giving an agent the power to make a decision for you.  Most agents prefer that you use their attorney. Likewise, you need get your own attorney and not use one recommended to you by your agent.
• Deny All Responsibility - Once the deal is done, no matter what you heard or were told; whether you think you have a new friend or whatever - it doesn’t matter.  The agent will not be there to help you through your troubles.

There is an old rule that particularly applies here: Friends and business don’t mix.

If there is one piece of advice I can give is: Never let your guard down.  In business, especially in Costa Rica, NEVER TRUST ANYONE without independently verifying their advice. This especially applies to real estate agents.