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The
real estate market in Vallarta and the Bay  There
are several factors making this market unique. There are few mortgages on residential
real estate here in the Bay. Most of the purchases of villas and condominiums
are in cash. Because there are few loans made by financial lending companies,
there are fewer yardsticks to establish price or value. A lender will require
comparables of sold properties similar to the property being mortgaged. The lender,
in this case as a third party, drives the market to acknowledge "comparable
value." This situation does not exist in an "all cash" market where
the parties involved in the sale do not report the actual price. In Vallarta,
the buyer and seller have to rely on individual sources to give them accurate
information as to selling prices.
In a beautiful resort
area where you have primary and second homes, the qualities that the buyer looks
for in a purchase are striking: View is paramount here. The price a buyer pays
for a view can be a very subjective thing. The view is in "the eye of the
beholder." View can increase the cost of a property many thousands of dollars.
Location brings a bigger price, also. In this case, location
is closeness to the beach, ocean, jungle or mountain. Whatever the buyer has determined
is the most pleasing to him as view, is what he wants. The sheer physical beauty
of a location can be more important than anything else to the buyer. Homes
in neighborhoods can be very different from each other. Commercial operations
may be next door. There are few market appraisals by lenders to require that similar
properties be in close proximity to each other. You find a charming home in a
commercial area or neighborhood of lesser-priced homes. The homes in the neighorhood
do not negatively impact the value of the subject property. The purchase is made
as a matter of personal choice by the buyer paying cash. There is a vitality to
the community which has mixed uses and types of properties in close proximity
to each other. In the Bay of Banderas, foreigners cannot
own their homes without a bank trust. A national can buy and sell his property
much more quickly and inexpensively. The foreigner will need to pay for the bank
trust after waiting for the permits and legal papers create and register the trust.
Sometimes I have seen people get very impatient with each other over the time
it takes to complete a transaction. It is a fact of doing business here that there
are differences in how a national and a foreigner can own property. These differences
require patience from both parties. "Due diligence"
is looked on a little differently than you may be use to. Many sellers think that
certain questions a buyer has before purchasing, should be researched before tending
an offer. This is different from the "conditions to a sale" which a
buyer may require in his offer. A "condition of sale" may be verification
of the condo fees or that the utilities are paid. "Due diligence" may
ask for a 90-day window to determine if the property fits the expectations of
the buyer. "Free Looks" are frowned on here. If you are going to negotiate
successfully, you need to understand and accept that there are differences in
the way of doing business. Mexico does not require licensing
or specialized education of its real estate sales people. There is no federal
organization that regulates the actions or level of competance of a real estate
company or agent. The national organization known as AMPI seeks to raise the professionalism
of real estate practioners by setting business standards and establishing a code
of ethics which members agree to follow. The states of
Jalisco and Nayarit have some of the most sophisticated codes in all of Mexico
for the protection of owners in condominium associations, use of letters of intent
and public registration of sales of property. Vallarta
is one of the few cities in Mexico to have a Multi-List available to the public.
Listings of properties in a more organized, uniform manner, help the agents and
the public have a better understanding of the available inventory. The list of
properties available through our local multi-list is growing as the practice of
exclusive listings becomes more accepted. Recently, an
international bank from Hong Kong purchased one of the major banks in Vallarta.
Last year, a Dutch international company acquired a major interest in one of the
larger insurance companies in Mexico. The NAFTA agreement between the North American
countries continues to open markets and create more cooperation among us. As
Vallarta continues to become a more international city, the sale of real estate
will continue to mature. The real estate market will assimilate the influences
of the world community within the context of the local culture and history. Harriet
Murray, Broker For additional information
on properties for sale or lease within the bay, please call or e-mail me at: harriet@pvmirror.com
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