How to determine value of a property?

eperc002

Newbie
Jan 26, 2019
5
0
0
Hello,

I have been traveling a lot to DR, and I will like to purchase a property with financing options. (I will be getting my dominican citizingship in the next couple month - parents are dominicans).

I'm a real estate broker in the U.S and have flip some properties, here you can determine the value of a property by looking at the comparables properties that have sold in close proximity in the last 3 month. Here in the states property sale records are public and are available on the internet.

How can this method be applied in the DR? Are those record public somehow? How do appraiser really determine the value of a property in DR? I don't want to hire an appraiser for every property I look at (and I like to look at a lot & make multiple offers)

I'm used to making offers here in the U.S without even seeing the property in person sometimes.


Help will be appreciated, thanks!
 

cavok

Silver
Jun 16, 2014
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This was discussed on another thread(maybe you can search it), but it is impossible to do comps here like you can in the US.

Some of the bigger brokers can help some, but it's hard to know which ones to trust. With enough time and effort you'll have a good idea, but it's not easy like it is in the US.
 

eperc002

Newbie
Jan 26, 2019
5
0
0
Main reason why I ask, is because I just came back from DR, and I was walking around my grandmother neighborhood in santo domingo with her, and she started pointing at house that have previously sold in the past and she was telling me they sold for 4-5,000,000 pesos. I went to cotoros.com and search similar properties in her neighborhood and the average asking price for similar homes are between 10-12 Million pesos. Found it strange that there's such a different between what she told me and the asking prices
 

eperc002

Newbie
Jan 26, 2019
5
0
0
Main reason why I ask is because I just came back from DR, and I was walking around my grandmother's neighborhood in santo domingo with her, and she started pointing at house that have previously sold in the past and she was telling me they sold for 4-5,000,000 pesos. I went to cotoros.com and search similar properties in her neighborhood and the average asking price for similar homes are between 10-12 Million pesos. Found it strange that there's such a difference between what she told me and the asking prices
 

Dr_Taylor

New member
Oct 18, 2017
351
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0
Main reason why I ask is because I just came back from DR, and I was walking around my grandmother's neighborhood in santo domingo with her, and she started pointing at house that have previously sold in the past and she was telling me they sold for 4-5,000,000 pesos. I went to cotoros.com and search similar properties in her neighborhood and the average asking price for similar homes are between 10-12 Million pesos. Found it strange that there's such a difference between what she told me and the asking prices
I just went to cotoros.com and it was for sale. In any event, proceed with caution and research the thread that already covered this. As with anywhere, the actual, i.e. final, sale price does not always appear in the listing; hence the comparable analysis. For example, I know of a U.S. property record that claims that the seller sold it for $1. Now, we both know that it was more than that.
 

windeguy

Platinum
Jul 10, 2004
42,211
5,966
113
Hello,

I have been traveling a lot to DR, and I will like to purchase a property with financing options. (I will be getting my dominican citizingship in the next couple month - parents are dominicans).

I'm a real estate broker in the U.S and have flip some properties, here you can determine the value of a property by looking at the comparables properties that have sold in close proximity in the last 3 month. Here in the states property sale records are public and are available on the internet.

There is nothing like that here.

How can this method be applied in the DR? Are those record public somehow? How do appraiser really determine the value of a property in DR? I don't want to hire an appraiser for every property I look at (and I like to look at a lot & make multiple offers)

It cannot be done here easily at all. There should be a record of sales, but I understand you need to be a lawyer to have access. I have never heard of an appraiser here. But keep in mind that everyone can be a realtor since no license is necessary.

I'm used to making offers here in the U.S without even seeing the property in person sometimes.

Because of the above, I am sure you can see that is foolhardy to do here.


Help will be appreciated, thanks!

The bottom line is that things sell for what people can get for them with little knowledge of comps coming into play. That makes it much easier to buy (not knowing if you made a deal or not) than to sell here. Far harder to sell than in the US. Good luck, but you really have to be here and learn as much as you can about a given area to even come close to knowing what a property might be worth. Makes one wonder why a "comps" system is not considered. It would help the realtors immensely.
 

bob saunders

Platinum
Jan 1, 2002
32,504
5,932
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dr1.com
The bottom line is that things sell for what people can get for them with little knowledge of comps coming into play. That makes it much easier to buy (not knowing if you made a deal or not) than to sell here. Far harder to sell than in the US. Good luck, but you really have to be here and learn as much as you can about a given area to even come close to knowing what a property might be worth. Makes one wonder why a "comps" system is not considered. It would help the realtors immensely.

We just bought a lot ( 1038 metres) for 1,700,000 pesos. Flat, on two roads, quiet, good well, surveyed, proper title and a house for sale across the road for 12,000,000. There is no way in hell that house will sell for that pice. Nice yard that is not maintained, same for the house, not even fresh paint or water stains removed. I have bought and sold numerous houses in Canada, and several here. It is really hard to access value or selling price here. One can find selling price and asking price without difficulty. Usually there are numerous unauthorized sellers.
 

LTSteve

Gold
Jul 9, 2010
5,449
23
38
Hello,

I have been traveling a lot to DR, and I will like to purchase a property with financing options. (I will be getting my dominican citizingship in the next couple month - parents are dominicans).

I'm a real estate broker in the U.S and have flip some properties, here you can determine the value of a property by looking at the comparables properties that have sold in close proximity in the last 3 month. Here in the states property sale records are public and are available on the internet.

How can this method be applied in the DR? Are those record public somehow? How do appraiser really determine the value of a property in DR? I don't want to hire an appraiser for every property I look at (and I like to look at a lot & make multiple offers)

I'm used to making offers here in the U.S without even seeing the property in person sometimes.


Help will be appreciated, thanks!

The only thing you can really do in the DR is to look at what is being listed on realtor websites in the DR and compare those to what you are looking at. Obviously you have to take into account, location, location, location.
I would proceed slowly in the DR. Buyer beware. As you know this industry is unregulated. I would low ball any offers. You can always come up in price. The market will ultimately set the price for you.
 

Celt202

Gold
May 22, 2004
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944
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The selling strategy of some here is:

1- Put it on the market for X pesos.

2- If it doesn't sell after Y period of time raise the price.

3- See 2

4- See 2

A good preparation for living in the DR is to read Lewis Carrol's Alice's Adventures in Wonderland and Through the Looking Glass.

This ain't Grand Prairie.
 

bob saunders

Platinum
Jan 1, 2002
32,504
5,932
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dr1.com
That is almost exactly what we are looking for. What area?

la Joya, la Calle los pintores. There are other solars in that area for sale. Wells are required. Ours is 160 feet, at 950 pesos per foot. It isn't isolated but because it is a no through road there isn't much traffic. Same road as Jarabacoa Hostel (Jehovah Witness hotel)
 

eperc002

Newbie
Jan 26, 2019
5
0
0
Ok so I read a couple of the previous treads on the subject, and usually what people do is contact multiple RE agents till they hopefully find "a somewhat trustworthy agent".,

So there's a lot more leg work to be done in DR, which I don't mind

But my main concern is that here in the U.S I don't trust RE agents because agents are always thinking in terms of commission many here don't show properties because they offer a low 2% instead of the industry standard 3%. I don't even trust brokers. so I'm guessing it would be even harder for me to trust an agent in DR since they're not regulated.

Now my question is,
Do RE agent in DR have some type of MLS system that they have access to multiple property listing? if they do how can one have access to it?

If they don't how to RE agents find properties?

If I wanted to be my own RE agent and willing to do the leg work what methods can I use to find properties? other than just Driving or listing websites

If I want to buy a repossed bank property how can I go about finding these types properties?

thanks
 

ctrob

Silver
Nov 9, 2006
5,591
781
113
So there's a lot more leg work to be done in DR, which I don't mind

But my main concern is that here in the U.S I don't trust RE agents because agents are always thinking in terms of commission many here don't show properties because they offer a low 2% instead of the industry standard 3%. I don't even trust brokers. so I'm guessing it would be even harder for me to trust an agent in DR since they're not regulated.

If you're in a hurry, you will pay more then you should. No way around that.

Now my question is,
Do RE agent in DR have some type of MLS system that they have access to multiple property listing? if they do how can one have access to it? If they don't how to RE agents find properties?

No such thing as MLS. Word of mouth, driving around, friends, neighbors, walk ins, etc

If I wanted to be my own RE agent and willing to do the leg work what methods can I use to find properties? other than just Driving or listing websites
Driving around is best, browse websites, and drive some more. Plan on spending a year learning the rules. The longer you study and mroe educated you are on the subject, the less money you'll spend on the property.

If I want to buy a repossed bank property how can I go about finding these types properties?
Forget that, it doesn't exist.

thanks[/QUOTE]

I don't know your age, but it's like in the States in the 50's selling real estate, but with internet. That's what you got in the DR.
 

Cdn_Gringo

Gold
Apr 29, 2014
8,671
1,133
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eperc002, just stop trying to make sense of all this. Save yourself the stress. Buying and selling property here is a free-for-all for all the reasons already mentioned and more.

While the process appears similar to what you are used to it is not. There are few consumer protections, there are no professional organizations, there is no specific training or code of conduct for real estate agents or the govt depts. that you will need to navigate. Many of the lawyers are just as predatory as the agents and the sellers.

You are a foreigner, you are expected to pay more. Everyone involved in the transaction will be working to that end. Everyone is trying to separate you from as much cash as they can.

A property is worth only what you are prepared to pay for it on the day you are willing to sign the purchase agreement. The national dream in the DR is that someday a foreigner will arrive on their doorstep with a boatload of cash and offer to give it to them. Most sellers to their detriment are prepared to wait until the day before they die to accept the reality that they will never get their asking price unless they luck into a schmuck - don't be that schmuck.

This is a buyers market. Lots to buy here if you are sure that is what you want to do. Whatever you buy, you will probably be leaving to someone else in your will as foreigners have a hard time selling too. Often it takes years to sell a property unless you are giving it away.

Do not believe your agent, do not believe your lawyer, do not believe the seller, do not believe anyone else you talk to. You can only believe that which you verify as being true yourself.

Good luck. You are about to enter the Twilight Zone.
 

bob saunders

Platinum
Jan 1, 2002
32,504
5,932
113
dr1.com
eperc002, just stop trying to make sense of all this. Save yourself the stress. Buying and selling property here is a free-for-all for all the reasons already mentioned and more.

While the process appears similar to what you are used to it is not. There are few consumer protections, there are no professional organizations, there is no specific training or code of conduct for real estate agents or the govt depts. that you will need to navigate. Many of the lawyers are just as predatory as the agents and the sellers.

You are a foreigner, you are expected to pay more. Everyone involved in the transaction will be working to that end. Everyone is trying to separate you from as much cash as they can.

A property is worth only what you are prepared to pay for it on the day you are willing to sign the purchase agreement. The national dream in the DR is that someday a foreigner will arrive on their doorstep with a boatload of cash and offer to give it to them. Most sellers to their detriment are prepared to wait until the day before they die to accept the reality that they will never get their asking price unless they luck into a schmuck - don't be that schmuck.

This is a buyers market. Lots to buy here if you are sure that is what you want to do. Whatever you buy, you will probably be leaving to someone else in your will as foreigners have a hard time selling too. Often it takes years to sell a property unless you are giving it away.

Do not believe your agent, do not believe your lawyer, do not believe the seller, do not believe anyone else you talk to. You can only believe that which you verify as being true yourself.

Good luck. You are about to enter the Twilight Zone.

Pretty much the truth. Most Dominicans have an overinflated sense of what their land is worth. Here is Jarabacoa anything close to the city center is very expensive and yes they sell. In the campo around there are many gated developments and these are justifiably more expensive as the seller has put a lot of money into the development. I think one of the things that make it more difficult to sell here is there is little enforcement of standards so your beautifully maintained semi-mansion can have shack on one side of it and a moto-garage on the other side....etc.
 

cavok

Silver
Jun 16, 2014
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Being an independent real estate agent here is not easy. Be prepared to starve for a while.

There is no MLS and almost all listings are open listings. Standard commision is 10%.

You cannot get comps by going to the equivalent of the property appraisers office. Very difficult and time consuming here.

To get listings, start your own website and drive around checking out "se vende" properties.

Lawyers and their friends get almost all the foreclosed properties. Again, it's not like in the US.
 

Drperson

Well-known member
Sep 19, 2008
1,061
290
83
Pretty much the truth. Most Dominicans have an overinflated sense of what their land is worth. Here is Jarabacoa anything close to the city center is very expensive and yes they sell. In the campo around there are many gated developments and these are justifiably more expensive as the seller has put a lot of money into the development. I think one of the things that make it more difficult to sell here is there is little enforcement of standards so your beautifully maintained semi-mansion can have shack on one side of it and a moto-garage on the other side....etc.

I have seen this first hand. Someone builds a beautiful house and the next day a bar opens beside you and runs music 24 hours a day and in another case a diesel repair shop
 

Celt202

Gold
May 22, 2004
9,099
944
113
Groucho Marx's insights into Florida real estate can be applied to DR real estate.

[video=youtube_share;nPTqrFas9Bo]https://youtu.be/nPTqrFas9Bo[/video]