Trend of Real Estate prices in Cabarete...

I suppose luxury always comes at a price ! and properties on the beach will always retain their value, unless they get washed into the sea

Sale prices, I can't say... as I'm not aware of much that's sold.

I know of two Cabarete oceanfront units where asking prices have been dropped 20% vs 18 months ago... from $700k to $550k and as of now, no takers.

Well, I don?t know anything about real estate, or the prices in Cabarete, but I have found in my life the successful transactions have always included people that not only have area expertise, but also have high personal ethical standards as well. This is especially important here in Cabarete because there are definitely some bad actors here.

I would definitely want to make sure I had a good agent (and then some). I would stay away from expats that moved here in the last couple of years, don?t speak the local language (and if they claim to speak Spanish drag someone that really DOES speak Spanish with you to have a complicated\detailed conversation just to make sure), and has a very spotty work history (like getting fired from their last 2 jobs would not be a good thing).

I would look for information on their website, and ask for examples of their claims. I would ask for proof about a claim of ?25 years of developing properties in Canada and the US? (developing what?), whether the agent held another job at the time (and whether these two careers would even be possible?legally or ethically?at the same time).

I would walk around Cabarete and ask anyone that has a business here what they thought of this realtor (personally, professionally, would they do business with him, etc). If they are reluctant to say anything, you should take that as a warning sign.

Be cautious about agents that may be attempting to cloak their business in Religion or their ?charitable work?. The good quality business?s here do support the local community, and may have a minor mention of their involvement with an organization here or there (which is absolutely fair game). But if the claims (either on their website or during conversations) appear to be exaggerated this should tell you something.

AND I would Google the owners name (and search for the name on DR related message boards like DR1 and Dominican Today) to see if there is any writing out there that would shed any light on this persons character, values, how they relate with others, etc.

I suspect you were lucky enough to have already started receiving PM?s from some of the agents in Cabarete. Start running those through the process. I don?t know if that will help you find the right agent, but it will definitely help you start weeding some out immediately.

Good luck!

micha said:

Condos or Villas?

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oceanfront condos. no takers yet, but there appears to be some interest at this price.

Micha,

Good question about pricing of real estate in Cabarete relative to global economic downturn. I co-own a local real estate company specializing in quality oceanfront condominiums and will give you my own perspective on pricing trends in Cabarete.

There is certainly truth to the fact that most real estate in the D.R. is paid for in cash so the need to sell is less urgent than in a situation where you can't make your next mortgage payment due to a loss of job, etc. There is one reality however and that is that local real estate sales across the board have been extremely slow in the past 8-12 months and as a result there are owners out there that for various reasons really want to sell, often asking less than their original purchase price a few years ago. Savings may be in the 20-30% range which may not seem like much compared to some distressed areas in the US, but it does give anyone purchasing real estate here some reassurance that there is value in their investment.

I have discussed selling trends with other real estate agents and also with a real estate lawyer we frequently use, and we all agree that most real estate that is selling right now is in the $150k-200k range. As a result of this trend, the undervalued units in this price range are slowly being absorbed heading into the "busy" season. On the other hand, condominiums in the 500K to 2 million dollar range will see lower relative pricing for at least another year. The higher price range of condominium is relatively new for Cabarete, having been built only 3-4 years ago and there are not yet many clients (as Palmera found out) that can afford this, while at the same time be willing to put up with the local chaos and lack of being pampered with 5 star amenities, golf courses and marinas.

My advice to anyone looking to buy real estate is to buy quality and the newer the better. Construction techniques have vastly improved over the recent years and an older building will bring with it many problems. Buying construction from a reputable builder, within easy walking distance to the ocean will ensure that the intrinsic value of your purchase will be preserved for years to come. This is especially important since real estate prices are likely to be in a tighter range for some time.

micha said:

.... Realtors will just say that there are no motivated sellers here, because everybody purchased their property in cash...

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Well, another proof that the best lie is half the truth. Yes, most property bought in coastal regions are cash deals, since there is virtually no realistic financing available on private deals for these types of properties. But lets not forget, that while Cabarete certainly being a very special case because of it's unique situation, the Euro and US real estate bubble of the mid 2000's had it's hand in the raise of prices and more than one way. One of them HAS led to the fact that many of these apparent "cash deals" are nothing else but imported credits: Especially home owners in the US have resorted to taking out "virtual" equity when the "value" of their homes back home rose so dramatically up until 4 o 5 years ago. Interest where "low" (for the time being) and it seemed a cool way to export a fist world type mortgage to a Caribbean dream location. I don't need to go into big detail as to how this now backfired... obviously many if these buys now NEED to be sold so these buyers can save their own homes "back home".

Still yes, prices have APPEARED to stay strong... there are however just no sales to substantiate them.

Since there are virtually NO public records available to the prospect buyer, it is VERY difficult for them to "see" what effectively sold at what price. Agents will certainly not tell you unless you are trying to list a property for sale yourself.

As always, I would recommend to proceed with utter precaution, an open mind and a cold heart (do NOT fall in love with a property) and bargain HARD, very H A R D .
As everywhere, buying is easy here too. But selling has become very, very difficult.

... J-D.

buying my last property i used a buyers broker or rep. Not sure if they are in use here. I will use one here if i buy. I saved $5k us ,Paid them half at the buying table.

futuro said:

buying my last property i used a buyers broker or rep. Not sure if they are in use here. I will use one here if i buy. I saved $5k us ,Paid them half at the buying table.

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Brokering is not effectively regulated in this country. They don't have a fiduciary duty to their customer. There is no REAL real estate school or government test or exam (well, there is a "school" and self declared "official board" around, but nobody takes them seriously anymore).
There certainly are professional and morally concious and respectable people around acting as real estate agents, but there is nothing which would legally hinder one of them to dance on both parties at the same time.
So, to find a dedicated buyer "agent" as you probably know it in your country of origin, will depend on KNOWING and being able to TRUST somebody of impeccable moral standards before you entrust them your representation. That could be anybody you know and who has proven knowledge and expertise in your target locations real estate market and the necessary contacts.


... J-D.

good realtor is william oosterman in cabarete prestige realty he is from canada and owns the casa blanca hotel in cabarete.we used for our purchase very knowledgeable and good

J D Sauser said:

So, to find a dedicated buyer "agent" as you probably know it in your country of origin, will depend on KNOWING and being able to TRUST somebody of impeccable moral standards before you entrust them your representation. That could be anybody you know and who has proven knowledge and expertise in your target locations real estate market and the necessary contacts.
... J-D.

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Well said JD .. We were very lucky when we bought our condo. We managed to hook up with an estate agent (as we call them in th UK) who turned out to be thoroughly honest, reliable and trustworthy enough to the point where she now looks after our apartment when we are away from the DR. A lot of the agents I researched seemed, on the face of things, to be good .. reliable .. honest .. etc but time has proved them otherwise.
The story I'm trying to get across is to try and get a recommendation from a friend (or perhaps a fellow DR1'er) before entrusting your hard earned money to a stranger.
(PM me if you want the name of the estate agent we trust)
IMHO
Tropical Regards
Reidy

One of my neighbors worked in a real estate office in Caberete that was directly across the road from where Miro's is/was. It is on the second floor. It is odd that there are so few real estate offices in Caberete because there seems to be more than a dozen in Sosua.

There was a boom on real estate around Caberete but I think it has leveled off and possibly dropped off a bit. I've been watching real estate in the area for a few years and many properties have been on the market for a long long time. I see a lot of listing for over $100,000 per acre not even oceanfront which just seems crazy to me.

you do not use a good r e agent when buying... you use one when selling...honest etc.
when buying you need buyers rep.
when selling you want a good agent who is in the field of r.e. full time...
when buying a luxury property ,what do you want? to pay the highest price or the best-lowest?
r.e. agents rep and work for sellers..... not you the buyer. My opinion about the prices...going down , down

D.R. haven't been hit as hard compared to other nations i think it it haven't been hit at all to tell you the truth its still growing and that means its good news for real estate price stability because there is still a strong demand for real estate. But my personal opinion is that real estate will go down in D.R. its common sense everything does in a global depression BUT holding real estate in D.R. will be worth it in the long run. Good luck on your find hopefully you get a good deal

micha said:

Okay, I am new to this forum but not new to the DR. Been going there for 10 years now, this year alone I went on five trips to Cabarete for Kitesurfing and some partying. I also have been looking at properties on the beach or very close to it, but it is really hard to get a grip on price trends in the absence of a MLS (or is there one?). Realtors will just say that there are no motivated sellers here, because everybody purchased their property in cash and is just waiting to get their asking price (or at least very close to it). Of course I find that hard to believe. But on the other hand there is still a lot of construction going on here and prices seem to be detached from economic downturns in the US and Europe. May be somebody here can recommend a truly knowledgeable Realtor in Cabarete, or did anybody ever deal with Alex Urban from dr-luxuryrealestate.com ? Any input is greatly appreciated. Thanks!

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Hi Micha
It is true; people that bought in Cabarete are wealthy on the whole. They did not use a bank to borrow money. How do i know this?. DR banks lend at 25%; secondly it is rare that a foriegn bank will lend money on a house in another country...check that one for yourself. I know a lot of people in Cabarete ... trust me they have $$$$. Think about it, if someone can spend $300k of their OWN money on an apartment they will use 1-2-3 mths a year. Who can do that??? ...only the wealthy. Certainly not the working class, who consider $15k to be a lot of money. The only other type of person that lives in a wealthy area are those that bought into Cab' when it was cheap. I live in an area where there are $700000.00us homes.The working class can NOT afford these homes. Further if you bought it in cash you dont need to sell like the poor do when the bank wants to reclaim the debt ( forclosure). You can simply hold it. As i have done!!! im not in the slightest bothered by bank forclosure or high interest rates as i paid for mine in CASH. It is not my experience that wealthy people put everything they have into a holiday home and leave nothing at home for them to live on ... so therefore they are NOT in need of selling when times are tough!!!!
Wealthy people are not charities Micha, we dont need to drop our house price when the tough times arrive. We do not hunger for money in ways that are common to the working class. Whether you find it hard to believe is your own business. What you were told by the real estate guy IS TRUE. Infact, i had 3 homes listed at one time; buyers were playing poor and offering me ridiculous prices. I told them that i will never deal with you even if you offer a higher price... i was irritated! "But i cannot afford this much money he said to me". "do i look like a freakin charity"

billyidol said:

Hi Micha
It is true; people that bought in Cabarete are wealthy on the whole. They did not use a bank to borrow money. How do i know this?. DR banks lend at 25%; secondly it is rare that a foriegn bank will lend money on a house in another country...check that one for yourself. I know a lot of people in Cabarete ... trust me they have $$$$. Think about it, if someone can spend $300k of their OWN money on an apartment they will use 1-2-3 mths a year. Who can do that??? ...only the wealthy. Certainly not the working class, who consider $15k to be a lot of money. The only other type of person that lives in a wealthy area are those that bought into Cab' when it was cheap. I live in an area where there are $700000.00us homes.The working class can NOT afford these homes. Further if you bought it in cash you dont need to sell like the poor do when the bank wants to reclaim the debt ( forclosure). You can simply hold it. As i have done!!! im not in the slightest bothered by bank forclosure or high interest rates as i paid for mine in CASH. It is not my experience that wealthy people put everything they have into a holiday home and leave nothing at home for them to live on ... so therefore they are NOT in need of selling when times are tough!!!!
Wealthy people are not charities Micha, we dont need to drop our house price when the tough times arrive. We do not hunger for money in ways that are common to the working class. Whether you find it hard to believe is your own business. What you were told by the real estate guy IS TRUE. Infact, i had 3 homes listed at one time; buyers were playing poor and offering me ridiculous prices. I told them that i will never deal with you even if you offer a higher price... i was irritated! "But i cannot afford this much money he said to me". "do i look like a freakin charity"

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You may not have to sell your property, but it DOES decrease in value whether you paid cash or not. In fact, those who were leveraged prolly stand to lose less real $$$ than you do because they never put their $$$ into it.

Rich or not, leveraged or not, your property is subject to the same market conditions as everybody elses. The fact you don't "have" to sell makes no difference.

And it seems that any foreigner who can't get a job or create a business goes into RE in the DR. Why? Because anyone can do it. There is no real regulation. RE agents are like coconuts in trees here.

when you want to sell!! when it is listed or posted 4 sale, that is when negotiating for a lower price becomes effective..
a buck or a pound, $ is becoming more expensive..
sometimes i sell something at a loss. You can not win all the time. Ask the Donald...Punta cana...
Rich people need money at certain times.. not small money... chunks of it.....