Chile Forum

Most first time purchasers in Chile take between 1.5 and 3 years to buy when done right. That is to say it will take you that long to fall into and out of a few land deals until you understand what it is that makes a good sane deal. There are exceptions to this and it usually means a great amount of risk. Note, I am not talking about a simple house on a simple lot in a simple spot...that is much less comprehensive and therefore much less work. Do not be unaware that you can have the same problems on a small purchase as a large one so better to hear the worst than to go forward un-knowingly and find yourself up to your neck.

Remember to say the least possible to everyone you are involved with. Everything gets around and if you fall out of a deal, all the details will follow you around...accent on the ugly...so be...conservative in everything...anything "positive" you say like "..what a nice barn..." will communicated to the seller via real estate agent, caretaker, ranch hand, nieghbor...local children etc as...".....I will pay whatever it takes for this property because I love the barn...in fact I am going to convert the barn to a house and give birth to my children there..."...make up whatever you want here as that is what it will come out too....and so this will cause issues and furthur escalate anyhting going on with the purchase. Remember at all times that there are other properties and it is not the last one to be sold.

I remember going to look at a property on the edge of a large river...it was about 25 hectars with a house and barn plus pumphouse etc...The connection told me about it and said it was 4 mill a hectar...on the way out in his car I asked him to call to make sure of a few things and he confirmed at that moment via phone with the owner that the price was 4.2 mill....we arrived I reconfirmed the price at 4.2 and wrote it down....we walked the property and I complimented the woman on her work with everything and she comments that yes the price was 4.4...I didn't say anything...at he end the price was 4.5 and nothing less....so i casually brought up the idea that it had started the day before at 4 mill and then 4.2 and then 4.4 and now 4.5 a hectar...so what do you do?...you turn and walk away and never go back....if you make a scene, it doesn't matter, you won't win and they are not going to reduce the price unless its through extensieve third party negotiations.....

Generaly properties are put out to sale with several parties...real estate agents for town, taxi drivers are a good source as they are very social and a good way to get it out and generaly a local in the area that is to some extent a mover shaker,,,generaly ther is most likely a mover shaker type for every 15 or so square kms in the country and maybe one for every 5 to 10 blocks in town that is in the know.

Traditionaly the seller will pay up to 2% of the total selling price. this amount is paid at the time of the signing of the purchase agreement. If you use or hire a real estate agent or a "fixer" he will charge 2% of the purchase price as well. It is paid at the signing of the purchase agreement. There can be exclusions to this but that is special and we will get into later. Make sure that you discuss the percentage or at least have whatever the agreement is handled before you get to close to the final deal.