To begin with, there really is no such thing as consistency in prices for Medellin Realestate. There are no MLS listings, realtors cannot pull comparables (comps), the property sizes are generally in square meters instead of square feet (1 Sq meter=10.763911 Sq. Ft) and except for new construction which generally has prices listed, re-sales are generally whatever the buyer will pay. Furthermore, like in many US cities or cities around the world, it really depends upon the location of the property. In nicer neighborhoods a 2,000 Sq. Ft. property will sell for more than in other neighborhoods.
Now, Medellin realtors are notorious for asking you, “how much do you have to spend?”, or “what price range are you considering?”. In the US, that equates to what properties a realtor has available in the Multiple Listing Service (MLS) to show you. Naturally, they want you to spend as much as you can because it means more commision for them. (Note: Medellin Realtors are not required to have any kind of license)
In Medellin, you may find every property you are shown will be the maximum of the price range you have volunteered. Never answer the question in the first place unless you have seen a listing price published on a property in which you are interested.
I had one realtor show me properties in a volunteered price range. every property was at the maximum of my range irrespective of size, age or location. It almost became preposterous on some of the real shabby properties he was showing me. I feigned illness and called a quick halt to our search. He bugged me daily, for weeks, to resume our search until I told him I had found something on my own.
What was funny, I had another realtor show me one of the same properties this guy had shown me. He showed me the listing information with the listing price clearly written. Ahem….50,000,000 pesos (about $25,000) lower than what the first guy had quoted me. He was planning to put $25,000 above the list price in his pocket. Local friends tell me they try it all the time.
The same thing can be said if you are rental apartment hunting. When they ask you how much you can afford monthly just respond by saying it depends on the apartment and the location. Ask to see their listing agreement with rental costs per month and narrow it down from there. Again, I had one agency showing me apartments. I told the guy I wanted to spend between 1.0 million and 1.3 million pesos per month (about $500-$650..yeah, they can be that inexpensive here). Suddenly, everything in all parts of the city he was showing me was $1.3 million pesos per month. I asked to see the listing sheets and he conveniently did not have them. Some of the places were tiny, some were large, some were old, some were new, some were in the nicest neighborhoods some were so far out I would have to spend a fortune in taxis to get anywhere. After about 4 hours of seeing places with this yahoo, he suddenly got the hook as well. Now, wanna hear the real rub. He only had a motorcycle. I wasn’t about to put my life at risk so I suggested we just hire a taxi for a couple of hours. I wound up paying for the taxi. He only had about 5,000 pesos in his pocket. Think an American realtor would make their client pay to see properties? Wouldn’t be in business very long would they?
Fresh air on the horizon. Medellin is becoming a very popular place for expats, people wanting to move here or retire here. Many have purchased second homes or investment properties. Well, as in most cases, when there is a demand, someone steps forward and fills the need. There are a couple of english speaking real estate offices opening here and they practice US business ethics when dealing with their clients. A couple of new web sites or splash pages are beginning to post rental apartments, condos, standalone homes and fincas for sale.
Medellin Travel Guide is beginning to accept listings for rental apartments, condos, homes and fincas on it’s web site complete with amenities, prices, locations and photos.
Do the Paisas like it? Probably not but a few of the local agencies have started to adopt listing prices and amenities along with photos of their available properties. One even has all of their listings computerized so when you enter their office, you can see everything they have available, prices, photos, amenities, location etc. Unfortunately, they do not speak a lot of English but they certainly are professional and seem legit. (Yes, I did some business with them and was very pleased).
If you visit www.firstamericanrealtymedellin.com , they have several pages of articles about investing in Colombia, Medellin, Medellin Property and general information about the economic outlook for this area. Several are worth the read.
If you are thinking about buying, renting or investing in realestate in Medellin, do your homework, do not be in a hurry, never give a price range unless you have seen listing prices first, never accept that an agent does not have listing sheets for each property and most importantly, look at several places in any building. You may find a very wide range of prices for essentially the exact same floor plan on a different floor. How do you find out if other properties in a particular building are for sale? Go back the next day and ask the portiero (security). They all know when a unit is for sale in their building.
In Medellin, as it does everywhere, it pays to shop.
Medellin Travel Guide
