Protect Yourself (from your Agent)

Now that you have read some of the dirty tricks that some agents use, here are some facts that may help you in not making common mistakes:

• Your agent is in business to make money for himself, not to make sure you get the best buy.  Since there is no Multiple Listing Service, your agent can only show you what he or she knows about and does not have a true knowledge of what is really available for sale.
• Ask your agent point blank if they currently or ever have sold a property for more than the seller’s asking price. This practice is called “Net Listing” and is illegal in the US but is very common here.  Of course they can lie when you ask but I prefer to put them on the spot with a direct question than walking blindly down the path. If they do lie, their comments become part of the purchase transaction and they may be liable for future damages but only a good attorney can say for sure.
• If you are paying your agent, ask him if the buyer is paying him or anyone else a commission. Again they can lie but if you keep hammering, you might get a glimpse of the truth.  An honest agent should not mind answering these questions.
• Ask around for references about different agencies. If you are staying at a hotel, ask the owners - they probably have heard about the agent and can give you some references.  Ask ANY Gringo that you see on the streets.
• Call other agents and look at comparable properties. Remember, there is no common database or directory of what is available so each agent or agency will have their own selection of properties.
• If it sounds too good to be true then it usually is. Nobody gives anything away for free.
• Utilities are expensive to bring in. If water and electricity are not at the edge of the property (within 50 meters of where you want to build) talk to a contractor before you commit to buy!
• Electricity on a public road costs about $1,500 per post and posts are normally 60 meters apart. On private land the costs drops significantly but underground wiring to bring 200 amps (standard in the US) underground for 400 meters from the road was quoted at $64,000 installed.
• Water is less expensive if it is available. If you do not have municipal water at the property line, make sure you know where the water is coming from, and that it is potable.  If you are told it comes from a spring, make sure you know where the spring is and that you have a right to use the water.  Lastly, if you have any doubt, have the water checked.

Lastly, be leery of anyone that claims to know the secret to buying real estate or claims to be an expert.  Unless they have lived here 10+ years, they, like me, are just in the learning stages.