Priorities for buying real estate in Mexico
There are many things to consider when buying a home or property in Mexico. It is an exciting time to be an owner in Mexico right now. There are many parts of Mexico that are breathtaking and worth the while to plant some roots. It is not only important to find the right real estate company to work with but, you should also keep the following three priorities in mind for buying real estate in Mexico.
Comparative market analysis
First, insist on a comparative market analysis of the properties sold and the current competitive listings for any property you are considering buying. Historically in Mexico, there has been a precedent of not recording true sales prices. You, as a buyer, have the right to information before you spend your money. Mexico does not require education or fiduciary standards for persons selling real estate. At the moment, anyone, national or foreigner, can write a sales contract for you to sign and receive a commission, whether their work is correct or not. Be careful who you deal with.
Information on what has sold, when it sold and whether or not there was financing by the seller or a third-party mortgage lender, is important. Traditionally, seller financing commands a higher sales price. Insist on comparisons of what features the sold properties have that are similar or dissimilar to the property you are considering buying.
Ask how much inventory is in the area where you are looking and what the price ranges are for similar properties. Some agents may not show you other available properties on the market for sale but their own. If you ask for the comparative market analysis and a list of what is available in the areas you like, you should ask which belong to the agency you are using and which do not.
Insist upon the purchase funds being put into an escrow account. There is no reason for you to use your broker’s account or to use a notary or any private individual. Don’t be talked into the idea that the cost of an escrow account in too expensive or a waste of money. Reputable escrow companies provide a badly needs service at reasonable fees.
In the situation of new construction projects, some builders use a master trust and your funds are put into the bank trust. In all cases, know where the money you are paying is being sent and what your rights are in case of seller default.
Unless you are a Mexican national and understand this country’s real estate laws and taxes, do not proceed with any purchase until you obtain local professional advice. There are knowledgeable real estate agents, attorneys, and accountants available in every major expat center. If anyone tries to sell you something or act as your agents try to talk you out of professional advice, consider it a major red flag.
For the best real estate and property management advice, contact the experts at Merida Property Management. We have highly qualified agents who can help you find that dream home in Merida, Mexico.