PUERTO RICO Real Estate—Things to Watch Out for When Buying a Home in Puerto Rico

Buying Real Estate
A few years ago, the hubby and I moved to Puerto Rico and purchased a townhouse in Dorado.

As an experienced Nevada real estate agent, I found the home buying process different enough that I wrote an article about it on LinkedIn. This article spawned over 135,000 views, 250 comments and is still a top Google result to this day for buying a home in Puerto Rico (link below).

Lately, I’m seeing a lot of interest in Puerto Rico Real Estate on YouTube, so I thought I’d follow up with a video on this topic.

Videos I’ve seen so far give nice, well-edited overviews of the shopping experience, but nobody has yet delved into the purchase transaction itself from the buyer’s point of view.

Puerto Rico is definitely a Buyer Beware environment when it comes to purchasing real estate. Here are the highlights:

1. Puerto Rico has an MLS, but hardly anybody uses it.

2. Commission structures are different, and this may affect what your agent shows you.

3. It’s a miracle if you do find a good buyer agent because their job is 10x harder than on the mainland.

4. Comparable sales data is available, but from a different source.

5. Verbal negotiations are done upfront, and everybody uses their own purchase contract.

6. Agreements are structured as option contracts, and deposits are bigger.

7. You simply must have a lawyer, even if you have an agent on your side.

8. Mainland lenders don’t lend here, despite what their websites may say.

9. Local lending rates are much higher than on the mainland.

10. Language barriers may limit your mortgage choices, and banks won’t guarantee rates.

11. You can get a home inspection, but they tend to sell as-is.

12. There is no escrow company, everybody shows up at the closing table.

13. Closing will take hours, but if you’re lucky you’ll hear some interesting life stories.

14. If you want your walkthrough to happen before closing, remember to put it in your contract.

Details are in the video, and this was our experience. Your experience may vary.

In preparing this episode, I reached out to some other folks who have purchased more recently on the island to see if much has changed since I bought a few years ago.

Most reported going through a similar experience.

I also asked them if they had anything to add, in terms of things to look out for, and boy did they ever, so in next week’s video, I’ll be sharing what they told me…

So hit that subscribe button and the little bell to be notified when that video comes out.

Have you bought property in Puerto Rico?
What was your experience?

Please share your thoughts in the comments below, as it helps everyone learn.

LinkedIn Article: https://www.linkedin.com/pulse/20141111173110-2770865-14-things-we-learned-buying-a-home-in-puerto-rico/

Clasificados Online: https://www.clasificadosonline.com/

Tasamax: http://tasamax.com

*****LIVING IN PUERTO RICO VIDEO SERIES*****

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#PuertoRicoLife #Over50

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