Why a Costa Rica Home Inspection Is Non-Negotiable
In North America, getting a home inspection before you buy is routine. In Costa Rica, it’s almost unheard of in the local market — and that gap is exactly where buyers get burned. In Episode 299, host Richard Bexon sits down with home inspector Alex Streit to explain why a thorough Costa Rica home inspection is one of the most important steps in your due diligence, what to look out for, and the questions every buyer should ask before signing anything.
Richard Bexon:
I think getting a home inspection is vital here in Costa Rica on every single property. You don’t need it on land — that’s why you’ve got topographers and soil studies. But on a building, very thorough due diligence is required, especially a home inspection.
Alex Streit:
Yeah, I know I sound a little biased as a home inspector, but I agree with that.
What the 2026 Market Slowdown Really Looks Like
Richard Bexon:
2026 so far has been very volatile. 2025 was too. Volatility is the new normal, even though the stock markets aren’t really reflecting that. What are you seeing happening on the ground here in Costa Rica, Alex?
Alex Streit:
We actually started 2026 off really strong. For the first quarter, we did really good numbers. And then in the last two or three months, it’s just been a lot slower. With the outside factors — like the Strait of Hormuz being closed and driving gas and fuel prices up for both planes and diesel — maybe that’s stopping a little bit of tourism. The dollar continues to decline here in Costa Rica. I don’t know if these are contributing factors, but we’re certainly feeling a slowdown.
Richard Bexon:
In the real estate industry, definitely things are a little quieter, and you’re seeing that reflected in pricing. But tourism numbers keep increasing — Q1 was like 13 percent up. Real estate numbers are sometimes reflected in tourism: those tourists come, and then usually they’re buying real estate, and you sometimes don’t see that till the year after. 2025 was a bit of a flat year, so we might see some of that in 2026, and potentially 2027 could be a good year.
Alex Streit:
It’s all cyclical. We’ll keep our fingers crossed that the end of 2026 and 2027 bring fruit from all the tourists that are coming.
Richard Bexon:
I always say to people, just keep going. Put one foot in front of the other. When things get tough, that’s great — because most of the time people give up when they’re right there at the top of the mountain. They just can’t see it.
How to Find a Good Home Inspector in Costa Rica
Richard Bexon:
You’ve been a home inspector in the U.S., which is a licensed world. Here in Costa Rica, it’s not licensed. So how do you find a good home inspector in Costa Rica? And are they all equal?
Alex Streit:
They’re definitely not all equal. The best way to do it is to do your own due diligence. While you may trust a realtor or advisor with great referrals, you always need to follow up with the inspector themselves. Ask for sample reports. Ask about their experience. If they have Google reviews, look at those — or at least ask for references.
Here in Costa Rica, with the humidity, rains, seismic activity, and corrosive salt water, you have to find somebody with the appropriate tools and technology. Someone who can use thermal imaging to find roof leaks or overheating in an electrical panel. Someone who can verify with moisture meters. Someone who can use a drone for a roof that isn’t accessible or is tiled in clay. Someone who can do a septic scope. As a buyer, you need as much information as possible to make an informed decision.
Richard Bexon:
I remember a saying from law school that has stuck with me forever: caveat emptor — buyer beware. Here in Costa Rica it really is buyer beware of everything, because there’s no recourse. It’s a very unregulated market, but there’s beauty in that too. You just need to trust, but verify everything.
Sometimes home inspectors feel pressure to be on the realtor’s side. If you’re too harsh and the deal doesn’t get done, the realtor might not refer you again. It’s a weird place to be.
Alex Streit:
It’s a hard balance. Ultimately the client hires us and pays us — that’s who we’re looking out for. But you can be an alarmist. A lot of electrical issues are scary because electricity is involved, but generally they’re an easy, inexpensive fix. The way you present it to the buyer makes all the difference. If you scare them and they don’t understand it’s normal and easy to fix, they’ll want to walk away. And realtors only get paid when the deal closes, so if you cost them deals, they want nothing to do with you. But there truly are real issues, and depending on the client’s budget, you have to make them aware.
Scary Problems That Are Surprisingly Cheap to Fix
Richard Bexon:
What looks scary but is actually easy and inexpensive to fix? One you mentioned was electrical.
Alex Streit:
Electrical is something you don’t want to play around with — fires, electrocution. But if we have an undersized wire to a breaker, double taps, or overheating, those are easily addressed by a knowledgeable, qualified electrician. Anyone can call themselves an electrician here, so we say go with a qualified electrical engineer. It’s worth the extra money to make sure it’s safe. Unless it’s actively overheating and sparking — an immediate safety concern — it can be made safe, and it’s usually not that expensive even if it looks scary.
Richard Bexon:
What about cracks in the walls — small cracks and that kind of thing?
Alex Streit:
Those always look scary, especially in a bad photo. But here a lot of cracks are cosmetic. It’s a concrete block with render or stucco on it, and that finish coat cracks — usually not an issue. The real problem is when there’s cracking through the blocks and actual displacement showing the structure has shifted. Costa Rica does a really good job of building and is strict on seismic codes. But we’ll always have minor cracks, and most of them aren’t structural.
Cracks, Climate, and the Limits of an Inspection
Richard Bexon:
What are the limitations people should understand when they get a home inspection in Costa Rica?
Alex Streit:
A home inspector always has limitations. We can’t see behind walls. We don’t move furniture or personal belongings. Our tools and technology give the best possible picture, but we can’t see what’s hidden behind a wall. A plumbing leak will generally present itself with thermal and moisture tools — but if you hire someone without them, they may miss it. We’re also not the tradespeople; we’re not licensed electricians, plumbers, or roofers. We’re trained to point out issues, then recommend you contact a specialist for repair details.
Richard Bexon:
You mentioned the tropical climate — it rains, it’s hot, it’s cold, and there’s the sea. How does it impact homes differently than in North America?
Alex Streit:
Living on the coast is different than living in a city. On the coast, you battle corrosive saltwater air, so it takes more maintenance every year — sealing around doors, windows, and proper priming and sealing before painting, plus anti-mold products, because mold comes easily here. In the city there’s less salt, so less corrosion, but you still get shifting and settling from seismic activity. Honestly, a lot of it is deferred maintenance. Most homeowners aren’t aware of what it takes to maintain a home, so by the time someone else is buying and we inspect, the problems look much worse.
The Biggest Red Flags to Walk Away From
Richard Bexon:
What are the biggest red flags that should make a buyer walk away?
Alex Streit:
Anything can be fixed, so the real red flags are behavioral. For me, it’s trouble getting due diligence documents — when the seller, realtor, or attorney isn’t providing the information you request, or it’s taking too long. Not wanting to allow a home inspection is an issue. And if an advisor says, “Only use this person, they’ll give you the best rate,” that’s a red flag — it tells me they have a vested interest.
It’s nothing necessarily with the findings of the house, because anything can be fixed — unless you have widespread termite damage in a wood structure. Electrical and plumbing can be fixed; it just depends on how widespread it is and your budget.
Septic Scopes and Why New Builds Still Need an Inspection
Richard Bexon:
You recently got a septic camera. How do you inspect a septic system here?
Alex Streit:
Generally there’s a cleanout — an access point where you screw off the top and run the camera down. If that’s not available, we ask the seller to have a contractor pull the toilet so we can run the camera through. Our camera takes video and photos of any issues — misaligned pipes that catch debris, low spots or bellies where the line sags and holds water, and root intrusion or breaks. Everything here is generally PVC, so a root in the pipe means there’s a break or an unsealed joint, which causes a lot of issues. Nobody thinks about their septic line — out of sight, out of mind — until there’s a backup.
Richard Bexon:
And that’s a messy fix.
Alex Streit:
It is. Our camera has a sonde location device. It sends a transmission from the camera head, so when we find a break, we can pinpoint a narrowed-down area of exactly where it is. Instead of digging up the whole line or hunting for original plans — which may not even match what was installed — we locate it easily for the client.
Richard Bexon:
Should people have a brand-new home inspected? It usually comes with a one-year guarantee, and the structure with a five-year guarantee.
Alex Streit:
Absolutely — new builds should always be inspected. We catch so many issues. Costa Rica adopted the U.S. National Electric Code, I think around 2011, so anything built after that should be done to U.S. standards. Big condo high-rises are usually well built, but even luxury homes in Guanacaste or on the coast often have installations done improperly. It’s good to catch it before the warranty is up, even before closing, so it can be corrected. We once ran a sewer scope on a new build and found they’d poured concrete in the line — it was never going to reach the septic tank. Construction debris ends up in there all the time.
Richard Bexon:
A brand-new home hasn’t been time-tested. You buy it, put it on the rental market, clients come in, you have issues, and you start getting bad reviews. From a business point of view, that costs you rentability. Once you take a bad step here as a vacation rental, it’s very difficult to come back from.
Alex Streit:
Absolutely. If you’re doing it as an investment home and an Airbnb or any rental platform, it’s even more important, because your business relies on those reviews.
What a Costa Rica Home Inspection Costs
Richard Bexon:
How much does a home inspection cost, Alex?
Alex Streit:
For small apartments or condo units we start at $500. For detached single-family homes up to 1,500 square feet, we’re priced right now at $675. Sometimes people say that’s too expensive.
Richard Bexon:
I don’t think that’s expensive at all.
Alex Streit:
Reputable inspection companies using the right technology and expertise are all in that range. Cheaper is not better. You either pay up front or pay a lot more later. Some agents say, “We’ve got a guy who’ll do it for $300 or $400,” and their report is a WhatsApp message with three pictures and three items. Most home inspectors don’t even pull off the electrical panel cover to see the wires. They plug in an outlet tester and say it’s good — but without looking at the wiring, you have no idea.
Final Advice: Trust, But Verify
Richard Bexon:
I go back to caveat emptor — buyer beware. Check everything. Trust, but verify. You can trust your realtor, but use a third party on a lot of stuff. We’ve had clients say, “Rich, can you take a look at this for me?” I had a developer recently who told some landowners his infrastructure cost would be $2.5 million, so they’d go 50-50 on lot sales — but his real infrastructure cost was $800,000 at best. People just didn’t know any better. Costa Rica is a beautiful place; you just need to be careful.
Alex Streit:
Not every realtor gives bad advice — we’ve spoken to some great ones. But you have to verify. You’ll get a quote that’s so low it’s intriguing, and then suddenly you’re four times that amount into it.
Richard Bexon:
Last question, Alex. If you inherited $500,000 and had to invest it in a business or real estate in Costa Rica, what would you choose and why?
Alex Streit:
That’s tough. Last time I said a trade school, because we run into so many electrical and plumbing issues. But one thing we’ve noticed is that a lot of Ticos don’t know what a home inspection is. They confuse us with the peritos, who come more from the banks to give an appraisal, or they assume you have to be an engineer. We’re not providing engineering advice — we’re telling you how systems are functioning and installed, and recommending an engineer if we find issues. So maybe a campaign to educate Ticos on what a home inspection is and why it matters. I wouldn’t need $500,000 for that, but it would be a start.
Richard Bexon:
It’s just not in the culture here yet. Usually it’s the peritos — engineers doing inspections — which I sometimes think is overkill, because they look at it from a technical point of view rather than daily functionality and usability.
Alex Streit:
Exactly. When you bring an engineer in, they’re not looking at all the systems — usually just the structure. As a general home inspector, we look at everything from the roof to the foundation, then recommend an engineer when we find an issue. But for a general home purchase, an engineer isn’t necessary unless you’re building.
Richard Bexon:
Alex, I really appreciate you coming on the podcast and sharing your experience. Anyone who wants to get in contact with Alex — I’ll put all his contact details in the description below. Thanks for taking the time.
Alex Streit:
Thank you, man. Always a pleasure.
Richard Bexon:
We look forward to helping anyone who sees the podcast.
If you’re looking to relocate, invest, build, or need buyer’s representation here in Costa Rica, you can reach the team at info@investingcostarica.com.
