Building Your Dream Home in Costa Rica

Contributed by Andrew Mastrandonas and Preston Gitlin from CRCommunities

Buying a home site and building your own home can be a daunting task anywhere in the world; it is no different in Costa Rica. However, with proper due diligence, and a realistic evaluation of budgetary concerns, the process can be the most rewarding way to express your dream of living in Costa Rica.

Tips For Finding Your Home Site

Find your climate. Costa Rica is subtropical, so it seems like a no-brainer to those arriving from the North. However, Costa Rica's mountainous terrain creates an incredible diversity of micro-climates. A few hundred feet in elevation can be significant. Rainfall amounts can vary, too. For those who can afford to, it is invaluable to see the country in both the dry season and the rainy season.
Find your town. First, read any one of the fine books published about Costa Rica. You will learn about the town history, the people, what modern conveniences are available, etc. Once you have found a town (or towns) that seems to suit you, plan your trip to Costa Rica to see for yourself. Ultimately, no amount of research is sufficient without experiencing a place firsthand.
Find your lot. Our communities are in San Ramon and have ocean views. We believe that the location is ideal, and offers a tremendous value. There are some fundamentals for lot buying that should be considered, regardless of location: title, infrastructure availability, and engineering. First, a lot should be researched by a lawyer who can obtain information from the National Registry to be sure that the property is clean, and has no issues outstanding. If the property is in a gated community, very often the developer will purchase a clean corporation for the property in order to make for an easy, less expensive transfer than a person-to-person sale, as well as to make it easy for the buyer to obtain their utilities. We have done this for all of our lots. The second consideration is the ease of installing infrastructure (if it does not already exist). Very often a lot that seems far cheaper than other similarly-sized lots will be raw land. The cost of infrastructure, viability, and placement can be very complicated. Be sure that you know the real state of the lot before purchase, taking into account the cost and time for development. Lastly is the engineering that a lot might require. Some of these "hidden" costs can include driveway engineering and installation, need for retaining walls (VERY costly), resolving drainage issues, creating a plantel (flat, buildable space), and being aware of home placement based on underground springs, nearby rivers, or road frontage.

Tips for Making Your Home Construction Easier

Have patience. Like anywhere, building a home is not a perfect process. Building a home in a developing country can be an even greater challenge. By selecting a builder with strong references, integrity, and a dedication to quality, you will find the process easier than you might expect.
Understand your financial situation prior to signing a contract. Obviously, building a home requires a significant outlay of money. Before deciding to start construction, assess your financial situation and determine both how much you can afford and when those funds will be available (if not immediately). Also, don't only think about the cost of building your home, but what it will cost to live in your home.
Know what you want. It’s important to have a good idea of what you want in a home prior to signing a contract. This will make the process go more smoothly and avoid costly changes once the process has started. However, this doesn’t mean you have to go it alone. If you are at a loss for ideas, talk to friends and family. Also, and probably most important, describe your needs to your trusted builder so he or she can come up with some ideas that may work for you.
Communicate. Reputable builders want to build you the home you’ve always dreamed of and will work hard to meet, and oftentimes, exceed your expectations. However, we find that the vast majority of issues arise due to lack of communication or miscommunication. Follow up in writing on all major decisions and don’t assume items mentioned in person or on the phone will always be remembered. Your builder will likely be working on several homes at once, so it’s important you confirm all details.
Be reasonable in your expectations. We realize that building a home is one of the most important decisions you will ever make, and it will involve a significant monetary investment. Your builder should realize this too. However, just because this is Costa Rica, it doesn’t mean it will be cheap, or it will be similar to building in North America or Europe. Things are different here (to some extent) and oftentimes things move more slowly than in your home country. However, a reputable builder is very experienced at operating in this environment and you should trust their judgment on what’s possible or not possible as you design and build your home.
Consider micro-climates. Costa Rica has many micro-climates. It might be sunny and 80 degrees in one spot, but windy, cooler and rainy just a few miles away. As you design your home, work with your builder to better understand the micro-climate of the area you’ve selected and how to build a home suitable for that environment.

What Does it Cost to Build a Home in Costa Rica? The final cost of your home will depend on two factors: how large your home is, and what type of finishes you select. A “cost-plus” basis is usually the best way to ensure that the construction process will be efficient, transparent, and timely. Typically, you can expect to pay roughly between $75 per square foot and $95 per square foot which will include permitting, architect’s work, construction, and the purchase and installation of most finishes such as kitchen cabinets, countertops, and appliances, flooring, kitchen/bathroom fixtures and associated plumbing, and lighting fixtures. Your builder will advise you on the type of finishes possible based on your budget. If you are unwilling to work on a cost-plus basis, a bid will be provided. However, in our experience, a guaranteed cost usually means a significantly higher profit margin for the builder. We’ve also found that sometimes contractors (the dishonest ones) will provide a low bid in order to get the job, but then surprise you later with “that wasn’t included,” etc. In addition, it is important to do as much thinking and research about the type of home you want, the layout, size and of number of rooms, whether you want a guest house, garage/car port, pool, or other structures, prior to signing a contract. Re-work during the construction process not only can lengthen the time to complete your home but also will likely increase the cost as more material may be needed, walls torn down, etc.

How Do I Pay For My Home? Generally, construction services are paid for in cash, including an initial deposit and then periodic payments as your home construction progresses. The schedule for payments will be determined between you and your builder. Payment is usually made by wire transfer. It is important to allocate funds ahead of time so construction of your home is not delayed.

How Long Will it Take to Build My Home? It normally takes between six and nine months to build your home. A number of factors could lengthen the time to build your home including the extent to which pre-work is necessary (such as lot preparation), the size of your home, weather, and the availability of the materials you select. After discussing your specifications with your builder, they will give you a more specific time estimate.

What If I Am Not Living In Costa Rica During The Construction of My Home? It is preferable to be in the country during the construction process in order to inspect the work on a regular basis. However, this is often not possible for many people. Therefore, your builder should provide frequent updates on the progress of your construction and send you photographs as certain milestones during construction are met (i.e., foundation is laid, roof is put on). If at all possible, it is helpful for you to visit at least a few times during the home construction process, particularly to pick out tiles, cabinets, appliances, and other fixtures.

We hope that this short guide gets you started toward realizing your dream of building a home in Costa Rica. We have years of experience finding land and creating communities. Please CONTACT US as you begin your search -- we will be happy to assist you!