The Buying Process
Calculating Value
Asking Price
As in every other free market real estate transaction, the asking price will be the highest benchmark used for calculating the true value, for the asking price is the price that the seller would like to get! In Costa Rican culture, bargaining is the accepted means of reaching an agreement between buyers and sellers. It is not uncommon to offer properties at 200% to 300% of their true value.
For a savy real estate investor, do not feel ashamed to offer to buy at a significantly lower price should the other benchmarks guide you to. Many times the asking price is not used just as a high end sales price goal for the seller. Very often it is a stab at making a substantial profit and the seller will often be happy to sell at a more reasonable price. With property values increasing by 15% to 40% per year in most cases, selling for the true or assessed value of the property is still quite a payoff for the seller.
