My real estate clients often complain about the Costa Rica MLS system, or rather the lack thereof…
But, wait, we do have an MLS system. At least that’s what we longingly call it. It just operates a little (well, a lot) different than what you might be used to…
The typical MLS (or “multiple listing service”) is a database established by cooperating real estate brokers to provide data about properties for sale. Typically, multiple listing services create an electronic database with all of the properties for sale by affiliated brokers, who update it on a regular basis.
Our Costa Rica MLS system isn’t quite that sophisticated. It sort of works like this…
One is the open listing…
Open listings were the way things used to be normally done. An open listing contract gives the agent the right to sell, but the seller also retains the right to sell, via his own efforts, or with any other agent or agency he or she chooses. If I have an open listing with a seller, the only way I will generally be paid is if I bring the buyer to the table. If the owner brings the buyer, or if any other agent or agency brings the buyer, I’m out of luck.
Many sellers still think that the open listing is the way to go. However, here’s the rub, or rubs. First, the onus will be on the seller to disseminate the listing to various agents. In other words, he will have to enter into a separate open listing contract with each agent he wants to represent his property.
The other rub is that any agent who does list it stands a good chance of wasting a lot of effort to sell it, only to have it sold out from under him by another agent, or the seller him or herself. So, even though the owner can list the property with as many agents as he wants, none of them are probably going to be willing to spend too much time or money in marketing the property.
The other type of listing contract is the exclusive listing.
In the U.S. virtually all listings are of this variety. Of course, in the U.S. a seller knows that his property will be exposed to all agents in a given area by virtue of the MLS system operating in that area. Here we try to accomplish the same thing for our sellers, but in a much more rudimentary way.
When I go out and take an exclusive listing, it is up to me to disseminate the listing info to other area agents and make sure that they upload my listing onto their marketing platforms. I can only ask them to do it, I can’t force them do it. I can follow up with them to make sure it’s done, but often many of the agents who receive notice of my new exclusive listing either refuse to post it, or just forget to.
The other problem with our non-systematic system, is that if there are changes to the listing, again the onus is on me, as the listing agent, to inform everyone of those changes and make sure they are actually implemented. Again, I can do my best to make sure this happens, but, as you can imagine, things often slip through the cracks.
Open listings are generally outside of the “system.” If I take an open listing, I’m not going to share it with other agents, who can simply then go behind me and deal directly with the seller. So, if you see properties floating around that don’t appear on multiple sites, chances are that they are open listings. The good news is that these days, exclusive listings are more the norm.
So, what’s a buyer to do? How can you be sure that simply by looking at my site, you are getting exposed to all the stuff that’s out there, especially given this quirky system we have operating down here?
Well, you can’t be 100% sure. Does that mean you need to contact every realtor in a given area and survey all of their inventory in an attempt to “cover the market.” Sure, you can do that and many buyers do.
In my opinion that’s not entirely necessary, nor advisable…
The purpose of this post is to inform you about how our “system” works, even if not like a well-oiled machine. Nevertheless, we do have a system. You can get a pretty darn good idea about what’s out there by looking at the Coldwell Banker Dominical Realty site, for instance. That doesn’t mean you’ll see “everything” that’s out there, but you’ll see most of it, certainly the really good stuff. And if there is something in particular that you’ve found that you don’t see, all you have to do is let me know and I’ll track it down for you.
There are a few problems with this approach. For one thing, it’s going to take more work on your part. Why not find a realtor you’re comfortable with and let him do that work for you. You’re also very likely to cause confusion, like when you see a property with one realtor and then see it again with another. Finally, if we know that is how you’re operating in our market, that is, by contacting every Tom, Dick and Harry agent in town, we (meaning me, for instance), are less likely to really want to roll up our sleeves and work really hard for you. It betrays a depressing lack of loyalty, if you know what I mean.
You can read this post as a suggestion of how to operate within the Costa Rica MLS system. Now, I’m speaking specifically about my area of the southern zone. I’m not completely sure how things operate in other well-established markets, like Manuel Antonio or Tamarindo, for instance. But I believe it is very similar to what is described above.
Happy house hunting in Costa Rica!