​Working on Puerto Rican Time (Part 1)

[Pamela P.]

Buying a property in PR has been the most exciting thing I have ever done. Though I would be lying if I didn't saying it was also an aggravating process. Anyone who is considering buying/investing in PR should read this post. First, finding a full-time real estate agent is like finding a unicorn. Unfortunately after the 2008 recession, PR was hit so badly that being a full time real estate agent was no longer a viable option. Plus, PR doesn't have a standardize system like MLS, making the agent's job that much harder. If you are working with a buying agent, then he/she will have to call every listing agent to verify if the listing is still available. In many cases since there is no checks and balance, fake (pull ads) dominate the marketplace thus causing time wasted and extra work on the agent's part. Therefore, most real estate agents work part time (or less). If you really like a property, then reach out a couple of times to the same agent. Verify the exact address and ask for updated photos. It will show that you are serious. Also, if you do find a good agent that responds to your calls/emails, KEEP THEM! Even if their responses are slower than desired, this is just how business is done in PR. The sooner you accept the island-life work ethics, the easier this process will be for you… trust me. Lending… forget the ‘big box' banks – they do not lend in PR. There are a small pool of lenders that offer financing and because of that it drives up the interest rate. You can expect anything from 5.5% - 6.5% depending on capital, credit, etc. Also, the approval process can take about 3-4 months, expect to provide additional supporting documents every 2-3 weeks. All closings have to be done in person which is super inconvenient because they don't give you a closing date until the 11th hour. Flex your negotiating skills… You'll notice many properties have been sitting on the market for 6+ months. Interestingly, when I put an offer for an apartment in San Juan, I was suddenly in a "bidding war." This was very odd to me since it seemed like an opportune time. I decided not to move forward on that property. Then when I saw the property in Luquillo, I asked about other offers, which the agent confirmed none had been placed. Again, I put my offer and suddenly I was in another "bidding war." Don't let this tactic scare you into driving up the price more than you are comfortable with. Be ready to walk away if in fact there is another bidder. However, if you are placing a bid on a property that has been sitting for months with several price reductions, then it's likely your offer will be accepted… it'll just take some time. One week in fact. I learned AFTER I placed an offer on the Luquillo property that PR law allows sellers up to a week to respond to a buyer's offer. Clearly this is important to know in advance or else you'll think that the seller decided to go with another offer if you haven't hear from the agent after a couple of days. That is what happened to me, which is why I ended up paying $5K more than I would have liked for my apartment. Lesson learned for next time!