Many people dream of buying a property in Los Cabos. Whether to vacation, invest, or retire, it’s easy to see why this idyllic destination draws prospective buyers from around the world. Once hooked on Cabo’s fantastic beaches, even better weather, and so much natural beauty, owning a piece of Los Cabos paradise becomes a dream many chase. This home buyers guide will provide you with all the information you need to know about the buying process in Mexico.
- Property Ownership
“US residents are able to easily purchase land and real estate in Mexico.”
One common question that US residents have about the home buying process is whether they are able to own property in Mexico. The simple answer to this is that US residents are able to easily purchase land and real estate in Mexico. This is done through a trust which lasts for 50 years and can easily be renewed in perpetuity. It is known as a “fideicomiso” and it is arranged directly through a Mexican trustee bank.
- Being Clear with Your Budget and Requirements
“Establishing a budget will give you a clear idea as to the type of Los Cabos real estate you will be best suited to.”
The first step of the home buying process will be to set a realistic budget and determine by what means that target may be achieved. Although historically a cash market, some third-party lenders offer competitive rates and many developers will offer seller financing. Mexican banks will also offer mortgages to residents and VTB mortgages are also common. Establishing a budget will give you a clear idea as to the type of Los Cabos real estate you will be best suited to. Making a list of amenities you also want in your home community will make the search more efficient, and ultimately help get the best value for your spend. Additionally, consider your objectives with the Los Cabos property. Will it be a property for residence, a holiday home, an income property, a long-term investment, or a combination of things?
- Finding the Right Real Estate Agent
“Be sure to check that they are suitably qualified, and have the right understanding of the Mexican real estate market”
It is vital to find a real estate agent that is experienced with the Los Cabos market and can guide you through the purchasing process. Be sure to check that they are suitably qualified, and have the right understanding of the Mexican real estate market, and put your interests first and foremost from start to finish. Ask them about their previous experience in the local market, and make sure that they have a clear history of selling and buying in the area. They will be able to negotiate offers on your behalf and help you find the ideal Los Cabos property for you and your family.
- Offer to Purchase
“You will have to pay close attention to things like the asking price, the currency exchange rate, HOA fees and transfer of certain memberships, and closing costs”
You can tour a number of homes, and eventually, you will find one that is the perfect fit. The next step involves making an offer to purchase, which will be handled by your agent. This offer must be made in both Spanish and English. There may be a number of counter-offers from both sides before it is accepted. The market is competitive and dynamic, so you will have to pay close attention to things like the asking price, the currency exchange rate, HOA fees and transfer of certain memberships, and closing costs. An experienced real estate agent can help negotiate all of these things and more on your behalf.
- Offer to Purchase Acceptance
Once the offer has been accepted, there will be various conditions that need to be satisfied. This will include a home inspection and any repairs that need to be made. The buyer will need to provide personal identification at this point, and Mexican law also requires the buyer to provide a “Know Your Customer” form. With these and some other documentation in place, an Escrow Account can be opened, an initial deposit made, due diligence performed, and earnest money deposited. Once all of these conditions have been met, it is time to move on to the closing process.
- Closing
The last step of the buying process is closing, and it will take around 60-90 days. An approximate closing date will be established in the offer to purchase acceptance. The process of closing will include the escrow payments, and all of the paperwork will be finalized. The Notario is an experienced Mexican lawyer appointed by the state to oversee the process, ensure deed title is clear, and record the purchase with the Public Registry. Once this is done, you can get your keys and say hello to your new home in this dream destination.
Buying a home in any location can be complex, but buying in Mexico comes with its own specific considerations. It is fairly simple to own your own share of this tropical paradise. You will now have a clearer idea on what to expect in the buying process. If you are looking at Los Cabos houses for sale, it is vital to put your trust in a real estate agent that is experienced and well-qualified. My team and I have a thorough understanding of the local market and can ensure a smooth and easy buying process from the first dream to ‘welcome home’. You can contact us, or visit one of our offices.
Signs That Tell You This House is “The One”
We’re all familiar with the concept of “the one.” In relationships, it’s your soulmate. In shopping, it might be just the thing you’re looking for to add to your closet. In real estate, it could be the right realtor or the right contractor to help you fulfill your real estate dreams. And it could also be the house you’ll want to spend most of your days for as long as possible. But just as everything else, this dream house is hard to find. As you look at homes for sale in Los Cabos and find properties you like, how can you tell which is exactly “the one?” Click here to learn how.
How to find the best agent to help you purchase your Los Cabos home
If you’ve got Los Cabos in your sights for a vacation home or you’ve got a more permanent resident status in mind, don’t just jump in and hire a real estate agent to represent you without properly vetting him first. It’s important you not only find the right fit, but also seek someone with exhaustive local knowledge with whom you can cultivate a high level of trust. Read on to learn what to look for in an agent and how to find the best person for the job. Follow this guide and you’ll have the home you’ve always strived to own in no time at all.
10 things to remember when buying a beachfront home
If you’ve made the decision to buy a beachfront vacation home or move permanently to any of Los Cabos’s gorgeous beach communities, make sure the property you buy remains worthy of your investment. How? By ensuring the home is built to withstand saltwater and high winds, your insurance covers likely eventualities, and you’ve looked into the kinds of activities allowed on the beach fronting your home. Think, too, of the surrounding areas. Can you expand? How will structures like patios or view decks increase the value of your property aside from providing you with hours of personal enjoyment? To find out more, read this article.
