Negotiating to Buy a Home

the prices are generally decided by the owner... based solely on what they want to net from their property. any resemblance to logic or market value is simply a coincidence. In fact, the price for any given property could be quoted differently by the owner and various real estate agents. my suggestion is to do your own market survey and see what you can find available on the market, and determine a property's value based on what you can find for sale. Again, that will be difficult due to the great variance in prices and available properties.

Unlike in the U.S., there are no multiple listing services, and neither real estate agents nor the business as a whole are regulated by the govt. or anyone else. basically it's the wild west. My best advice is to meet with several agents and try to pick one that actually is a professional, that you feel comfortable with, and who seems honest. It's a somewhat trying process when you might be accustomed to a different system, but keep your wits about you, and with some luck things will work out.

Hi:
One thing you should consider above all else in buying a villa is the security aspect. In the DR that is very very important. If you live in a free standing home you will need to consider what security arrangements you have to make things safe, such as, a guard, bars on the windows, location of the home, etc. If you live in a gated community that is a definite plus. In North America we don't think about these things in the same terms. Here in the DR it is a must.

S

Forget all this mumbo-jumbo advice, just get yourself an appraiser, much like any national bank would do before they loan the owner of the property some money. The appraiser will cost you between three and four thousand pesos, a little over a hundred dollars; this will assure you of paying the right price for your home. Also do think about the area of the home as well, better safe than sorry.

Here's my advice.
Come here and rent a "Villa" for a year.
THEN decide if you want to buy a "Villa" in the DR,continue to rent,leave the DR,or wait for a "Great Deal" to come along,in an area you like,all of which will be options to you after a year,if you don't buy first!
Cris Colon
That's what I did.
I found a "motivated seller",(Divorce) in an area where I was already living,Arroyo Hondo,SD.,and bought a house, where we still live.
CC

Wardo said:

Thanks all for the good advice!

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Yes, agreed rent for a year or two and get the feel of the land, but most important, DO NOT listen to any ex-pats that become super friendly with FREE Real Estate advice, and recommend any particular property. There are a few well known scum-bags on The North Coast to avoid!

I think if you can find a local Dominican realtor, you'l ultimately come out ahead.

Unless the realtor is fluent in Spanish, all you'll see is ex-pat/English speaking properties.
Dominicanos own some good/great land and will probably deal with a local, native broker.

Just my thinking.....

Wardo said:

Thanks all for the good advice! When the time comes, I'll definitely seek professional help. And I get the security issues. My strategy is to find a decent neighborhood and then make sure my house has stronger security measures than the neighbor's.

As far as asking prices, if I was buying in the US, I would look at a 200,000 listing and think, "I could probably get that for 180 or 190." In the negotiation culture that is the DR, what should I generally be thinking for planning purposes? 200,000 means 120,000? 150,000? Or 210,000?

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How much time have you spent in the DR? If you have not lived here for at least a few months, the advice that you rent first is the best advice you are going to get on the matter of buying a house or apartment here.

Regarding your question, a lot will depend on market conditions when you buy. Right now prices are down, by the time you are ready to buy the market may be back up again. This has a lot to do with how much difference there is between asking price and what the seller will accept.

Wardo said:

Thanks all for the good advice! When the time comes, I'll definitely seek professional help. And I get the security issues. My strategy is to find a decent neighborhood and then make sure my house has stronger security measures than the neighbor's.

As far as asking prices, if I was buying in the US, I would look at a 200,000 listing and think, "I could probably get that for 180 or 190." In the negotiation culture that is the DR, what should I generally be thinking for planning purposes? 200,000 means 120,000? 150,000? Or 210,000?

Thanks!

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My opinion is that there are, Yes, those properties priced to sell and those that the owner is taking a long term view and will only sell if a very attractive offer comes along. The difference can be 30% or more.

As in all property deals , Florida etc. the market can go down short term ; for example after 9/11 some owners were looking at a 40% loss. Now of course many places on the North coast have experienced steadily rising prices but there are still bargains so it is not perhaps good to wait a long time; 3-6 months rental while negociating suits many people.

However holiday rental market is strong now in many places and certainly DR prices are very attractive compared with many places in the region. Due to the strength of the economy domestic tourism is taking off.

Getting a deal is more time consuming than in many countries: prepare your own checklist : must, desirable, nice, definitely exclude. Decide the lifestyle : motor transport or walk, bicycle etc., restaurants, sports, private swimming pool, social etc. and view quite a few properties. Find out about neighbors and observe the local people. Some locations have many secure jobs ; others very few. Decide if you want a gated community or not. If buying into a community find out about the management. A community with a management with a 10 year track record or based with a major company is a plus.
Minor alterations are comparatively cheap so many people find fix-it-up properties attractive.

pi2

Criss gave you the best advice up to this point: TAKE YOUR TIME.

That means, rent first, get a feel for the area, then, once you know the town much better, make some inquiries. It's incredibly easy to buy, and extraordinarily difficult to sell, for the reasons you mentioned previously.

Well, incredibly easy to buy, and extraordinarily difficult to sell... That means there are lots of opportunities to negociate. Am I wrong?

Rep Dom said:

Well, incredibly easy to buy, and extraordinarily difficult to sell... That means there are lots of opportunities to negociate. Am I wrong?

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Popular types of property do sell when they are offered at a reasonable price. If you get lists from estate agents sold appears quite often. Sales seem to peak in the tourist season and just after. Considering that a deatched villa with pool can fetch upwards of $300,000 in many parts of the US and even more in areas of Europe and there is a chance of purchasing at 50% of this in desirable areas of DR it is not surprising this is attractive to many people. As in other parts of the World prime locations are at a premium.

Some estate agents and vendors consider negociation the norm - others are confident they can sell at or near the asking price in a rising market. As always there is more room to negociate on less desirable land and property.

The economy is also expanding and with it the demand from Dominicans.

In the end a retiree wanting a home or someone looking for property to rent had a choice between say Clearwater Beach, The Bahamas, areas in the DR, Mexico etc. The median price for a CB condo near the beach is in excess of $300,000. Each has its merits but increasingly the quite reasonable prices for prime property in the DR are attractive. Plus the improving infrastructure, low cost of living etc. are factors that buyers consider.



pi2

Yep Criss and Tamborista are correct. Come here for a period of time and rent, do not purchase initially. Then take your time and look around and search for what you want.

The Virginian said:

Yep Criss and Tamborista are correct. Come here for a period of time and rent, do not purchase initially. Then take your time and look around and search for what you want.

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It depends on your circumstances.

I flew into SDQ and went straight to the lawyer's to file for residency/cedula.

Drove around for a few days and bought some property..... never looked back.

To each his own.

I don't disagree with the "wait and see" advice, I'm just saying that perhaps the mind is made up - the table is set, the cake is baked, time's awastin'.

In that case, perhaps you should "get on with it", don't dilly-dally, strike the match, jump into the deep end, make haste...

I should write my own thread " An Alternative View".

In that case, perhaps you should "get on with it", don't dilly-dally, strike the match, jump into the deep end, make haste...

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I'm with Sr. Webster on this-- We came to Las Terrenas 4 years ago, and bought the 4th property we saw because I "knew" it was what I wanted---- You'll know, too, when you see the right place-- Paralysis by analysis can be deadly!

100 percent with not waiting for many people. Prices go up and all the time you may be paying rent. Strike while the iron is hot!

pi2

Any decision made in haste,can then be regreted at leisure"!
I do not believe that buying a property anywhere,especially here,without a Loooooong vetting process,is a good idea.
Telling someone to do otherwise is not doing them a service.
It's like on the "Mars Venus Forum" when a new poster asks if marrying her "Sanky" is a good idea.Fifty responses tell her "Definately NOT"!!!!!!!!!
Three tell her to "Go With Your Heart"!!!!
Which advice is going to do her the most good????
"Come,Rent,Wait,Watch,Decide!!!!"
CC

Matters of "the heart" may be different.

Sometimes people have a compelling reason to "change the scenery".

I'm not advocating either alternative, just pointing out that there is such an alternative .

Its hardly worth the discussion.
People sometimes will do what they will do regardless of ANY advice rec'd.