Medellin Property Guide
Medellin is experiencing a building boom of residential property construction. Hundreds of high-rise Condominium and housing projects are under construction or in the proposal stage. There is no doubt that this is the time to buy with property values appreciating. Follow the guide below to learn more about property in Medellin.
Buying: As an American or Foreigner Citizen you can purchase property in Colombia.
Consider what happened in Costa Rica and Panama years ago. Residential home values appreciated at double digit rates and many individuals missed out on this housing boom.
Price: New Condominiums and residential homes are selling for approximately $110-$120 per square foot for the best properties in the Medellin area. You will find lower prices in the areas bordering El Poblado and your purchase price will depend on your skills to negotiate and upgrades to the property. Remember, MLS type listing and actual selling prices are kept secret in Colombia. You will not know the selling price of other properties unless you know the person who bought or sold it. The best way to find this information is through your realtor. As in the USA, list prices are negotiable and many individuals have received a good discount from the listed price.
Closing Procedures: Property closings are conducted at a Notary of your choosing. The Notary will ensure the property is free from any back taxes or outstanding debts and verify the registered owner is the seller. Your purchase contract will be in Spanish and formally recorded at the Notary. Your attorney will review the contract, in detail, with you and provide a copy in English.
Financing: Most properties purchased by Americans are cash transactions. This is normally completed by a wire transfer for the entire purchase price to the sellers bank account. There is some financing available to Foreigners and offered at high interest rates. As Medellin's real estate market expands you should see more financing opportunities for foreigners.
Title Insurance: Colombia has yet to offer title insurance but rest assured properties have been bought and sold for years without title issues.
Realtor Fees: Realtor fees are normally 3% of the purchase price and can be charged to the seller or the buyer depending on who the realtor is working for. Make sure you understand who's responsible to pay this fee before you make an offer.
Important: Find and use a Colombian Real Estate Firm. Aviod non-locals trying to sell real estate.