Building with VDP

[ojochal]

We began building a 2000 sq ft house 13 months ago.  It is scheduled to be finished in at the end of July.  The construction contract said 10 month and the project should finish in 14.  I believe we are typical it not quicker than most.

As for appreciation, the local person for VDP advises owners that the value of the land has doubled for those that have bought 2-3 years ago.  I've not seen anything sell at double the price.  There is a lot that was originally priced at $130k.  The owner put it on the market earlier this year for $500k.  It still hasn't sold and it has a terrific ocean and mountain view.

I'll be happy to send you a link for pictures so you can see the contruction process step-by-step.

[rod]

Hi and a warm welcome for your comments.
I'm not a real estate expert as others are in this forum, but I've lived here 37 years. Real estate estimates tend to get ahead of themselves, it seems to me. But such is the appreciation in Costa Rica that they tend to catch up eventually, although it may take longer than the optimist says. Finding out the real value of land in Costa Rica is incredibly difficult, due to hazy records and a tendency toward exaggeration by people who have just sold a house. I fear that only the good and bona fide real estate brokers can tell you. The rest are mostly amateurs. Add into this mix that some Ticos think that all foreigners (except Nicaraguans) are rolling in money and try to hang their hats on the moon when they have land to sell. Again, many times, a realtor can bring them back to earth.

[costaricabuilder]

You can hire a professional to complete a certified appraisal of your property so you can find out it's current value. If you use an appraiser that is approved by the local banks the appraisal will be acceptable in case you would like to sell and the buyer needs financing. I built a custom 5000 sq. ft. home with a solar powered indoor pool in Ciudad Cariari and it took me eleven months to complete it. As soon as it was completed in 2002 I had an appraisal done for about $600 and when I wanted to sell the house the appraisal was  invaluable. The purchaser took the appraisal to Banex bank where my appraiser had worked before and we closed with financing in 45 days. Tuanis!

[Ivo]

I have sold lots of properties financed through local private banks over the last couple of years (before everybody would buy cash as no financing was available to non residents). Lately, my problem was that the bank appraisers would always appraise low to cover their butt. This would get the financing to sometimes only 60% of the sales price. Two weeks ago, I figured it out as I always go with the appraiser. The appraiser asks for a reference price when measuring the property and filling out his forms and, I always supposed they call around for prices in the area, so I would give them the real sales price. This time, I took the decision to give him the price of $159K on the property while the agreed sales price was in reality $140K. I thought he would figure it out, but what the heck. Guess what, the appraisal came out at $140K. I now have a complaint with Scotiabank and the sh.... is hitting the fan over there.
So, talking about bank appraisers....they're civil engineers and have no clue about real estate values. They don't even have an idea about the cost of marble floors, expensive bathroom accessories etc. as don't have them at home. Typically, they will not know how to appraise a home over $300,000. I have had them appraise brand new apartments in Riverside in Escazu where the buyer has bought in pre-construction for a much lower price than they cost when finished, for under the pre-construction price when finished while it was a simple matter of checking back with the developer what the finished price was being offered at. Believe me, in all my years in real estate, I have NEVER seen a logical and well done appraisal as we have no comparables registered and they use replacement value as they think it is and not the market value of the properties.