ENJOY THE BEAUTIFUL BEACHES OF MEXICAN PACIFIC AT A VERY AFFORDABLE VALUE!!
Get to know Fer Yepez
Our target area is from Barra de Navidad, on through Melaque, Cuastecomate, La Manzanilla, Boca de Iguanas, Tenacatita, Chamela, Punta Perula, Morelos, Campo Costa and Cruz de Loreto as well as all areas in between. These areas are located within a 95 mile zone called the "Costalegre", a stretch of coastline with the most beautiful beaches and rainforests you will see in Mexico. Virtually untouched, these areas are ripe with real estate opportunities for locals and foreigners alike. If warm, breathtaking sunsets, deserted beaches, seclusion, serenity and old charm friendly Mexican towns are for you, this is the area to be. Coldwell Banker Tropicana can help you find that piece of investment property or vacation home/condo you are looking for.
Timing couldn't be better for investment here right now either. Much of what was Ejido land in this area is coming in to private ownership and as such, there are deals to be had. Property values are very reasonable at the moment, but are increasing rapidly, as this area develops at what is becoming a furious pace.
Whether it's a beachfront condo, luxury home, fixer-upper, development property or commercial site, Coldwell Banker Tropicana offers you the service, integrity, knowledge and honesty that you deserve and expect. We have bilingual agents available 7 days a week, who can explain to you, in an understandable fashion, how to purchase real estate here in Mexico.
Karen Morgan and Jeff Klassen, Owners/Brokers of Coldwell Banker Tropicana, personally extend our welcome to you. We have spent several years locating the right place for our own personal home and business and now that we have found it, we are living our dream. Why not come and join us?
In the 1917 United Mexican States Constitution, in their 27th article points out that ownership of the lands and waters within the boundaries of the national territory is vested originally in the Nation, which has had, and has, the right to transmit title thereof to private persons, thereby constituting private property.
The United Mexican States Constitution gave communal or public land to each Mexican town, this earth must be only for the employment or only possessed by Mexican nationalists, and it could not be sold of distance neither to the best bidder. This law was put indeed due to the problems raised with Spaniards, French and American, that controlled as much land as waterways in Mexico. In 1973, a well-known constitutional amendment as the Foreign Right of the Investment allowed foreigners to buy property everywhere of Mexico, except in the "restricted area" (32 miles from beach and 64 miles of any border frontier). The biggest problem that was raised with this amendment is that most of the foreigners wanted to buy expressly in the border and coastal areas.
In January of 1994 when the North America Free Trade Agreement (NAFTA) became effective an amendment to the article 27th of the Mexican United States Constitution, in which allow foreigners to possess properties in the "restricted area", depending on their location and their use, only through a "trust" (bank trust) or trusteeship, The "trust" or trusteeship was thought, among other things, as a way of protect foreigners interested in the possession of properties in Mexico; the reasoning is because when making the property transfer by means of a trusteeship, it is carried out an intense revision of the transaction to assure the legality and good intention of it. Also for a "trust", the bank checks the property, the insurance and the indebtedness of this, providing remote protection to the foreign owner.
In the past, some foreigners bought properties illegally and with retention rights unconsciously. In those days there was not any way of protecting them, there were not any confirmation form neither systems of justness.
With the new laws and the affluence of real estate professional agents now their transactions are safe and they are protected. Many people are attracted by cheap properties in front of the beach; but don't forget to remember that something that seems too good to be true is probably a swindle. Never buy a property in Mexico without a professional agent that is an AMPI member, another option it is to look for prestige international signatures that have representation offices in Mexico so that they help you in the all that a purchase or sale operation requires.
You should have in mind that your real estate agent, besides property search, there are some other tasks that he/ she will carry out to assure the legality of his transaction are:
1. Verify if the description in the seller's title is accurate, when compared to the land itself and the copy in the property registry.
2. Make sure there are not errors on the exact location of the property.
3. Verify the title chain. Make sure that at least during the 10 years preceding your date, all transfer documentation was drafted by legal counsel. It is important to consider the sacramental formalities of documents required in Mexican real estate matters. Title problems are the main cause of real estate litigation cases. All of this can be avoided by simply acquiring insurance. Luckily in Mexico, title insurance in now available in our country and it can give you peace of mind when completing your purchase.
4. Try to find out if all the requirements and empowerments were fullfield / verified during the current owner's (seller) transaction, especially if the owner is a corporate entity. Also weather that transfer was allowed or if the company's representative had the authority at this time. Otherwise, he/she title may be declared null any you would be wrapped in a legal problem.
5. Physically verify whether there are any cables or power lines, pipelines, sewage ducts, rights of way, apparent paths made by people, vehicle or cattle, steams of water (even dried up), possible landsides, toxic materials buried, or flora and fauna officially protected, within property.
6. Check if the parcel infringes areas prohibited or restricted by federal or state laws or regulations (like beach).
7. Find out if there are any pending taxes or other governmental dues that are or may can become liens, and that there are no registered encumbrances or servitudes upon the property.
8. Obtain all permits, appraisements, certificates, letters of feasibility and tax receipts of the different entities and official authorities. With these documents, your counsel will be able to represent you when dealing with the developer, agent, notary, seller, or, if the transaction includes "restricted zone", with the bank, the Ministry of Foreign Affairs and the Foreign Investment Registry.
9. Draft or review the contracts and the documents you are required to sign.
10. Make sure the notary public sends a notice to the recorder immediately after the purchase documents are executed and that he/she later your new title.
Why Coldwell Banker
When trusting your property to the Coldwell Banker® professionals you will be receiving the following benefits: World wide quality image. Specialized promotion in proven media. A specialized analysis to price properly your property. 100 years of successful experience in the real estate industry. Also Coldwell Banker® has a professional team that would work hard to help you in your real estate transaction, carrying out the following activities. Revise all your property documentation Give you some recommendations that will help you to get the best price. Send detailed information from your property to another real estate companies of the area, that which will allow us to manage a bigger number of possible clients and you will only be in contact with your Coldwell Banker® agent. Your property will be in Multiple Listing Service also in Coldwell Banker® one. To generate calls from possible customers we will place a yard sign in your property. Your property will be published in the most popular printed media (newspapers, magazines, etc) also in real estate ones. Monthly you will be informed through an "activity report" about the promotion activities carried out by our office to promote your property.
Calling Mexico Home
Business is booming at south of the border developments offering sun, sand and sea.
Three bedrooms, two baths, Mexican architecture, US amenities .. with a Mexican community to enjoy.
You have white sand beach, pool, gated security, good restaurants and you're 30 minutes from an international airport ... In California, you can't even find places like this, but if you could, it would be in the millions. Here it's under $500,000.
It's called "Mexico Dreaming", as a Forbes FYI magazine headline put it, and it's not exactly new. Lured by nice weather, proximity to the US and the lower cost of living, Americans have a long history of settling in ex-pat colonies such as Ajijic and San Miguel de Allenda. But now beach resorts are getting into the act, promising to dramatically change the scale of migration. The Wall Street Journal reports that in 2005, foreigners were involved in 80 percent of all real estate transactions in Mexico. The Mexican Association of Real Estate Professionals estimates that the number of Americans who own homes in Mexico will leap from 1.5 million to 12 million within 20 years.
What's fueling this growth? During the 1990's, the Mexican government amended property laws, making it easier for foreigners to own property in Mexico, including land near beaches, streamlined procedures for buying, plus the increased availability of title insurance, made purchase safer and boosted confidence in the market.
Just as important, US baby boomers, 78 million strong, are now heading into their 60's and thinking about retirement. Many boomers have paid off their first mortgage and can tap equity in their homes, or are coming into inheritance money, freeing up funds to invest in Mexico. They're smart, investment-oriented buyers. "We see people in their 40's and 50's who already know about the legalities and financing options," he says.
In Puerto Vallarta, the boom began in 2003 when real estate sales in the Multiple Listing Service increased from $36 million to $92 million. Last year, that figure probably zoomed past $500 million. Most of the development is occurring north of the airport. A significant share is in Punta Mita, an exclusive area on the northern point of Banderas Bay where a Four Seasons resort is now flanked by a gated community of luxury homes and condos running $580,000 to $7.5 million.
We are happy to be in Barra de Navidad, Melaque and Costalegre where the growth is just starting. Prices are still affordable, beaches are still pristine, and there are NO stoplights. We are filled with small and friendly Mexican communities.
The typical ex-pat home in Mexico is getting bigger - many top 3,000 square feet - and contains an amazing package of amenities: DSL, cable TV, garage for cars, security guard, infinity pool and more.
Baja's Los Cabos, a former sportfishing outpost that has evolved into a bustling community has deluxe hotels, golf courses and high price homes have taken up the 20-mile corridor between Cabo San Lucas and San Jose del Cabo, whereas Costalegre is just getting started. We have an "Old Baja" feel. There's not much land left in Cabo for foreign developers, so they're coming here.
"The longer we stayed, the more we liked it," is a typical comment from our visitors. There's lots of activities, lots of Mexican charm, lots of reasons to think Barra de Navidad and Melaque are real towns that won't grow too fast and get spoiled.
Many properties are sold without title insurance, as the notario in Mexico acts as a title company but does not provide title insurance. The title is searched so that clean title can be given to the new owner, prior to the closing of the property.
Many people are still concerned and want title insurance, and it is possible to obtain title insurance on titled properties (not on ejido properties). Your agent can provide you with the cost of title insurance based on the purchase price. In Mexico, it will take 6-8 weeks to obtain this insurance.
Working with multi-national corporations and second home buyers, Stewart Title Guadalajara delivers cutting edge title and real estate information services. Real estate transactions depend on accurate and transparent information. From title insurance to independent closing coordination services, Stewart Title Guadalajara helps buyers, sellers and lenders close real estate transactions with peace of mind.
Title InsuranceChain of title investigation Financial protection against certain title defects and/or title fraud Customized policy for Mexican market
Closing CoordinationTransaction management for real estate closing details Central point of contact for closing needs Coordination with Notary Public Facilitate escrow services v Third party security for deposits/documents v U.S. accounts available for deposits
Online File Management24/7 access to closing documents Protected by a user ID and password Centralizes documentation for all parties
Stewart Title Guadalajara, part of a network of Stewart title Latin America offices in Mexico, Central America and the Caribbean, provides customers with a suite of services that add transparency, security and peace of mind to real estate transactions. When investing in real estate, trust Stewart's financial strength, professional service and leading technology to make your transaction successful.
What is Ejido Property
In the 1800's the main financial promoters of independence in Mexico were a few wealthy families with large parcels of land or "Latifundios". The Mexican Revolution (Civil War of 1910-1919) was a direct result of the efforts of these families to retain their land ownership rights.
In 1920 the concept of the Ejido was adopted by Mexican President Alvaro Obregon, in the form of the "Ley de Ejidos" (Ejido Act). The government ceded land to local inhabitants, as a community, mostly of Indian origin, for use as farmland. This was initiated during a period when vast areas of Mexico were sparsely populated and there was no concept of individual land ownership. The new farming community, or "Ejido" could decide whether they wanted to hold all of the land public for the use of every member of the community as a collective; or it could decide whether they wanted to permanently distribute it individually to its members. In many cases, some land was apportioned, and some held as public. Today, ejidos still manage much of the collective ownership of land in Mexico. The collective elects administrators who function much as a mayor and his staff do in small towns in the U.S. In 1934, the Ejido act was made part of the constitution and has been amended many times over the preceding decades.
Prior to 1992 Ejido land was owned entirely by the Mexican government who eventually recognized problems with the whole concept as Ejido members illegally leased or sold their farmland. Those contracts created many legal problems for farmers and therefore in 1992 Mexican legislators approved the "Nueva Ley Agraria", the New Farm Act, designating individual Ejidos as legal entities. An Ejido (farming community) was then made able to represent itself by an elected board of members and given its own legal rights to its property.
The Ejido supreme authority is the General Assembly who approves Ejido Bylaws, accepts or authorizes new Ejido members, approves business contracts with third parties, authorizes termination of the Ejido regime, etc. The "Comisariado Ejidal" (Board of Directors elected by the General assembly) is in charge of the administration of the Ejido and also represents the Community in the judicial and fee-collecting matters.
There are 3 types of Ejido property; land for human settlement, common land and farmland. Human settlement property is the most important part of the Ejido community. It is the demographic concentration of homes, streets, parks, public services, etc and also includes schools, land for recreation, industry and cultural activities. This type of Ejido property of course is of the most interest to foreign investors. The individual Ejido general assembly, with the cooperation of municipal authorities define, locate, divide and record the land for human settlement. When an Ejido is formed, its members have the right to become an "Ejidatario" (Ejido Landowner) by acquiring for free, a "Solar", which is a lot within the Ejido land. The size of the solar is established by the Ejido General Assembly.
Much of the Mexican economy is now flourishing thanks to the regulation changes made to the Farm Act which allows for the sale of Ejido Rights and/or transformation from Ejido Land to private property. "La Nueva Ley Agraria", The New Farm Act (NLA) of 1992, established that the "ejidatarios" (Ejido landowners) can sell their land rights to other members or to other individuals already living in the Ejido community "avecindados", but they must be Mexicans. In other words, the Farm Act does not allow foreigners or even companies to acquire rights to Ejido property.
Ejidatarios can provide the use of their farmland to other people, or sell their Ejido rights to other members or "avecindados". These owners can sell, rent, lease, donate or dispose of their solares almost without any limitations. If a Mexican national purchases Ejido land, the transfer of property is recorded by the the Ejido, not by the government in Mexico City. A sales contract must be in writing and signed in front of 2 witness. A notice shall be sent to the National Farm Registry and the Ejido board of directors shall sign and register the transaction. The spouse and children of the Ejido member are entitled to a portion of the benefits, and if they are not legally notified of the sale, the sales contract could be annulled. The Ejido General Assembly, in order to avoid irregular occupation of the land shall define a settlement plan.
There are two ways to make Ejido land Private property, "Procede" and "Corett". Procede stands for "Programa de Certificación de Derechos Ejidales y Titulación de Solares" which basically translates to "the system of giving title to Ejidal property". Its purpose is to prevent irregular settlements in Ejido Land, by making it legal for the landowner (Ejidatario). In 1993, the government proposed a second plan called "Corett" (Comisión para la Regularización de la Tenecia de la Tierra), which is the Committee for the transformation of Ejido land to Private Property. The purpose of this plan is to regulate all the illegal settlements made before the new law. The basic duties of both plans are to: 1) regulate the ownership of the land in the Ejido town; 2) promote the incorporation of the regulated land in to its municipality; 3) issue public deed and ownership titles to each individual owner; 4) prepare the expropriation request of the Ejido and communal property, etc.
Buying Ejido Property
A foreigner can buy Ejido land, but the sale requires the agreement of the whole community that "own" it. The process for buying Ejido property as a non-Ejido member or foreigner can be time consuming and must be pursued with diligence, patience and expertise. Often the process can be accomplished in months, but sometimes it can take several years.
Until an Ejido has been transferred to private ownership, with title, there is no 100% safe way to buy Ejido property as a foreigner, although many do purchase this type of land. A foreigner needs to weigh the risks of potential problems on one side, with the significantly lower land prices on the other before deciding to purchase such property. In most cases, these types of land purchases happen without incident, but one has to understand that the potential is there. As in any type of land purchase transaction in Mexico, there will always be an element of trust involved. Like buying stocks, one should not risk investing their life's savings, investing only what they would be willing to lose in the event of issues. Also, like investment in stocks, many people have made millions of dollars by purchasing Ejido property for little money, then selling it for many times what they paid after it has gone through Procede, the transfership from Ejido to public title ownership.
Since Ejido land is much less expensive than regularized land, many foreigners have elected to take the risk and buy Ejido property, however, they do so recognizing that they have absolutely no rights, until they are able to legally obtain a fidecomiso (bank trust) of their own. A foreigner purchases Ejido property by placing the Ejido title to the land in the name of a trusted friend or relative who is Mexican, called a "Prestanombre" (translation: borrowed name), who then becomes a member of the Ejido, relying on the hope that when, or if, the land is regularized, ownership can be converted to a fideicomiso (bank trust) in their own name. Trust in their "prestanombre" is a must as that person ultimately has control over the property in the mean time and the foreign "owner" has no recourse whatsoever in the Mexican legal system.
In the past, foreigners have purchased beachfront property from fishermen for peanuts, erected houses for little more, and then find that the fisherman's long-lost cousin surfaces many years later to claim that the land is his because it initially belonged to a common grandfather. In cases such as these, which have gone all the way to the Mexican Supreme Court, foreigners have been thrown off their land and treated as squatters. This happened in Ensenada several years ago on beachfront property that had come to be worth hundreds of thousands of U.S. dollars. Those Americans were not swindled, however. They knew they were not allowed to own that land; but they hoped that possession would be 99/10ths of the law. They took a risk and paid the price.
Once an offer has been made to an Ejido landowner (Ejiditario) the spouse and or heirs of the ejiditario will have the first right of refusal to purchase at the offering price. The second right of refusal is held by the Ejido membership as a community. They must approve the sale by a 75% majority vote in their regularly held meetings (Asambleas). If they vote to accept the sale, the written offer is posted for 30 days in the Ejido office. During these 30 days, any Ejido member can exercise their right of purchasing the property at the proposed price, having the third right of refusal. If none of these rights of refusal result in a sale, anyone can purchase the land from the Ejiditario.
A foreign purchaser of Ejido property will receive two certified copies of the recession of rights to the Prestanombre, which will have been notarized and signed by the Ejido President, Treasurer and two witnesses. It is further recommended that the purchaser have a legal document made up through a Notario between themselves and their Prestanombre, who will agree to give the purchaser recession of his rights, the moment the Ejido title completes Procede and becomes title able. This will further strengthen the bond between the buyer and Prestanombre and lesson the amount of risk involved in the sale.
This is a general and informative background as to how the Ejido came about, what it is, how it is organized and how to purchase this type of land. Our purpose is to give all people who have an interest in Ejido Land a wider understanding of this unique, important and complex real estate regime.
Why Do I Need An Agent
In the United States almost all real estate transactions involve real estate companies. Many people in Mexico however, particularly in smaller towns, involved in real estate transactions are reluctant to use a real estate company. Perhaps they have had a bad experience with a real estate company in the past; feel that their property will "sell itself"; or feel that the commission fees are too high. In most cases, these misgivings come about because of a lack of understanding of the importance of using a legitimate and experienced real estate company, and their trained agents. Sellers who have established a relationship with a good, qualified company and agent understand their value and importance and always go back to them for their future real estate transactions. This pamphlet is being offered to you, the seller, in order to inform you how an experienced real estate company works and what it can do for you.
There are 3 methods of selling your house or property ... selling without a real estate company, selling with a small independent real estate company and selling with a large international based real estate company.
Selling Without a Real Estate Company
The only advantage to the seller of this type is that they pay no commission fees. In every other way this kind of seller is hindered in selling their home or property. This is particularly the case if the seller has a home or property which would cater to a tourist or foreign buyer. Without the use of a real estate agent the seller has to rely totally on the chance that a potential buyer happens to pass buy their real state for sale. Furthermore, if a seller does happen to locate a buyer, is that seller capable of answering all the buyer's questions ... what are the zoning laws in this neighborhood? Can I build condos on this lot? Who can I get to renovate this house? What is the process for a foreigner buying property in Mexico? What is the difference between buying Ejido land and private property? How much are my closing costs going to be? Can you explain to me the different types of financing? A qualified real estate agent can answer these questions and help to ease the concerns of any buyer.
The biggest disadvantage to a seller of this type though is that other than having a home-made "for sale" sign in the yard, the seller has no means of promoting or advertising their home or property and usually it will take much longer to sell, sometimes years longer. Also, a seller, who is not in the real estate business, can only guess as to what their home or property is worth. Generally, most people believe that their property is special and as such is worth more than it really is. The seller sets his price based on personal bias, which is not an objective way to determine a sales price. On the other hand, it is not uncommon to find a seller who under-values their home or property value and settles on a price below current market value. If the seller really wants to sell their home or property in a timely manner, they really need to have a real estate professional determine what the value is, in an unbiased fashion.
In order for a seller to realize the goal of a successful sale, he must first realize that his home or property is only worth what someone will pay for it.
In actuality, most buyers, certainly foreign ones, won't even consider buying homes or properties "For Sale By Owner", as this type of seller portray themselves as not only being stingy or cheap, but also as someone who thinks they know everything about real estate, when they likely do not. Most buyers will not have any confidence in this type of seller. In all likelihood, after a lengthy period of time, the seller will sell their home or property through a real estate agent anyway as in almost all cases buyers will insist on using a qualified real estate agent to help them through the offer and sale process, in order to protect their interests in a home or property purchase.
Selling With a Small Independent Real Estate Company
Unfortunately, for most Mexican people, particularly in smaller towns, their first and sometimes only contact with a real estate person is through a small independent real estate company or agency. In most cases these "agencies" consist of nothing more than a single person, perhaps 2 people, working out of a small office, their home or even their car and in some instances they may not even have a business license of any kind.
Usually, the only objective of the small time independent agency is to make themselves as much money as possible, with very little regard for their clients. They have little money invested in their business, no agents or staff to speak of and since they do not have an affiliation with an international franchise, such as Coldwell Banker, they do not have to abide by the same high standards and codes of ethics used by them. Sellers in our smaller Mexican communities, having used these independent companies, have no doubt experienced for themselves, or heard the stories of renting their homes unknowingly, or worse yet, selling their home or property for more than what the seller has asked for, only to keep the extra money for themselves. These kinds of practices cannot be practiced by a real estate company affiliated with an international firm, such as Coldwell Banker. Each office is independently owned with a large financial investment by the owner. To participate in unethical business practice means the risk of losing their franchise rights.
Furthermore, anybody with $150 pesos and access to a computer can have a website and by simply saying that they will advertise your home or property on their local website means very little, if nobody finds their website! The internet is a complex medium of marketing and one needs to understand it well to make it work for them. Websites need to link up with similar ones and have lots of traffic to them, in order to place well in the search engines. This high placement in the search engines can cost thousands of dollars, which small independent agencies cannot and do not invest in. Coldwellbanker.com is an international website and has the most activity of any real estate website in the world. If a seller's home or property is advertised on Coldwellbanker.com it will be seen, and by buyers specifically looking for something in the seller's area.
Here is something else to think about, regarding a one person real estate company. If the same person who is listing a seller's home or property is also the agent for the buyer, who is that agency working for? The buyer or the seller? On one hand, it is their obligation to get you the best price for the seller, on the other hand it is their obligation to get the buyer the best price. It's like having the same attorney in a lawsuit. It is a conflict of interest.
Unfortunately, due to things mentioned above, many Mexican property and home owners have their doubts about working with any real estate company.
Selling With an International-based Company (Coldwell Banker)
With over 4000 franchise offices (45 in Mexico) and over 100 years of experience in real estate services Coldwell Banker is the most well known and respected real estate company in the world. As such Coldwell Banker can give the home or property seller the highest probability of selling, in the shortest amount of time.
Coldwell Banker Tropicana, in Melaque, Jalisco provides the following services to their sellers:
- International and national advertising on the following websites: coldwellbanker.com, coldwellbanker.com.mx, realtor.com, coldwellbankertropicana.com, coldwellbankertropicana.com.mx, googlerealestate.com, msn.com, point2agent.com as well as local broker websites.
- Unlike most of the real estate companies here in our area, Coldwell Banker Tropicana will work with any legitimate, reputable and licensed real estate company. We certainly show homes and properties, listed by other companies, to our buyers and furthermore, encourage other real estate companies to sell homes and properties listed with us. Therefore, if a seller's worry is that no one else can sell their property, just because it's listed with us ... absolutely they can! In fact, when we take on a new listing, we have a "Broker's Open", which means that we schedule an "open house", where we invite other agents to come and see the home or property. We also distribute flyers to their offices, to make them aware of our "new listing".
- A professional flyer will be created on the seller's home or property upon listing with us and will be distributed outside our office in one of the office wall-mounted display cases; our portable display cart, located in front of Intercam in Melaque; each of the reputable real estate offices; our own in-office "Home & Lots for Sale" binders; shared with walk-in customers and available to print on line, through our websites.
- We take all of our agents on tour, each Monday morning, visiting our new listings. That way, each of our agents are aware of all of our listings and are familiar with each one.
- During high season we will schedule at least one "open house" for potential buyers.
- We also have a 12 passenger custom air-conditioned mini bus, which we use in high season for "real estate tours" available to the public, in which we drive them around, looking at our available homes and properties for sale.
The services provided by Coldwell Banker Tropicana, including all internet exposure, is only available for clients signing listing agreements with us. Obviously, without a listing agreement there is no incentive to invest money and time in to selling a home or property. The commission rates are as follows:
Homes to $200'000 usd - 6%
Homes above $200'000 usd - 5%
Vacant Property to $100'000 - 10%
Vacant Property over $100'000 - 8%
If you have any questions or comments, before making your decision, we would love the chance to discuss them. Please drop in to our office and meet with one of our agents, or give us a call at 315-355-9083
The Buying Process
Find a property
Whether you are looking for a home, a condo, or land, the first step is getting acquainted with what is available, and the prices. Since Coldwell Banker has come into our area, we have been accused of "raising the prices" in our area. This is actually not the case, as very seldom are we asked "what price should we ask?". It is much more common for a seller to tell us what he wants for the property he is going to sell. He has gained his information from neighbors and friends who have watched the real estate market in their town. Most of the sellers in our area are very savvy and watch the prices of properties on the rise - and of course, want to get the most out of their real estate. We will show you the properties for sale, not only of our company, but other companies as well.
Agent Showing - You may come by one of our offices and make an appointment to view homes. All of our agents are aware of available properties in our area and can make the appropriate appointments to view the homes. If it is property you are interested in, many times we are able to show vacant land, on your first trip into our office. We have an agent on duty at all times who can share information and show you properties.
Real Estate Tours - Another option, is to take our real estate tour bus. Our 12 passenger air/conditioned bus leaves every day (during the high season) from our Barra or Melaque office at 11:00am. The cost is $100 pesos per person, which will be refunded should you purchase a property. We won't be getting out of the bus during this tour, but looking at properties that are for sale, as we pass down the streets. You will have a chance to make appointments to see the inside of any home you are interested in, once we get back to the office. You should plan on 2-3 hours to take this tour.
Make an Offer
Making an offer on a property is very similar to the process in the US or Canada. Most times, what a seller in Mexico is asking for his property, is what he WANTS for his property. In the States/Canada we never go into a store and negotiate a price for an item, but of course, that is what we do when in Mexico - bartering is very common. As we are accustomed to in the US/Canada, when we purchase property, we very seldom offer the asking price right from the start. But in Mexico, they are used to getting their asking price! We encourage offers and negotiate throughout the buying process, but you will want to make your offer a decent one, so you don't offend the seller. We present any and all offers to the seller, and explain to them the details of the offer. We encourage a counter-offer, if that is necessary to keep the seller negotiating. Of course a transaction doesn't get to the next stage, unless both parties agree and sign.
Be aware, that there are many times that the owner will not accept anything other than the asking price, and we will be up front with you, should we know the owners wishes.
Again, just like the process we are familiar with, a deposit or down payment is required in most cases. On the contract, we also have a paragraph about this deposit, that agrees on the amount the buyer is willing to lose, should he decide not to continue with the contract, after it is signed by both parties. The seller also agrees to this amount, and will be obligated to pay the buyer that amount, should the seller decide not to continue with the contract. Therefore, this is usually a large amount 10%-20% of the purchase price.
In most cases, the deposit is given directly to the owner, unless you purchase title insurance or choose to involve a title company (and pay their fees) who will then hold your money in escrow. But in our area, the sellers aren't experienced with escrow, and want the deposit as this is the sign that you are going to complete the transaction. If you don't, then the buyer keeps the deposit. Because of this, you should be sure that this is the property you want.
Financing In Mexico
More today than ever before buyers can take advantage of affordable and accessible home financing programs. Buyers can choose between several respected and well established companies and use Mexican property as collateral. As the competition among lenders increases, the terms for borrowers are improving.
Buyers may qualify based on their credit and documents from the US. The property they buy is held in a fideicomiso bank trust. The lending institution uses the escrow services of a well known company like Stewart Title or First American Title. If this sounds familiar, it is because these processes are modeled from those followed in the US.
Loan representatives offer fixed rate loans, adjustable rate loans, terms up to 25 years, loans as high as 80% of the value of the property, refinancing and even programs to allow borrowers to take cash out of existing properties.
The growing popularity of financing makes second and retirement homes in Mexico more accessible to buyers coming from the US. The anticipated increase in demand is expected to have an upward pressure on prices. These evolutions in the market place bring good opportunities for buyers and sellers alike.
Residential Loan Application