Pricing is a tricky thing in Costa Rica. Gone are the days when retirees and investors from abroad could snap up beachfront (or even ocean view) property from a cattle rancher for $30,000. More likely today, that cattle rancher will look you up and down and ask for $2 million. He figures it’s worth a shot: You might be working for Mel Gibson, who bought a large farm in Guanacaste. That is to say, there is definitely a gringo price for everything, and it’ll probably be the first one you get quoted, regardless of whether the seller is a local or a foreigner. The reason for this is that it often pays off. A buyer from Connecticut hears that ocean view lots abutting a national park are selling for “only” $200,000, and maybe he’ll slap down cash for one, sight unseen. Later he’ll find out that there are hundreds – even thousands – such lots, and while $200,000 is a pretty good price in Florida or Manhattan, it’s a little steep for many places in Costa Rica. Do not be this type of retiree or investor. Make sure the price you’re negotiating over is a decent one. The increasing maturity of the Costa Rican real estate market means, first of all, that there are probably plenty of sales going on in the area where you’re looking to buy. Get those numbers (called “comparables”) from your broker before you start negotiating. And don’t settle for vague-sounding claims of so-and-so buying such-and-such a property over there for such-and-such amount. In addition to coffee, bananas and sugar cane, Costa Rica is great at sprouting rumors, but you should base your negotiating position on documented numbers whenever possible. Second of all, the burgeoning maturity of the Costa Rican market means that there are lots and lots of options, and the convergence of an unprecedented amount of construction with a financial downturn in the United States means Costa Rica is becoming a buyer’s market. Take any hype about “one of a kind” deals that are “going fast” with a very large grain of salt. Certain parts of the country are absolutely covered with developments and “for sale” signs, and it would be a rare and precious piece of land that you couldn’t walk away from if the price were too high. As in other real estate markets, formal price negotiations should take place through your broker. The seller’s lawyer will present the asking price and your broker responds with a counter offer that will contain all the conditions you might have for the purchase – for example, any work you want done on the property or house, the time frame for payment or financing, the deposit and length of time necessary to allow your lawyer to carry out due diligence, etc. Remember all of the above you should be able to negotiate a fair price for your retirement home. This blog will be continued.