Confusion Is Normal When Shopping For Real Estate In Nicaragua
Anyone looking for real estate in Nicaragua who actually visits the country discovers there’s a glaring difference between online shopping and being here looking for a buying opportunity. It’s an understatement to say that it is confusing compared to the nice, tidy websites with posted prices.
The first shock most people have to deal with is that there’s no “listing agent”. Every property in Nicaragua is offered for sale by the owner… no matter what prospective buyers may believe or have been told. True, some sellers don’t want to bother with the selling process so may use the services of a go between. However, that go between can be anyone… a property manager, a lawyer, a relative or friend, or a “merchant” specializing in real estate. I say “merchant” because there is no such thing as a “real estate brokerage” in Nicaragua. At least not as a North American or European would understand the term to represent. Anyone can sell real estate, no matter if they have any prior experience or training of any kind.
Nica Investments only deals with the owners of property seeking to sell or lease. The mandate the company operates under is to advise clients seeking to purchase real estate as to the true value of a property, the potential for equity gain and/or income from a property, what renovations may be required and the cost, and if there are any grounds for concern surrounding a specific property. We’ll then walk clients through the purchase process and assure the property is transferred without incident.
Nica Investments does not add on an amount over and above what the seller wishes to receive as a commission. This is the norm in Nicaragua. A seller will offer a property to “selling agents” at what the seller wants, net. The agent must then add on an amount over and above that sum. Nica Investment clients retain our services on a per diem basis, and task Nica Investments with negotiating the best terms and purchase price possible directly from the seller.
Nica Investments also negotiates leases, which in Nicaragua is often a more advantageous approach to securing a property for business use. See Which Is Better – To Rent Or Buy for more information about leasing over purchasing property in Nicaragua.
Nica Investments does not maintain a list of properties for sale or rent, “listings” as a prospective renter or purchaser from North America or Europe would expect to see. There is no point. We do inform clients of outstanding properties through our newsletter or on our website, under Investment Opportunities. However, these properties are being offer for sale by owners. Nica Investments deems these properties we highlight to be exceptional because of price, location, size, view or a combination of these reasons.
If a property is priced well it sells quickly. Too quickly to make advertising it practical. Such properties Nica Investments will inform clients of directly via email and open negotiations on behalf of a client who retains us to do so.
If a property is overpriced or has issues prohibiting its being sold, it will last long enough to make advertising it worthwhile. However, it’s unlikely to sell quickly so it’s a waste of time and energy in most cases. Besides, in Nicaragua virtually every property in private hands is for sale. There are rare exceptions, but well over 90% of homes, raw land and commercial properties throughout Nicaragua can be purchased from the owner whether or not it is being overtly offered for sale.
What Nica Investments does is source properties that meet the client’s parameters. These parameters are type of property, price range, location, land use, size, and so on. We then approach the owners of properties that meet our clients’ criteria directly and attempt to negotiate an equitable agreement to purchase or lease.