Challenges in the Mexican Real Estate Market
By: Suki K. Tranqille*
If you want to buy a house in Mexico, you’re not alone. There has been a 60% increase in searches by Americans and Canadians interested in purchasing a property. In theory, the numbers make sense. Generally speaking, you can get more home for less in Mexico while enjoying a better quality of life with fresh food, fresh air, and a fresh perspective on living. What could go wrong? It turns out quite a bit.
The biggest challenge in the market is the absence of a system that will allow for true comparables. Foreigners, accustomed to an MLS system and an organized agreement among realtors, are often surprised by the rules (or lack thereof) of real estate in Mexico. At first glance, it seems similar, and realtors will boast of credentials that sound like it’s a type of license – so you don’t waste your time I’ll let you know it is not.
No authority governs the sale of property in Mexico. There is also no incentive for realtors to work together and no clear line between buyers’ and sellers’ agents. What that means to you is that realtors are often incentivized to get the highest possible price for any property, and the properties they will recommend to you are those they have listed. What does that mean to you? That means you’re going to have to date a few different realtors.
The best way to get a broad view of what’s available to you is to work with various realtors, those affiliated with larger companies, and those connected directly with owners. While this is the best way to get the best deal, it does mean you’ll have to get organized to keep track of who you’re talking to, what homes you saw, and the pros and cons of each property. Essentially you will want to create your own comparables to determine the best home for you.
Test Drive the City or Area Before You Buy
Purchasing real estate is a fairly large investment, and buyer’s remorse in a foreign land is a circumstance you want to avoid. Visiting any place is very different from living there. There is much to consider, i.e., health care, community, transportation, language, cultural events, department stores, restaurants, libraries, schools, bike trails, and safety. It takes a year of living before you can answer those questions for yourself. My advice to you is…Take your time.
Mexico Home Buying Course
There are many things to consider before you buy property in Mexico. Take my Mexico Home Buying Course before you decide if investing is right for you.
About the Author: Suki is a long-term traveler and foreigner who lives with her family in Oaxaca, MX. The family’s journey began in 2012 in Quito, Ecuador. In the 10 years since, the journey offered lessons, learning experiences, and unexpected joy. Suki offers a unique perspective as a property and business owner who has transitioned from an early digital nomad to an immigrant and resident of Mexico. She shares the journey of her process of purchasing property and starting a business in Mexico on mexicohomebuyingcourse.com. From purposeful cultural acquisition to learning a different language, Suki’s life abroad has been better than she ever imagined.
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