In my experience, here in Los Cabos there are two very different points of view, the one of the beloved buyer (bb) and the one of the buyer’s agent. This is a subject that is rarely discussed between the two unless the bb asks the right questions. Most agents will not bring it up because it can sometimes lead to another distraction that may cause confusion. The reality is our local transactions, markets, properties and foreign clients are completely different, we will examine each individually.
The Mexican property transaction is different than your home town USA or Canadian transaction because: it generally takes longer here due to when foreigners buy property here a bank trust (fideicomiso) is generally required. I assume you understand what a fideicomiso is by now, if you do not please contact me for details. Closing times are normally 45-90 days from the time the earnest funds become hard in escrow, especially these days with the volume of closing and sales we have been having and are currently experiencing. Actual date of closing/signing can also be a moving target, exercise patience with your agent and closing company because there are many factors involved, not always in control of any one specific party.
Our market is different because: supply & demand created by geographic location, diverseness of available properties and the wow factor. Most buyers here don’t actually become owners until after their 2nd + trip to Los Cabos. The savvy buyer will have done a lot of research on-line, has already found and agent, has seen many property links from that agent and has a planned schedule to see specific properties upon their next visit. Many sellers here (as anywhere else on the planet) have inflated opinions of the value of their property and they may or may not listen to the advice of their listing agent (but that is another story for another day). Consequently properties remain for sale here longer than what you may be used to, because this most likely is a seller’s 2nd home and they might not necessarily need to sell now or this month or year. The other consideration is that an agent here generally spends more time with a client showing more options, sometimes over the course of a year or until they are ready to buy that perfect property. At the end of the day we work harder for you and because of that our local commissions charged to sellers is 6%-10% on average depending on circumstances.
Our properties available are different because: most people come here for vacation and or relax with friends or family, part time non income generating living or just to escape their weather at home. So this means that custom builders and or private owner/builders may include more frivolous or extras into a property than perhaps if it was your primary residence. However, there are some extravagant primary residences here and there is an ever growing number of full time professionals like myself living here. We have a real mixture of properties with vacation rentals mixed in with full time residents in some developments, be sure to ask you agent about HOA rules when looking.
Most of our clients are different because: they are from all over the world, have different desires and plans for their new property and may not understand the culture enough to appreciate it. Yes Los Cabos is becoming more of a conglomeration of people than ever these days. Every buyer has different expectations in terms of property values as there is so much variety, some next door to each other. It can be a real process to explain to a potential buyer the many differences between the developments, construction qualities, what is going to happen on that big empty lot next door and so on. Some developments are better for long term rentals as where some are not, and then you have the buyer looking for the vacation rental property. It really requires a vast knowledge of the area to effectively answer a buyer’s question be it on-line or in person.
Another difference here is that, well this is a different country from the US of A or Canada and therefore we have a very different culture. Mexico is a beautiful country with beautiful nice people for those who embrace it. Keep in mind when shopping for and buying property in Los Cabos: you’re not in Kansas anymore.
Terry Gray Curtis is a veteran Century 21 Paradise Properties agent and Property Manager, he operates www.caboresortproperties.com & www.cabosecrets.com & a blog at http://blog.caboresortproperties.com Drop him a note to receive his very informative, bi-weekly Newsletter. His e-marketing program can give you incredible exposure if you are a Seller. Terry can be reached @ firstname.lastname@example.org or USA Tel 310.272.9500 Mex Cel (011-521) 624.151.5530