Negotiate Like a Pro:
What Every Seller Should Know Before Accepting an Offer
In Costa Rica, selling a home means more than just accepting an offer—it means negotiating smart. A Letter of Intent sets the stage, but nearly every detail is flexible: price, repairs, deposits, closing costs, even conditions tied to the buyer’s timeline. This guide walks you through what’s negotiable, what to expect, and how to respond with confidence—so you can protect your interests and move toward a successful sale on your terms.
What Can Be Negotiated in a Letter of Intent (LOI)?
When a buyer sends an LOI, it’s the first formal step—but not the last word. Here’s what you can (and should) negotiate:
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Purchase Price – Counter based on recent sales or added value (like view, finishes, or access).
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Earnest Money Deposit – Usually 10%, but flexible depending on risk and timing.
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Closing Date – Can range from 30 to 90 days. Adjust to fit your needs or timelines.
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Due Diligence Period – 30 to 60 days is typical. You can shorten it to create urgency.
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Inclusions – Negotiate what stays (furniture, appliances, tools) and what doesn’t.
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Minor and Major Repairs – Buyers may ask for work to be completed or request a credit. You can say yes, no, or offer alternatives.
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Conditions – Some buyers will add clauses like: “conditional on the sale of my home.” You don’t have to accept them.
🏦 Understanding Escrow
Escrow is standard in Costa Rica real estate—here’s what you need to know:
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Deposit Amount: Typically 10% of the purchase price.
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Held By: A licensed escrow firm agreed upon by both parties (e.g., Stewart Title, Secure Title Latin America).
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Refundable?: Yes—only if the buyer finds valid issues during due diligence and backs it with third-party reports. Otherwise, it becomes non-refundable and goes toward the final payment.
💰 Who Pays What?
Most closing costs in Costa Rica fall on the buyer—but some may try to negotiate. Here's the general breakdown:
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Transfer Tax (~1.5%) – Paid by the buyer
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Legal & Notary Fees (~1%) – Paid by the buyer
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Escrow Setup – Usually paid by the buyer, or split
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Due Diligence Costs (inspections, legal research) – Paid by the buyer
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Realtor Commissions – Not applicable (Arcadia charges no commission)
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Backpay on Utilities / HOA Fees – Paid by the seller (prorated to closing)
Note: Everything is negotiable. In some cases, sellers agree to share costs or offer credits if the price is firm.
🔍 Inspection, Repairs & Deal Adjustments
Buyers typically hire a local inspector to evaluate:
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Structure, roof, electrical, plumbing
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Septic condition and water pressure
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Moisture, mold, or structural damage
If issues are found:
Buyers may ask for:
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A price reduction
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A credit at closing
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Repairs before closing
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Or in some cases, to walk away (with proof)
You’re free to negotiate any of these outcomes.
💡 Pro Tip: If your home is being sold as-is, clarify that up front in your listing or LOI response.
🧾 Typical Buyer Expenses (For Context)
Here are common buyer-side costs (approximate amounts in USD):
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Home Inspection: $300 – $600
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Legal & Notary Fees: 1% to 1.25% of the purchase price
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Escrow Setup Fee: $500 – $800
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Transfer Tax: Around 1.5% of the purchase price
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Land Survey or Water Letter (if required): $300 – $1,000
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Title Research & Due Diligence: Often included in attorney fees
🤝 What Happens After Negotiation?
Once both sides agree on the LOI terms:
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The deal is handed off to a licensed Costa Rican attorney.
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The attorney drafts the formal Sale & Purchase Agreement (SPA).
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The buyer begins their due diligence.
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Once due diligence clears, the deal moves to closing.
✅ Tips for Sellers
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Don't rush—counteroffers are normal.
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Set an expiration on your responses to avoid delays.
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Always negotiate in writing.
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Know your floor price—and be ready to walk if needed.
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Ask us for support anytime. We’ve seen it all.
📄 Want to See a Sample LOI?
We’ve created a complete sample of what a buyer offer might look like—written in a way that protects both parties and reflects Costa Rican law.
