Ambergris Caye, the most popular tourism spot in the country is home to 44% of all condo projects in the country. Placencia on the mainland has 31%. Combined, the two purchasing destinations make up 75% of the country’s condo market.

How much for a Belize condo?

Ambergris Caye is the most expensive location for condos with a median asking price of US $273 per square foot for ocean view and beachfront locations. Placencia comes in second at US $249. The median asking price for Belize condos for sale across all other parts of the country (including inland areas) is significantly lower at $186.

What amenities are Belize condo developers offering?

A characteristic of the market for Belize real estate, when compared to other countries in Central America, is smaller master plans and a more boutique style of development. There are fewer large-scale destination resorts for example.

We looked at condo projects with completed amenities and found the most common community master plan includes a multi-story condo building (2-5 floors), swimming pool (the most common amenity), restaurant and pier or dock. For condo projects still undergoing construction, this same pattern continues with yoga/spa centers being the most frequent additional amenity planned.

Completion ratios for condos in Belize

We looked at the balance of amenities offered by condo developers and found for every 2 completed amenities, 3 were still planned or in the process of being built. This ‘completion ratio’ of 2 to 3 is higher than in Nicaragua for example where we found the ratio to be 1:4 (i.e. for every project with a completed amenity, 4 were still planned).

While this is only one data point, it does underscore the view of most market watchers that Belize is less emerging, (and probably less ’speculative’ even), as a real estate destination than Nicaragua. We’ll be reviewing completion ratios for Costa Rica and Panama in later posts.  So stay tuned.

After the crisis

After a soft market in 2009 and early 2010 for Belize property, inventories are still high and vendors motivated. Buyers are treating asking prices as starting prices and are negotiating hard. Many are comparing developer-direct prices with the re-sale market (where end-user sells to end-user) to see if they can find motivated sellers with lower prices. Developers are slowly adjusting to the fact that it’s a new market for condos in Belize and the post-crisis real estate investor is here to stay.

Related posts:

1. Revealed: The state of the international real estate market in Belize
2. Do ocean view condos cost more in Ambergris Caye or Tamarindo?
3. Nicaragua real estate snapshot: Tola Riviera and Popoyo

The boom years for Panama City apartments (or condos) is well documented. The city’s status as the region’s most important financial center, its good transport links and shiny new infrastructure projects saw a flurry of investors snapping up apartments, mostly off-plan. Buyers arrived from well known destinations such as the US and Canada and from the more unusual, including Venezuela and Colombia.

But as the global financial crisis took hold, the whiff of oversupply grew stronger. The speculator who had been driving the market retreated, sales volumes dropped and a number of condo projects stalled or suspended operations completely.

Now, as we enter the second half of 2010, some market watchers are saying that it’s a good time for investors to come back into the Panama City apartment market. That inventories are high, sellers are motivated and it’s time to push for a bargain.

Unfortunately accurate price and transaction data is hard to find in Panama – something we’ve written about before. Often the best insight into what the market is doing comes from special offers at individual projects, a review of asking prices (ideally compared with previous years) and feedback from real estate agents on the ground.

After reviewing our database of Panama property prices and contacting local agents we were able to find examples of completed apartments priced at 30-40% below 2008 levels. These falls are not across-the-board as some developers are holding their asking prices firm. It may be a buyer’s market for apartments in Panama City, but don’t except (all) vendors to throw property at your feet.

Here’s our advice for those looking to get into the Panama apartment market:

• Refine your search to established condo towers in prime areas that are completed.
• Avoid off-plan purchases.
• Buying re-sales from individuals may be a better option than purchasing directly from developers.
• Be very clear about your objectives. Are you planning a Panama retirement? Are you more interested in a vacation home? An investment?
• Build a network of local contacts to bring you real-time deals and get up to speed with what the best local market commentators are saying.
• Don’t assume you’ll be able to get the kind of financing terms available before the economic downturn. The availability of mortgage finance has slimmed.
• Finally, take your time. Be careful not to be seduced by discounts and incentives so that you forget considerations of value.

Related posts:

1. Panama property: doing better than many markets, but not immune to the global downturn
2. The real estate market in Central America: In graphics
3. What $50,000 will get you in Belize, Panama, Costa Rica and Nicaragua less than 90 minutes from the international airport.

1. Nicaragua is at the top of the list of places to retire abroad for those on a budget. The country’s benefit-laden retirement program was revised in 2009 and includes incentives such as no tax on foreign earnings and duty free imports from automobiles to household items. This combined with the innovative Law 306 (tax and import duty exemptions for tourist-related ventures), and the lowest cost of living in the region does much to encourage retirees to the country. And yet, Nicaragua has not yet realized the kind of influx that Costa Rica and Panama enjoy. Some put this to the ‘close relationship’ that the current President has with Hugo Chavez, the controversial leader of Venezuela. But others stress the ‘early in’ nature of the real estate market and it’s potential for future growth.

• Learn more about Nicaragua real estate
• Learn more about Nicaragua property prices
• Learn more about Nicaragua retirement

2. Panama still beats expectations. Between the beaches (70 to 90 degree weather year-round) and the highlands (50 to 80 degrees and less humidity), you’ve got a range of climates to choose from. But the real perks of retiring here include a stable government, modern banking (the U.S. dollar is legal tender), tax benefits (no tax on foreign-earned income, property tax breaks), and solid roads and telecommunications. The boom years saw hundreds of new condo towers in the capital city (see more analysis on Panama apartments) and real estate projects launched across the country. This was followed in 2009 by a marked slowdown in sales activity. Some over-leveraged projects stalled or suspended operations and re-sales were offered at large discounts. But as we enter the second quarter of 2010, local real estate agents note that enquiries are rising again.

• Learn more about Panama real estate
• Learn more about Panama property prices
• Learn more about Panama retirement

3. Belize offers the classic Caribbean experience mixed with a long-standing culture of ecotourism. It’s a tiny country packing a remarkable amount of diversity between its borders - tropical forests, mountain summits, a palm-fringed coastline and the longest barrier reef in the Western Hemisphere. Belize stands out as being a true banking haven (retaining high levels of liquidity through the recent banking crisis) with strict secrecy laws.  A major bonus for retiring overseas in Belize is that the official language is English and the legal system is based on British law. Things have slowed since the financial crisis (except perhaps in Placencia where the market seems to be booming) and commentators talk about a more stable and less speculative market taking hold.

• Learn more about Belize real estate
• Learn more about Belize property prices
• Learn more about Belize retirement

4. Costa Rica has long been considered a great place retirement overseas and for many years set the benchmark to follow for other Central American countries. More recently however, its retirement program has fallen behind its regional neighbors that offer more incentives aimed specifically at retirees. As it’s only her second day in office, it’s too early to see what Laura Chinchilla, Costa Rica’s new President, has planned.  The capital city of San Jose and the Central Valley region seem to be bucking the general slowdown and attracting an ever-growing number of retirees. The northern Guanacaste region also appears to be climbing back after a difficult year in 2009.

• Learn more about Costa Rica real estate
• Learn more about Costa Rica property prices
• Learn more about Retiring in Costa Rica

Guest post contribution by Sarah Harris, of Zen College Life, the premier directory for online degrees. Find out more information about a psychology degree.

Related posts:

1. Panama listed in Forbes top 10 retirement havens
2. The real estate market in Central America: In graphics
3. The 7 most expensive regions to own an ocean view condo in Central America

Here are five ways to create a listing for your international property to draw the buyer closer:

1) Use photos that provoke

Most of the guidance on real estate photography will tell you to display as many photos as you can. Marketing gurus will tell you that photos sell a property better than words; that the more photos you have, the better qualified your buyers, and the more efficient your sales process.

But is the goal of real estate photography about efficiency or is it really about provoking an emotional response from the buyer? Should your photos do the job of documenting all the features of your property or should they be focused on advertising?

The best advice on real estate photography is more nuanced than the ‘more is better’ mantra. For each photo ask yourself; “Will it resonate with the buyer?”  “Will it arouse an emotion?”   “Will it motivate them to ask for more information, to set up a viewing?” “Is the photo advertising the property or merely documenting it?”

Don’t use every photo you have just for the sake of it.  You may do more harm than good.

2) Seduce with your listing headline

Your listing headline has only one purpose: To get the buyer to read the first sentence of your property description.

You won’t be able to do this with a watered down headline that appeals to the masses.  Clumsy real estate copy like “Hurry, this won’t last long”  ”Serious offers only”  ”Very special”  ”By appointment only” won’t work either.

You have to be laser focused and define your target buyer precisely.  Fix them in your mind and use the listing headline to write them  - and only them - a compelling promise.

Practice doing this by starting off your headline with the word “why” and follow with a statement describing the benefit of owning your property.   You’ll find that the benefit comes down to lifestyle (e.g. becoming a better golfer, living like a jet-setter, fulfilling a retirement dream) or an investment goal (e.g. investing for profit, a lower cost of living).

3) Follow up your headline with a persuasive description

Assume your buyer has attention deficit and your challenge is to write your copy to make them linger on your property listing.  You’ll need to satisfy their logical left-brain by listing all the facts and features of the property and then deliver an equal measure of benefits to entice their emotional right-brain.

Don’t forget what buyers are really interested in. They’re not buying walls, a carpet, concrete or a roof.  What they’re buying is a lifestyle, a dream, a sense of community, a way to impress their friends, a means to make money….  These are the benefits your property will deliver.

It may help to think of the reasons why you bought the property in the first place and try and distill this into words.  Be direct. Use short sentences. Sell with the benefits and don’t get bogged down in the features.

4) Choose a price that entices

The mechanics of pricing your property to the current market is difficult in Central America due to the lack of an MLS and market comparables.  In fact, this lack of data is one of the reasons why we set up this site.

But don’t let this daunt you.  The key to setting a price is looking at your house like a buyer would. Search listing sites on the Internet for comparable properties, read our post on understanding the real estate market in Central America in 10 seconds, build a spreadsheet of asking prices in your area and use this information to ensure you are priced competitively.

Think creatively about incentives that you can offer buyers such as absorbing some of the closing costs or offering seller financing.   And don’t forget to add this in your listing description.

5) Include extras like video, maps and neighborhood information

Contextual information is important when selling overseas property because your buyer will know less about the market, the neighborhood and the local amenities than for places closer to home. This unfamiliarity breeds lots of questions.

Think through every objection they may have (e.g. quality of health care, proximity to amenities, neighborhood type, travel times, local attractions, cultural details) and try and address each one in your listing.   Neighborhood information, video tours and location maps work especially well when selling international property.

You property listing is an important part of marketing your property.  Get it right and you should provoke your target market into taking the next step. But what about you?  Do you have experience with selling a property your own  in Central America? Have you found any tactics that get your property listings noticed quickly?  Share them in the comments.  For more tips, here’s another post on selling property from the series.

Related posts:

1. Sellers: do you make these mistakes when listing your international property for sale?
2. Should you buy in an overseas property hotspot?
3. Which of these 5 types of overseas property investor are you?

This post is the first in a series designed to help sellers get the best results when selling a property they own overseas.  Here we tackle the question of listing your property with the main real estate agencies operating in your market.

Yes, we’ve used the plural.  In fact, if you can, list your property with every real estate agent in town.  Why?  Well let’s start with a bit of background.

In the absence of an MLS, ’open listings’ are the norm in Costa Rica, Nicaragua, Panama and many other parts of Central America.  You’ll find a considerable overlap between the listings held by different real estate agencies and the best way of getting exposure for your property is to make sure that as many agencies as possible know it’s for sale.

At a minimum make sure you list with the major players.  They should be easy to find.  Let’s say your property is in Nicaragua.  Type ‘Nicaragua real estate’ into Google and make sure your property is listed with all the brokers appearing in the top 5. Good brokers will also have a prominent office location in the area where you’re selling (or close to it) and a smattering of property signs (unless of course they’re trying to ‘hide’ a particular listing from competing brokers).

Your goal is to keep your property front of mind so that it is presented to all possible prospects.  Remember that in the absence of a MLS your broker is trying to ‘list’ as many properties as possible – taking a volume approach – in the hope that one or two will sell.  They are unlikely to be particularly vested in your listing and any time and expense spent on marketing your property can easily go un-rewarded if a competing broker sells the property first.

So it makes sense to make the listing process as easy as possible.  You don’t want your property withering away in a “to-do” pile. So expect to take on some of the leg work yourself. 

Write a compelling description of your property (we’ll go into what makes a compelling listing in later posts), set out the viewing instructions, gather your paperwork and collect together some good photos. Then send the information to each agency and follow up on a regular basis.   Some sellers even take the extra step to prepare a set of electronic and printed flyers for each agency.  (If you do this, remember not to put your own contact details on the materials as brokers will be reluctant to pass this out.)

You may think that you can shortcut this process of multiple listings by offering one agency an exclusive living.  But, unless you own the last beachfront property on a hugely popular beach, or broker collaboration is the norm in the area, singing an exclusive listing may not be in your best interest.  In the absence of an MLS, there is no guarantee that the agent will share the listing with other agencies.  And even if they do, all agencies with the exception of the listing agency will view the exclusive listing as one that does not pay a ‘full’ commission, as the listing agency will expect a commission share.  So check how things work in your region before you decide to sign an exclusive agreement.

Part of getting the listing right is, of course, getting the price right.  In later posts in this series on selling property written for international real estate owners, we’ll look at how to find the pricing sweet spot for your property, how to make your listing convert like crazy, catching buyers on the web, structuring the deal to be attractive and issues to look out for in sales contracts. Our goal: To help you sell property quickly. Stay tuned.

If you have experience - good or bad - of selling foreign property that you own, we’d love to hear from you. Contact us with your story or sound off in the comments.

Related posts:

1. 5 ways to make your overseas property listing convert like crazy

OK so you’ve found a beautiful condo with a great view of a surf break. Or a luxury mansion where you can impress your friends with your lavish international lifestyle.

But can you really love your home if you don’t like your community, the surroundings or your neighborhood?

We don’t think so. So we encourage you to become a real estate community profiler. Start by figuring out exactly what you’re looking for, the kind of lifestyle you enjoy, the amenities you need and zero in on the community that delivers. Do this before you start comparing individual houses, lots or condos.

To get you started on your profiling, we’ve put together a list of 8 types of master planned community you’ll find in Central America.

1. Status communities

Status communities are at the top of our Price Rank. They tend to be beachfront, exclusive, and packed with community amenities - such as a golf course, marina, hotel, private club, fitness center, sports facilities, convention center, etc. If you’re in Costa Rica or Panama you may even see a top tier brand name associated with the community. Think Four Seasons, Trump, Ritz-Carlton… Properties in status communities tend to be large custom built houses or upscale condos.

2. Golfing communities

Yes, you’ve guessed it. Golfing communities have golf courses and attract golfing enthusiasts. The graphic shows the completed golf courses in the countries we cover. Costa Rica leads the field with 9. Of course many more are under construction or planned. Most golfers like to play on different golf courses so remember to look for the geographical clusters within (say) an hour’s drive of each-other. Read more on golf property in Central America.

3. Surfing communities

Walking barefoot out of your property, surf board in hand, straight out to the break is something surfers dream about. Luckily in Central America there are many property developments where this is possible. In fact we’ve found over 60 master planned communities located within walking distance to a surf break. Here’s the list and map. We also looked at developments within an hour from a break and the list is longer.

4. Historic communities

It’s really only Nicaragua and Panama that can boast ‘historic communities’. In Nicaragua these are clustered in and around Granada; purportedly the oldest continually inhabited city in the Americas. Nicaragua also has Leon, a city that rivals Granada when it comes to the colonial feel. But you’ll find more master planned communities located around Granada. If you’re in Panama, head straight for the Casco Viejo area of Panama City for colonial buildings with serious curb appeal.

5. Retirement communities

As North American retirees take stock of economic realities, it’s clear that many are looking for a more affordable life overseas. The retiree trend has not escaped the attention of real estate developers and we’re seeing a growing number of communities, or sections within communities, designed specifically to cater for the over 55s. Look out for on-site medical facilities and organized social activities such as bridge, painting, yoga and so on.

6. Escape communities

International real estate (and vacation homes in particular) are commonly marketed as a form of escape. An escape from the stresses of the modern world and the hustle and bustle of 9-5 living. Places where you can switch off your cell phone, unwind and embrace a simpler, less hurried lifestyle. Destination resorts have popped up all of the place, sometimes in very remote areas to cater to this need. The remoteness is repackaged as a benefit that delivers ’space and privacy’.

7. Urban core communities

Moving overseas is not always about fulfilling your escapist dream (See #6). Sometimes you want to be close to amenities and be highly accessible. Panama City stands out in this regard. It’s the most cosmopolitan of all Central American cities and a world class financial center. We’re not just talking about coffee shops, restaurants and nightlife but world class shopping centers, banking, theater and fine arts. The Central Valley area of Costa Rica probably comes in a close second.

8. Eco-communities

One of the characteristics of the post crisis investor is an interest in “contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy”. Recent years have seen a huge growth in master planned communities embracing the sustainability agenda ( and no, not just in Costa Rica). It’s sometimes hard to get past the green-washing but here’s a list of projects that have made public disclosures. The green trend is here to stay, we just need better ways of distinguishing the projects that churn out empty eco-cliches from the ‘intentional communities’ that are taking real action on the ground.

Now you’re ready to start finding a master planned community that fits your lifestyle. Are there any categories we’ve missed? Let us know in the comments. And once you’ve narrowed things down don’t forget to ask these 10 questions before you buy.

Related posts:

1. What’s the cheapest real estate you can find in a master planned community in Central America?
2. The real estate market in Central America: In graphics
3. Are real estate prices stickier in Central America?

Over the past few months a select group of developers have come together to showcase a broad palette of real estate options under a unified banner - “Choose Belize”.  The group has been convened by Coldwell Banker Belize and represent the top properties and investment opportunities across the country as a whole at a time when it’s more important than ever to focus on value.

Coldwell Banker Belize has done the homework on the ground, leveraged their first hand experience and networks, triangulated their offerings against “four pillars of international real estate success” and enlisted the help of our database to track down the really great deals in this buyer’s market.  Then, they designed a three day property tour to showcase what they had found.

They’ve just put out a video describing why the tour is a smart way to research the property market. I counted 5 reasons as I watched the video. Have a look:

Look out for the Recommended Real Estate Tour Member badge

We’ve added a “badge” to the listing page of developments in our database being showcased on the Choose Belize Tour.   Here is a selection of what you’ll see on tour:

• Brahma Blue
• Caye Winds
• Cocoplum
• Grand Baymen
• Orchid Bay
• Los Porticos
• The Villas at Cocoplum
• and more…

No question, a real estate tour, where you get to see a choice of property options, selected by in-country experts, is a prudent way to make the decision if Belize is right for you.

Related posts:

1. Fantasy island for sale in Belize - without the price-tag.
2. Who is buying property in Central America?
3. Belize condos: A market snapshot

The global financial crisis and its impact on international real estate is still discussion topic #1 among investment analysts, real estate agents and developers in Central America. Everyone agrees that 2009 was a difficult year. The tricky part is that the arguments being presented paint quite different scenarios for the future.

On the one hand, large-scale real estate projects, especially if heavily leveraged, have proven vulnerable. The suspension of the St. Regis project in Costa Rica in the wake of the Lehman Brothers collapse was the first high profile example. Other project closures and suspensions followed in 2009 including the Rosewood at Costa Carmel (Costa Rica), La Punta Papagayo (Costa Rica), Marea Alta (Nicaragua), and Orchid Residences (Panama City), to name a few.

But perhaps more important than the direct impact of the international financial crisis, the property pessimists argue, was the indirect effect of tighter lines of credit in North America - the main source of buyers for international real estate in the region. No longer is the market being carried by North American buyers flush with equity and easy credit. It’s easy to point to low sales volumes and falling prices to make this point.

Any bright spots? Counter trends?

One can overdo the gloom.  The optimists point to sticker prices on the downside in Central America relative to more mature markets. The relatively low levels of lender mediated activity across the region meant that the market did not suffer the kind of foreclosure crisis we’ve become used to reading about in the US.

Second, international real estate markets, and Central America included, are increasingly being seen as tax-friendly, safe haven investments. The kind of places investors and retirees seek to shield themselves from the US financial system.

Added to this, is a new wave of lifestyle buyers looking for areas where the real estate is cheaper and, crucially, the cost of living more affordable. We included examples of developers, such as Montecristo Beach & Golf Resort in Nicaragua, Grand Baymen in Belize and Valle Escondido in Panama, successfully marketing to these buyers in a recent article for the International Property Journal.

The upshot?

The impact of the financial crisis has been mixed both within and between countries. Developers are having to adapt quickly to a new market.  Those that understand the mindset of the post-crisis real estate investor are best placed to succeed.

Investment activity is trending towards well-planned developments with good locations, quality products and a master plan that delivers against end-user requirements. Pre-construction offerings in weak locations face an uphill battle.

The property pessimists are right that the boom years are over for international real estate in Central America.  It’s a different market now, with buyers firmly in the driving seat. Welcome to the ‘new normal’.

Related posts:

1. When overseas retirement looms, retreat to Central America

One of the most telling aspects of the new normal is the retreat of the speculator buying for quick re-sale profit. The speculator has been replaced by a new type of international real estate investor - a ‘post crisis’ investor - with a different mindset and goals.

14 characteristics of the post crisis international real estate investor:

• More informed and will demand better service from the industry
• Will not make decisions based on thin slices of information but will demand openness and transparency
• Skeptical of promises made by developers on their websites and brochures
• Wary of pre-construction properties, preferring to purchase completed real estate with amenities they can enjoy right now.
• Will want to understanding the financial health of the community before they invest
• Will expect substantial discounts on the market highs of 2007
• Will haggle, even when it comes to high-end properties
• Will be drawn to real estate that is a bit low key
• Interested in properties that generate revenue in the short term.
• Motivated by lifestyle factors (not just financial gain)
• Focused on regions with a low cost of living, good health care and safe streets
• Will avoid areas with over-supply risk and copy-cat developments
• Will seek safe haven investments and tax friendly environments
• Interested in contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy

With change comes opportunity

In order to succeed in 2010, developers will need to innovate their products and their marketing to embrace the mindset of the post crisis real estate investor. Those that do will earn their way out of trouble. Those that don’t will suffer.

Tourism and retirement as a business model for international real estate in Central America is not broken, it has just shifted.  Yes the over-leveraging of the North American and European consumer has come to a halt and the debt in finances will have lingering consequences. But as retirees and investors take stock of their situations and consider their options, many will still be looking for a more affordable life overseas and safe, tax-friendly places to plant their money.

We’re looking forward to a healthier, more sustainable market for international real estate in Central America. One that is more open and transparent and less reliant on the rampant speculation of the past … 

…but it may take all of 2010 to get there.

Related posts:

1. Which of these 5 types of overseas property investor are you?
2. After the storm: Pessimists vs. Optimists

2009 has been a tough year for real estate sellers in Central America. Sales volumes are down, buyers are more risk adverse and financing is tight. The one bright spot is a growing group of ‘lifestyle buyers’ looking for cheap properties and a low cost of living. Many see Central America as an affordable safe haven and a way to side-step the worst effects of an economic downturn at home.

As it’s cheap real estate these lifestyle buyers are after, we thought we’d offer up a resource that highlights the lowest priced real estate in the four countries we follow: Belize, Costa Rica, Panama and Nicaragua.

Not surprisingly, the most affordable way into the market is by purchasing a lot or homesite. Our analysis looks at master planned communities targeting the international buyer. This means that a lot purchase comes with access to community amenities. Swimming pools, clubhouses and fitness centers are the most common. In some of the larger, resort-style communities, you’ll find golf courses, restaurants, shopping centers, racket courts, hotels and marinas.

So what’s the starting price point for lots in master planned communities?

We’ve built a ranking table to answer this question, giving the results in overall price and price/sqft for 2009. The table complements the earlier PriceRank we prepared for single family houses and condos. The columns are sortable letting you organize the list in different ways. If you want to know what amenities are offered by each real estate development, click through to the individual page for the answer. You’ll also see if the amenities are planned or completed.

A quick glance at the table shows two broad themes:

• Real estate developments located in Nicaragua tend to rank lower (ie are lower in price) than those in Costa Rica, with Belize and Panama falling somewhere in between. This pattern mirrors the level of maturity of the real estate markets - from emerging (Nicaragua) to middle markets (Panama and Belize) to the most mature (Costa Rica). We’ve analysed this before by plotting ‘development curves’ to show the relative levels of each of the markets.
• Generally speaking ocean property has a premium over other locations. Master planned communities on the ocean rank higher for the most part than lake/river and pastoral locations.

We’re continuing to sort through the data we collect, looking for the best ways to present and dig out the facts. We’d love to have your ideas and suggestions. They’ll be more price rankings to follow. We also plan a “Master Plan Completion Index” to give a sense of how far along real estate developments are with their master plan - a piece of information that savvy real estate investors should follow with care.

Stay tuned by subscribing to updates.

Related posts:

1. How to find your perfect master planned community in Central America
2. The real estate market in Central America: In graphics
3. The 7 most expensive regions to own an ocean view condo in Central America

This post is the fourth in a series that explains how the real estate market works in Central America. Here we look at why it’s hard to get reliable market comps (and what to do about it).

Market comparables (or ‘comps’) are the starting point for a buyer looking to cut a deal in any market. By looking at the price of similar properties, in similar condition, in similar locations a buyer can determine what’s good value and what’s not.

Trouble is, unlike in the US, real estate agents in Central America can’t draw on an industry database - such as the Multiple Listing Service - to bring out comps.

The other obstacle to good comps is how property gets recorded at the Public Registry. In the markets we cover it’s common for the recorded sales price to bear little resemblance to the actual sales price paid to the seller.

There are reasons for this and old precedents, but the upshot for buyers, sellers and agents is that it’s practically impossible to get any base data on sales.

Will “revealing” this feature of the market change the course of the real estate industry in Central America? No, probably not. But it’s important for buyers to understand how things work and to know that they have to rely on old-fashioned legwork and good contacts to get the information they need.

Ferreting out the real estate comps in Central America

We plan to write more on the subject of getting hold of comps in the region. (After all, it’s one of the reasons we set up this site and database of master planned communities.) But here are some steps to start with:

• Begin your research on the Internet. You won’t be able to find out how long properties have been on the market, or actual sales prices, but you will find asking prices. These don’t provide a perfect valuation - they often differ from actual sales prices - but in a world of imperfect data, asking prices are a good place to start.
• Speak with local real estate agents and market experts. The ones with a close ear to the ground will be able to outline actual sales price points for different property categories (e.g beachfront lots in San Juan del Sur or Ocean view condos in Panama City).
• Seek out the best-researched international real estate blogs and news websites for insight into how the market is doing.
• Head on over to Global Property Guide for some great data on global markets.
• Use this site if you’re interested in purchasing in a master planned community. We deliver the asking price comps. Our pages show the price for different property types compared against the country and regional averages for our sample (see example). We’ve also simplified the data into a 2009 PriceRank for international real estate developments in Central America.

The point is to let the data drive your investment strategy. Only then will you be able to ferret out the best value real estate in the region.

What to know more about how real estate works in Central America?

Here are the other posts in the series:

• What you need to know about how real estate works in Central America (and why you should know)
• Why are you left with that niggling feeling: “Have I seen all there is to see”?
• Are brokers really playing hard-to-get with their listings?

No related posts.

Imagine this …

You’re searching online for an ocean view condo in Panama and you come across a listing that takes your fancy. It looks like there’s a nice open floor plan and exactly the kind of kitchen you’re looking for. And maybe that’s a surf break you can see out of the bedroom window. Looking good… So you scan the listing to find out where the property is located.

Now here’s where the information gets scant. In fact, you can’t find any location information whatsoever. “Why?” you wonder in frustration, “Is the broker not giving me this crucial detail?”

Is this a real listing?

Most likely you’re looking at an ‘open listing’ or a ‘pocket listing’. As it is ‘open’ any agency can list the property. But only the agency that introduces the buyer earns the commission.

You can see why it makes sense in this scenario for the real estate broker to keep the listing information vague – they want to reduce the chance of competing brokers finding the owner and taking the listing for themselves. For some properties, brokers and agents may take this one step further and not have any information on the listing on their website.

Open listings and inventory hoarding by brokers is common in the region. It’s a factor of not having an MLS system.

What about exclusive listings?

There are exclusive listings in some markets, (they seem to be more common in Belize for example), But again, in the absence of an MLS, exclusives don’t always work very well.

This is because everyone, with the exception of the listing agency, will view the exclusive listing as one that does not pay a full commission, as the listing agency will expect a commission share.

If you’re a broker, why show an exclusive property for a shared commission when you’ve got open listings on your books that pay a full commission? (In US industry terms a full commission comprises both the “listing” side and the “selling” side of the commission, known as “both sides of the transaction”).

Towards better location information

Things are slowly getting better as the online marketplace evolves. On this site for example we plot each master planned community on a Google Map. We also provide an estimate of driving time to the nearest international airport and the nearest town with a decent sized grocery store.  (Here’s an example).  It’s our Central American version of the DriveScore.

Of course we’re still a long way away from arming consumers with the kind of data they have in the US. But the data supply is increasing and transparency is starting to improve.

What to know more about how real estate works in Central America?

Here are other posts in the series:

• What you need to know about how real estate works in Central America (and why you should know)
• Why are you left with that niggling feeling: “Have I seen all there is to see”?
• Why is it hard to get reliable market comps (and what to do about it)

Related posts:

1. Sellers: do you make these mistakes when listing your international property for sale?
2. How real estate works in Central America (and why you need to know)
3. Why do you have that niggling feeling: “Have I seen all there is to see?”

As a buyer in any market, it’s natural that you want to choose between all properties that fit your criteria. Because only then can you make an informed decision.

In the US, this process is relatively simple:

Let’s say you’re looking for a three bedroom house in Phoenix, for under $325,000 with a garage that’s located close to a good school and has a DriveScore of 70 or better. Well, with a few clicks, your agent pulls together a list of properties that fit these criteria. You review the list, maybe check out the Street View for a few of them, whittle the numbers down and go on a viewing.

While you’re out on the property tour you whip out your iPhone, compare the Zestimate against the asking price and organize your viewing experience with the Better Homes and Garden app.

That’s the beauty of the Multiple Listing System and all the IDX websites, apps and widgets that have been built around it.

The MLS is basically a central database of properties. When a seller lists their property with an agency it gets added to this database that in turn gives buyers the most comprehensive set of listings in their area of focus.

You’ve probably guessed where we’re going with this …

Welcome to a world without an MLS

Despite some valiant attempts over the years to start up local MLS-type systems, there’s still no MLS in Costa Rica, Panama, Nicaragua or Belize.

This means that when a seller lists a property with an agency, it doesn’t get added to a central database that other agencies can access, and buyers can’t sift through a full list of property for sale. (Oh and forget comparables, but that’s a topic for another post.)

So if a buyer really wants to see all that is available, they have to go on a property tour with every agent in the area they are interested in. There may be some local market experts or buyers agents who can short cut this process a little, but for the most part it’s a pretty daunting endeavor.

Making things simple

Our aim at Reveal Real Estate is to help simplify things. Of course we can’t claim to be a fully-fledged MLS. But we’re trying to build the next best thing by providing one place where buyers and sellers can access information on real estate developments, master planned communities and condo projects.

Our goal is transparency – to find every real estate development in the region and put this information online.

What to know more about how real estate works in Central America?

Here are the other posts in the series:

• What you need to know about how real estate works in Central America (and why you need to know)
• Are brokers really playing hard-to-get with their listings?
• Why is it hard to get reliable market comps (and what to do about it)

Related posts:

1. Are brokers in Central America playing hard-to-get with their listings?

Some of this is Real Estate 101, applicable to any real estate market. But when you look closely at how the market operates in Central America, you’ll notice important differences compared with the US.

We’re speaking from experience

When I was first researching the real estate market on Nicaragua’s Pacific coast in 2002, I went on property viewing after property viewing with a host of different real estate agents.  We covered an enormous amount of ground, spending long days touring up and down the coastline.  But despite this effort I was still left with that niggling feeling: “Have I seen all there is?“.

I spent hours on the Internet trying to figure out whether there were properties that fitted my criteria that I hadn’t seen.  Instead of finding re-assurance online, this process confused me even more.

Many of the listings I stumbled across online had vague descriptions and almost no location information.  It was almost as if brokers didn’t want me to see what they had on offer.

Fast forward to today and I know why brokers seem to play hard to get with their listings in Central America and why it’s difficult to get a comprehensive picture of the market.

(As it turns out, I’m happy with the investments that I made.  But had I known more about how the market for real estate in Nicaragua works, the process would have been less fraught and I would have felt more confident about the decisions I was making.)

So how do things work?

We’re writing a series of posts explaining the intricacies of the real estate market in Panama, Costa Rica, Belize and Nicaragua.

We want to go beyond the usual insider tips for international real estate in Central America or the questions to ask the real estate developer. The posts focus on the process of real estate, the mechanisms of the market, the detail of how things work in practice, and what this means to buyers interested in these markets.

It’s the kind of information we wish we’d had when we were researching the market.

We’ll also present how Reveal Real Estate fits into the picture; how we fill some of the information gaps and help buyers make more informed decisions. We’re part of the market and have a passion for making things work better.

Here are the first posts in the series:

• Why are you left with that niggling feeling: “Have I seen all there is to see”?
• Are brokers really playing hard-to-get with their listings?
• Why is it hard to get reliable market comps (and what to do about it)

Related posts:

1. Are brokers in Central America playing hard-to-get with their listings?
2. Why do you have that niggling feeling: “Have I seen all there is to see?”
3. Sellers: do you make these mistakes when listing your international property for sale?

Forbes pulled together the list of top 10 retirement havens using a range of criteria from “safety to retiree-friendly visa requirements to decent medical care.”  Quality of life, cost of living and climate for retirees were also factored in.

Sam Taliaferro picked this up over at his Panama Investor Blog where he listed some of the positives for Panama:

“Positives: Panama has almost everything: year-round sun, low taxes, massive discounts for seniors, first-world amenities, quality private hospitals, bird-filled rainforests, a dollar economy and easy flights from the U.S. Panama City is considered safest of all Central American cities, with worldly buzz because of the canal, and a World Heritage Site.”

Panama is emerging strongly from the recent economic crisis, faster than some of its regional neighbors.  Major infrastructure projects are underway or recently completed, including the Cinta Costera in Panama City, the upgrading of the airport at David to accept international flights, and of course the expansion of the Panama Canal.

Panama offers retirees a benefit laded retirement program packed with tax exemptions, incentives and discounts and day to day living costs are cheaper than in the US.  Another positive is a dollar based economy, a factor that reduces currency risks, especially for North Americans.

Of course each country has “assets and liabilities” and much depends on what kind of lifestyle you are looking for.  So the key to a successful retirement as an ex-pat?   Know yourself and do your homework.

Related posts:

1. When overseas retirement looms, retreat to Central America
2. Panama real estate: secure, exotic and diverse
3. Recent news emerging from Panama is bolstering confidence further