# Buying Real Estate in Mexico



## TundraGreen (Jul 15, 2010)

My take on your two questions.


Angeles said:


> …
> With many expats buying property at ******-inflated prices, isn't it making these beautiful places unaffordable for locals?


In some places, money from the north is definitely affecting local cost of living: San Miguel de Allende, Lake Chapala, and many beach towns come to mind. I think it is a mixed blessing. The foreigners provide a lot of income for locals at the same time that they affect local prices. Lots of other forces also are driving real estate costs at the high end. The narco money in some places and the growing middle and upper middle class come to mind.



Angeles said:


> …
> Is it possible (and desirable) to hire a local assistant to initiate a real estate deal in order to maintain a negotiating edge? Or even to hire a local to find an affordable rental property instead of using the English language sites?


I would definitely concur with avoiding English language web sites if you are looking for affordable property. In my limited experience, negotiating is not always a big part of the picture. Unlike the US, most property owners in Mexico are not carrying large mortgages that require monthly payments. And property taxes are so low that they are not a big deal. Consequently, there is not the same penalty for holding property that is not being used, that there is north of the border. In many cases, this leads to sellers who have in mind a price and are willing to just wait until someone comes along that is willing to pay it, even if it means waiting years.


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## ellibelli (Apr 11, 2013)

i agree with much of what TudraGreen has said--would also add that even in areas where American/Canadian money had driven prices up, there are many of those same owners who are desperate now. You can always make them a "low ball" offer, and strike a deal that meets both your needs.


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## Isla Verde (Oct 19, 2011)

ellibelli said:


> i agree with much of what TudraGreen has said--would also add that even in areas where American/Canadian money had driven prices up, there are many of those same owners who are desperate now. You can always make them a "low ball" offer, and strike a deal that meets both your needs.


Why are these NOB home owners suddenly desperate to leave Mexico?


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## Guategringo (Nov 9, 2012)

TundraGreen said:


> In my limited experience, negotiating is not always a big part of the picture. Unlike the US, most property owners in Mexico are not carrying large mortgages that require monthly payments. And property taxes are so low that they are not a big deal. Consequently, there is not the same penalty for holding property that is not being used, that there is north of the border. In many cases, this leads to sellers who have in mind a price and are willing to just wait until someone comes along that is willing to pay it, even if it means waiting years.


Tundra I beg to differ. I think that negotiating is always in the equation. Most homeowners here in mexico as well as in Guatemala will have an asking price higher than what they believe they can get, knowing that it will be negotiated lower. I beleive it is part of the culture. 

I know this is not buying a home but I just negotiated a rent with an option to buy in Queretaro. The couple wanted US$150,000 for the house and rent of US$650. I was able to get them down to US$135,000 and rent for a year at US$475. I have a year to decide to buy or not or walk away. At least allows me to decide if I like the city or not. 

Another example is in Chetumal. My wife's uncle is selling a home there for US$175,000 and there is not a house in the neigborhood worth more than US$125,000. He has been offered US$130,000 and is now thinking very seriously of accepting it. 

Just my opinion.....


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## GARYJ65 (Feb 9, 2013)

Guategringo said:


> Tundra I beg to differ. I think that negotiating is always in the equation. Most homeowners here in mexico as well as in Guatemala will have an asking price higher than what they believe they can get, knowing that it will be negotiated lower. I beleive it is part of the culture.
> 
> I know this is not buying a home but I just negotiated a rent with an option to buy in Queretaro. The couple wanted US$150,000 for the house and rent of US$650. I was able to get them down to US$135,000 and rent for a year at US$475. I have a year to decide to buy or not or walk away. At least allows me to decide if I like the city or not.
> 
> ...


I think you are both right!

Real estate is very different than in the US, mortgages and stuff. Also happens with construction materials and life span of houses, but that is another story.
Then we go to asking prices; some people in Mexico ask for the price they believe their property is worth, maybe because they ask the neighbors what the properties are worth in the area, maybe they had a dream about their properties costing that much or maybe they just flipped a coin.
A few owners are willing to spend just a little and get a commercial appraisal. Then, it is advisable to put 5 to 10% more as the asked price, to beat the bargaining.
Sellers also have to take into consideration selling taxes, if they are to be paid or maybe they could be exempt, and add it to the price.

Guategringo, one question, the rent with purchasing option, wich were the rules on that deal?


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## mickisue1 (Mar 10, 2012)

You guys are making me laugh. Whenever I'm watching House Hunters International, I yell at the people moving, when they pay full price for their new home, rent or buy.

It seems that only a handful of these people, dumb enough (if you will excuse the expression) to deal with American or British, for the most part, real estate agents in the first place, even consider the fact that they are expected to try to get the place for less money!

(Slaps head in disbelief.)


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