Selling farms and lots is the business that has remained active in the real estate market for the longest time, which has also evolved from the sale of land to the sale of businesses and investments. If you want to sell a property of this type, it is important to know the profiles of buyers, the categories with the highest demand and the projections in real estate. Before starting the sales process, some preliminary steps must be taken to help guide and develop each stage in the best way, avoiding conflicts and guaranteeing the benefit of all parties involved.

Why sell farms?

Objective Factors

It’s best to first consider why you want to sell your property. At this stage the owner analyzes what their post-sale needs are and what he or she expects to obtain at the end of the process. Some possible reasons may be:

Improvement in quality of life
Relocation of residence
Further investment
Payment of urgent debt
Other miscellaneous reasons

For the owner, the history of the property must also be taken into account. Examples include consideration of whether the property was inherited or was a family home. Investments into improving the property and expenses incurred for repairs and must also be noted.

When establishing the reason for sale, it is key to establish what the owner expects from the sale, including the initial asking price and potential for negotiation, the estimated timeframe for placing the property on the market, and what, if anything else, the owner expects to obtain from the sale.

It is crucial to contact a real estate consultant to help you not only analyze a fair price according to the market, but also sketch out profiles of potential buyers who may be interested in your property.

Many variables must be included in this equation, such as location, availability, mortgage studies, inventories, m² values for the area, municipal taxes, and many other factors specific to

individual areas of a particular market. Prices are given in ranges and are estimates, because at this early stage no prospective buyers have been approached and market sentiment cannot be reliably established.

Subjective Factors

The owner must also keep a variety of so-called ‘subjective’ factors in mind in order to be able to place the property at the right point in the market. They are ‘subjective’ because they seek to establish an “emotional panorama” of potential interested buyers and create a well-defined and suitable strategy for marketing your property. Questions that will help in the development of an effective marketing strategy include:

Where can I place my property in the market to increase chances of success?
Why would a buyer invest in my property?
What makes my property stand out from other options in the market?
What benefits does my property have for a potential buyer?

It is essential to contact a real estate agent to for professional assistance in this complex and critical process. The use of digital tools and platforms will help in positioning your property as the best option, having a wider reach, and creating a filtering process in which interested potential buyers are studied beforehand for maximum success.

Final Steps for Presale

Before putting the property on the market, the seller and agent must gather information that determines its real value, capabilities, and sale potential. Having this information handy before listing the property will help to create a profile of potential interested buyers, thus further ensuring the property is positioned properly in the broader market.

Presale essentials include:

Cadastre Plan: This graphically represents the area and boundaries of the property, allowing verification of property data and confirming important information such as the presence of easements. This document must be in good condition and legible. In case you do not have it or if it is in bad condition, you can get a new one here. You must choose the type of product you need – the cadastre-scale plans (real size), or if you need cadastre- certifications (letter size). To enter the above link you must have previously registered in RNP Digital.
Liens and annotations: Encumbrances are charges on the real estate for the payment of a debt. Title annotations are provisional and are subject to the outcome of ongoing litigation. This is important information for all parties involved in the sale process and is obtained through a registry study.
Land use: The best thing here is to have the certificates of use, since they define the limits and potential of the property. Examples of land use certificate types are commercial, mixed, residential, and agricultural, and this document must be requested at the municipality of the canton where the property is located.
Construction plans: This provides information on the structure of the constructed building, including electrical wiring, piping, and septic tanks, among others.
Appraisals: Having updated and reputable appraisals is critical as they may become invalid over time, as depreciation or appreciation of a property is done annually on an official level.

All the information obtained from the instruments above helps to determine the real value of the property. Important to note is that listing property for Costa Rican nationals is not that same as for foreigners, and variables can change for those interested in investment or for those looking for homes, for example.

Clear communication with the advisor is essential to avoid conflicts in the buying and selling process.

Type of Properties

The conditions to sell farms will depend on the type of property you have. The main types are:

Productive farms: They are independent lands but unlike the lots, these are dedicated exclusively to the production of goods. They have specific regulations because they must ensure the rational use of the land and environmental sustainability.
Recreation farms: These properties do not have a specific measure, but their main characteristic is that they have spacious green areas and a house that is generally used for recreation and not for housing.
Commercial properties: It is any type of property that is used for profit, whether they are office complexes, commercial premises, restaurants or other types of services.
Industrial Property: These are lands with land uses intended for industries and business projects.

In addition to being clear about the type, the variables and specifications of the property to be sold must also be known. Here is the important information you need to know if your property has any of these variables:

Specifications according to the property:

Sell farms in rural areas:

Have knowledge of the regulatory plan of the Municipality to which it belongs to understand what is the percentage allowed to build, whether segregation is allowed or not and if there are easements.
Telephony and internet facilities.
Know if the water is municipal or if it is roasted. Also have information on registered or unregistered springs.

Sell Farms in commercial areas:

It must be in compliance with Ley 7600.
Have land use certificates for commercial or industrial type and with the definition of the area that can be used for it.
Know the access routes and the commercial attractiveness; as well as the availability of parking.
If it is an industrial property, access to electricity and voltage must be clear according to the needs of the buyer.

Permits and regulations to sell farms

In the transactions of selling farms, the owner who wishes to sell has the responsibility to inform the buyer of the following important aspects for the planning of the development of the property:

1. Are there protected areas and/or zones? Because by law it must be respected and shown limitation of use of the land in question.
2. Are there tributaries, rivers and springs within the farm? Since for each one there are regulations and permits to respect and abide by the withdrawals for their protection contemplated in the national water law.
3. Is the property under negotiation located in the zone or area of influence (Ai) of a national park, national reserve and indigenous reserve? Given that the intended use of the farm or project to be established depends on this, because it CANNOT negatively affect or impact the Ai.

Knowing this information prior to placing the property on the market will give you an advantage when selling, as interested buyers will have a broader understanding of the potential and capacity of the purchase.

If you have specific questions about where to obtain information or about any issue related to the sale of your property, do not hesitate to contact our NATIVU advisors.

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