What ! No M.L.S. ? How do I get Comps ?
What's a fair price to pay for Real Estate in Medellin or Colombia for that matter ?
Throughout Latin America, you are unlikely to find a functional MLS system. North Americans have been privileged and spoiled with the ability to search and research virtually any property that becomes listed. This is sadly lacking in the less developed countries. As a result if you plan to buy in a foreign location how do you determine if you are paying a fair price ?
Don't deal with an agency or agent that does not have an office. BTW, the corner cafe does not count. If the agent/agency do not have a ''shingle'' then think twice. In most Latin American countries agents are not licensed so in Colombia, everyone - the taxi driver, bartender, waiter, dentist..... all know someone who has a property for sale.
You can do some initial research on your own. In Colombia there are a number of websites that list properties for sale and although it is not as easy as in North America, you can compile a list of properties for sale. Try to define your search by age, price and size (metres squared). Smaller units under 100 m2 may be slightly higher priced and properties over about 250 m2 should be slightly lower in price/m2. If the ad says the unit has been renovated, look closely at the pictures - one person's version of a renovation may be completely different than yours.
Recently one of the agencies did a study of properties in El Poblado in the 70m2 to 100m2 range. They determined that the average price is around 2.900.000 COP per m/2. This price may be slightly skewed because new properties are selling for 4.000.000 COP/m2 and up so if there were more newer properties on the list the price /m2 will be higher.
On March 15, I did a review of 130 properties by size - approximately 100m2 to 200m2. The average price was approximately 2.700.000 COP/m2. I was looking at properties in the 20 to 30 year year and saw a range of about 1.500.000 COP/m2 to 2.300.000 COP/m2. Off course there are always some deviations but nevertheless this is information that is available on line and you can, with a little effort determine an average price for a property. While it may not be a perfect method at least you can be prepared for what the variation in pricing you might find for the properties that you are hoping to view.
Location, condition of the building, amenities and the view may also affect the cost. In older buildings rarely do you pay extra for a penthouse. In a new construction, usually after the 5th floor, you will pay a premium per floor.
Steckenreiter Serna and Associates can help you in your search for Real Estate in Medellin and Colombia. We are affiliated with reputable firms and would be happy to assist you. Not only that we manage all aspects of Real Estate Law. We can also guide you how to utilize this purchase to assist you in obtaining Colombian Visas.
www.steckenreiterserna.com - we specialize in Expat Services !