Los Cabos Residential Real Estate Market Report

Here are the numbers for the Los Cabos Residential Real Estate Market Report (only condos and single family homes) from January 1 to September 30, 2017

Los Cabos, Mexico

Casa Zelda

The total numbers of sales for all residential properties in all price ranges are up by a 12% to 336 transactions.

With that said, let’s just  jump into it. The total sales volume is up by a 3% to $211,959,000 US Dollars.

Total numbers of properties under contract are up by 28% to 404 contracts. The average sales price is down a 8% to $631,000 US Dollars.

Now let’s see how the numbers look like for the condo and single family home market:

From January 1, 2017 to end of September, 2017 the total number of closed transactions for condos is up by a 12% to 181 units. The total sales volume is up by 6% to $78,738,000 US Dollars. The average sales price is down by 5% to $435,000 US Dollars.

Closed transactions for single family homes for the same period are up by a 12 to 155 units. The total sales volume is up by 1% to $113,220,000 US Dollars. The average sales price is down by 9% to $859,000 US Dollars.

Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 19% to 63 closed escrows. The total sales volume is up by 5% to $134,154,000 US Dollars. The average sales price is down 12% to $2,129,000 US Dollars.

The market for properties below one Million US Dollars is starting to show conflicting numbers compared to the same period a year ago. Total number of sales and accepted offer are still up but the total sales volume has started to decrease. The total numbers under contract went up by 30% to 333 accepted offers. Total units sold is up a 11% to 273 units and the total sales volume is the same as last years period at $77,805,000 USD. The average sales price for condos and homes are down by 10% to $285,000 USD.

If you would like to receive an update on a specific neighborhood please let me know and I’m more then glad to provide you with the numbers.

Martin Posch

Trusted Real Estate Advisor

Martin Andreas Posch

Windermere Real Estate Los Cabos

martinposch@windermere.com

Office: (624) 131-3330

Mobile: (624) 147-5857

From US: +52 1 (624) 147-5857


Posted on October 17, 2017 at 1:01 pm
Martin Posch | Posted in Uncategorized |

How much are Buyer’s Fee’s in Mexico

One of the biggest mistake I see from newer agents is that they don’t address Buyer’s Fee’s during their sales pitch. Buyer’s Fee’s are higher in Mexico, especially in the restricted areas such as the Baja Peninsula.

Buyer’s fee’s or closing cost can range from 3% to 10% of the purchase price for foreigners in Los Cabos.

  • Here is a list of Buyer’s Fee’s:
Fee Description Assessed by/Paid to Explanation of Cost/Purpose
 

ISABI – Acquisition Tax

 

Los Cabos Municipality

 

2% of the Property Purchase

 

Tax Appraisal Permit Fee

 

Los Cabos Municipality

 

This fee is assessed on the purchase price and/or tax appraisal and records the tax Appraiser’s findings with municipal tax office.

 

Public Registry Fee

 

Los Cabos Municipality

 

This is the recordation fee for the Deed of Trust in the Public Registry and is based on your purchase price.

 

Certificate of No Tax Debt – Property tax debt – No Water Debt

 

Los Cabos Municipality

OOMSAPAS (Water Service)

 

The certificates assure that the Seller has no debt recorded on the property. And that no liens have been filed for any reason against the property. This is an estimated flat fee as the cost as fluctuates based on the Peso value. The certificate of no liens is pulled twice in the closing process.

 

Notary Fee

 

The Notary

 

For the legal service associated with the transfer of the title. Including Trust Deed elaboration, trustee bank approval and communication, coordination of all municipal and federal permits, etc. The fee is based on the Purchase price of the property and has a cap limit for properties valued at more then $2mm USD.

 

Foreign Affair Permit and Registration (FAM or SRE)

 

Foreign Affairs Ministry ℅ of the Trustee Bank

 

This requisite permittee is actually two costs – the permit fee, as well as the registration of the foreign Purchaser(s) acquisition in Mexico, and authorization of purchase. This is a fixed fee

 

Trustee Bank Initiation Fee

 

Trustee Bank

 

This fee is assessed for the review and acceptance of the Purchaser’s Trust Deed. This is a fixed fee, generally the same cost as the annual trust maintenance fee (below)

 

Trust Bank Annual Fee

 

Trustee Bank

 

This fee is assessed for the ongoing service of acting as trustee of the Purchaser’s Trust and the associated filing requirements. This is a fixed fee, specified in the Trust Deed at execution and while the fee varies by bank it is generally between $333 – $666 USD annually.

 

Certified Translation Fee

 

3rd Party Translator

 

All documents associated with the Purchaser’s Acquisition but duly translated by a certified translator for acceptance by the Trustee Bank, Notary and Foreign Affairs Ministry. This includes identification, proof of address, corporate or entity documents, etc. Cost is on a per page basis. The cost of the certified translation of the Trust Deed is included, however, in the Transaction fee.

 

Transaction Fee

 

Closing Department

 

To offset the cost of courier services, foreign notary services for document authentication, etc. This is a flat fee.

 

Escrow Fee

 

Escrow Agent

 

The cost of the escrow and supervision. This is a fixed fee.

 

Optional – Title Insurance Fee

 

Title Insurance Company

 

Depending on the Company.

* This table of fee’s was provided by Lic. Javier Mazoy of Lex Advisors.

Closings normally take between 60 and 90 days. This is from the time all necessary documents have been provided by both parties. If you have to deal with HSBC or Scotiabank closing can take up to 180 days.

Part of the Buyer’s Fee’s or closing costs have to be paid up front. Normally I can be between $3,000 – $5,000 USD.  Some company will ask for as much as 50% to the total Buyer’s Fee’s in advance. This can be wired together with your increased Earnest Money into the Escrow Account.

Please feel free to contact me with any questions or doubts you might have. I’ll be more then happy to assist you selling your property.

Martin Posch

martinposch@windermere.com

(624) 147-5857 Mobile 

From the US please dial: +521 (624) 147-5857

 


Posted on September 21, 2017 at 5:01 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Closing Costs in Mexico, Club Campestre San Jose del Cabo, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Market Report, Martin Posch, Mexico Real Eatate, Seller's Fee in Mexico, Uncategorized, Windermere Los Cabos | Tagged , , , , , , , , , , ,

How much are Seller’s Fee’s in Mexico

Seller’s Fee’s in Mexico

Clients are always asking me how much are the Seller’s Fee’s in Mexico when they sell their property. There are only two fees when you sell your vacation home or condo. You have to pay capital gains tax, if any, and the real estate commission. The rest of the fees are paid by the purchaser.

Seller's Fee in Mexico

Photo from Hacienda Beach Resort & Residencies, Cabo San Lucas, Mexico

Escrow fees can be negotiated to be split between both parties. Sellers are responsible to have  Mexican property taxes, home owners dues & special assessments paid up to the day of closing, Utilities, such as electricity and water can be prorated. Unfortunately your yearly trust fee can not the prorated. With that said, if you just paid your trust fees for an entire year and you sell your property one month later the trustee bank will not give you any money back.

When you sell your property in Mexico, capital gains tax will be calculated by the notary public. This tax is calculated in Mexican Pesos and not US Dollars. That means if you purchased our property for $500,000 USD at and exchange rate of 10 Pesos per one US Dollar your cost bases is $5,000,000 Pesos. If you sell your property today for the same US Dollar amount but the exchange rate is at 17.5 Pesos per one US Dollar you will get $8,750,000 Pesos. This results in a gain of $3,750,000 Pesos. The Mexican IRS will tax you a 35% of this gain.

The real estate commission is a deduction.  And you will receive an inflationary credit for each year you have owned your property. Original invoices (facturas) for improvements can also be submitted to the notary public for consideration. There are also tax strategies that can be applied at the time of closing in order to reduce your gain.

Please remember there is no double taxation between Mexico, USA and Canada. So it is important and I highly recommend you to talk to your accountant back home with regards to your income taxes. You should receive a tax credit for capital gains tax you paid in Mexico.

Sellers are also asking me a lot about the IVA tax (Value added Tax) that is added to the real estate commission. Almost all services are subject to a 16% IVA tax in Mexico. And the real estate commission you pay is considered a service. This fee is 100% deductible from your gain.

Closings have become more complicated lately. Normally an average closing takes about 60 to 90 days from the day all necessary documents have been provided to the closing agent. If your trust is with HSBC or Scotiabank closings can take six months or more. So don’t spend the money until your deal closes.

Please feel free to contact me with any questions or doubts you might have. I’ll be more then happy to assist you selling your property.

Martin Posch

martinposch@windermere.com

(624) 147-5857 Mobile 

From the US please dial: +521 (624) 147-5857


Posted on September 14, 2017 at 3:42 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Closing Costs in Mexico, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Market Report, Martin Posch, Mexico Real Eatate, Seller's Fee in Mexico, Windermere Los Cabos | Tagged , , , , , , , , ,

Los Cabos Residential Real Estate Market Report

First of all the number for the Los Cabos Residential Real Estate Market Report for the first eight months  are still stronger on accepted offers, closed deal and total sales volume. But the average sales price has been declining over the last few months.

Los Cabos Residential Real Estate Market Report

Casa Francisco, Santa Carmela, MLS 17-1767, Los Cabos

(For more details click here)

Here are the numbers for the Los Cabos Residential Real Estate Market Report (only condos and single family homes) from January 1 to August 31, 2017.

The total numbers of sales for all residential properties in all price ranges are up by a 17% to 304 transactions.

The total sales volume is up by a 13% to $187,589,000 US Dollars.

Total numbers of properties under contract are up by 35% to 387 contracts. The average sales price is down a 3% to $617,000 US Dollars.

Now let’s see how the numbers look like for the condo and single family home market:

Condos

From January 1, 2017 to August, 2017 the total number of closed transactions for condos is up by a 17% to 164 units. The total sales volume is up by 28% to $71,819,000 US Dollars. The average sales price is up 8% to $438,000 US Dollars. Finally the List Price to Sold Ratio in creased by 3 percentage points to 92%.

Single Family Homes

Closed transactions for single family homes for the same period are up by a 15% to 140 units. The total sales volume is up by 5% to $115,770,000 US Dollars. The average sales price is down by 8% to $827,000 US Dollars. Furthermore the List Price to Sold Ratio went up from 88% to 92%.

One Million plus Market

Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 27% to 56 closed escrows. The total sales volume is up by 12% to $118,434,000 US Dollars. The average sales price is down 12% to $2,115,000 US Dollars.

Below Million Market

Properties below one Million US Dollars is starting to show conflicting numbers compared to the same period a year ago. Total number of sales and accepted offer are still up but the total sales volume has started to decrease. The total numbers under contract went up by 39% to 320 accepted offers. Total units sold is up a 12% to 248 units and the total sales volume is down by 1% to $69,155,000 US Dollars. The average sales price for condos and homes are down by 11% to $279,000 USD.

If you are interested in receiving a specific Residential Real Estate Market Report fell free to contact me.


Posted on September 6, 2017 at 1:49 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Market Report, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , , ,

Los Cabos Residential Real Estate Market Report

First of all, here are the numbers for the Los Cabos Residential Real Estate Market Report (only condos and single family homes) January 1, 2017 to July 31, 2017.

Most noteworthy is that the total numbers of sales for all residential properties in all price ranges are up by a 14% to 264 transactions.

The total sales volume is up by a 13% to $157,906,000 US Dollars.

Total numbers of properties under contract are up by 32% to 350 contracts and the average sales price is down 1% to $598,000 US Dollars.

Now let’s see how the numbers look like for the condo and single family home market:

Condos

First of all, from January 1, 2017 to July 31, 2017 the total number of closed transactions for condos is up by a 21% to 149 units. The total sales volume is up by 26% to $64,290,000 US Dollars. The average sales price is also up by 4% to $413,000 US Dollars.

Single Family Homes

Closed transactions for single family homes for the same period are up by a 5% to 115 units. The total sales volume is up by 5% to $93,616,000 US Dollars. The average sales price is also up by +/- 0% to $814,000 US Dollars.

Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 44% to 46 closed escrows. The total sales volume is up by 28% to $97,619,000 US Dollars. The average sales price is down by 11% to $2,122,000 US Dollars.

Finally, the market for properties below one Million US Dollars is starting to show lower sales numbers compared to the same period a year ago. Total number of sales and accepted offer are still up but the total sales volume has started to decrease. The total numbers under contract went up by 34% to 288 accepted offers. Total units sold is up a 9% to 218 units and the total sales volume is down by 5% to $60,286,000. The average sales price is down by 13% to 277,000 US Dollars,

Are you interested in getting a Los Cabos Residential Real Estate Market Report for a specific area? Please feel free to contact me and I’ll be more then glad to provide you a specific report.


Posted on August 15, 2017 at 5:01 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Condos in Cabo, Houses in Cabo, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , , , ,

House Hunters International, San Jose del Cabo 2016

Amazingt experience and lots of fun working with Bob & India and te crew of House Hunters International for three days in San Jose del Cabo in spring 2016. Los Cabos Real Estate has a lot to offer and a couple of the featured properties are still available. San Jose del Cabo is the more quiet and family oriented of the two towns. Cabo San Lucas is more for people that like to party. San Jose del Cabo is more tranquil and has a more Mexican flair. The San Jose del Cabo Art Walk on Thursdays and the San Jose del Cabo Organic Farmers Market on Saturdays are just two of the great events during our high season to visit. You will also find a great numbers of restaurants where you can enjoy a delicious meal with family and friends. Do not miss these activities on your next trip to Los Cabos. You will not regret it. With a great number of golf courses Los Cabos has become one of the best golf resort in all of Latin America. And there are plenty of courses to choose from in San Jose del Cabo.

Casa Blanca

Casa Blanca or currently called Casa Zeida is listed for $550,000 USD. Great contemporary home in San Jose del Cabo. This home was featured on the cover of Azur Magazine’s January/February edition, spotlighting the next wave of creative residential projects. Casa Zeida is a must see for your clients looking for a truly architectural contemporary home. At Casa Zeida, a truly modern architectural design concept incorporates the play on light and shadow into the interior decor. While maximizing sea and mountain views providing fresh sea breezes throughout the home. The focal point of the open-air courtyard style floor plan is a swimming pool with stepping stone walk way. pocket sliders open to te great room with galley style kitchen open completely to the outdoors.  Great rental history. This home is very close to great surfing and restaurants.

Villa 4, Villas de Mexico, Club Campestre, San Jose del Cabo

Villa 4 at Villas de Mexico is on the market for $379,000 USD and seller offers tailored financing for the right buyer. Villa de Mexico is located in Club Campestre in San Jose del Cabo. This condo is beautifully furnished and decorated and features three bedrooms and two baths. Tommy Bahama furnitures are nicely appointed. Two underground, assigned parking and a storage area for your personal belongings. The kitchen is full equipped. This unit is read to be enjoyed or rent it out while you are gone. With the social membership included in the sales price makes this property a great buy. Golf membership is also available to purchase for the sophisticated golfers. For more information on property please click HERE to visit my webpage.

Both properties are listed on our local MLS and Windermere Real Estate does not represent the Sellers.


Posted on June 5, 2017 at 5:31 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Club Campestre San Jose del Cabo, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , ,

Los Cabos Residential Real Estate Market Report

First of all, here are the numbers for the Los Cabos Residential Real Estate Market Report  (only condos and single family homes) November 1, 2016 to April 30, 2017.

Los Cabos Residential Real Estate

The total numbers of sales for all residential properties in all price ranges are up by a 25% to 182 transactions.

The total sales volume is up by a 38% to $112,517,000 US Dollars.

Total numbers of properties under contract are up by 43% to 272 contracts. The average sales price is up a 11% to $618,000 US Dollars.

Now let’s see how the numbers look like for the condo and single family home market:

Condos

From November 1, 2016 to April 30, 2017 the total number of closed transactions for condos is up by a 20% to 101 units. The total sales volume is up by 29% to $39,324,000 US Dollars. The average sales price is up by 7% to $389,000 US Dollars.

Single Family Homes

Closed transactions for single family homes for the same period are up by a 30% to 81 units. The total sales volume is up by 42% to $73,194,000 US Dollars. The average sales price is also up by 9% to $904,000 US Dollars.

Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 75% to 35 closed escrows. The total sales volume is up by 80% to $76,328,000 US Dollars. The average sales price is up by 3% to $2,181,000 US Dollars.

Finally, the market for properties below one Million US Dollars is starting to show conflicting numbers compared to the same period a year ago. Total number of sales and accepted offer are still up but the total sales volume has started to decrease. The total numbers under contract went up by 39% to 225 accepted offers. Total units sold is up a 17% to 147 units and the total sales volume is down by 8% to $36,190,000.

Are you interested in getting a Los Cabos Residential Real Estate Market Report for a specific area? Please feel free to contact me and I’ll be more then glad to provide you a specific report.


Posted on May 11, 2017 at 3:33 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Condos in Cabo, Houses in Cabo, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , , ,

Los Cabos Residential Real Estate Market Report

Here is the Los Cabos residential real estate market report (only condos and single family homes) from August 1, 2016 to January 31, 2017

The total numbers of sales for all residential properties in all price ranges are up by a 52% to 167 transactions.

The total sales volume is up by a 70% to $122,929,000 US Dollars.

Total numbers of properties under contract are up by 75% to 200 contracts. The average sales price is up a 12% to $736,000 US Dollars.

Great view from Hacienda La Carreta, Punta Ballena, Los Cabos, Mexico

Los Cabos Residential Real Estate Market Report

First of all let’s look at the Los Cabos residential real estate market report for condos and houses:

Condos

From August 1, 2016 to January 31, 2017 the total number of closed transactions for condos is up by a 74% to 94 units. The total sales volume is up by 105% to $31,510,000 US Dollars. The average sales price is up a 18% to $335,000 US Dollars.

Houses

Closed transactions for single family homes for the same period are up by a 30% to 73 units. The total sales volume is up by 60% to $91,420,000 US Dollars. The average sales price is also up by 23% to $1,252,000 US Dollars.

Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 70% to 34 closed escrows. The total sales volume is up by 81% to $86,794,000 US Dollars. The average sales price is up by 7% to $2,553,000 US Dollars.

The market for properties below one Million US Dollars has also improved significantly. The total numbers under contract went up by 70% to 170 accepted offers. Total units sold is up a 49% to 134 units and the total sales volume is up 49% to $36,310,000 US Dollars.

As a result of the sharp increase of sales above a million US Dollars the average sales prices are significantly higher. The median sales price for condos actually decreased a 15% to $184,000 USD. For houses it is a different picture. The median sales price increase a stunning 57% to over $588,000 USD.

If you would like to receive an update on a specific neighbourhood please let me know and I’m more then glad to provide you with the numbers.


Posted on February 4, 2017 at 2:43 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Condos in Cabo, Houses in Cabo, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , , , ,

Los Cabos Residential Real Estate Market Report

Here are the numbers for the Los Cabos residential real estate market report  (only condos and single family homes) from January 1 until December 31, 2016.

As I mentioned in my introduction, the market has started to recover and even the condo market has surpassed the 2015 numbers. .

The total numbers of sales for all residential properties in all price ranges are up by a 17% to 370 transactions.

The total sales volume is up by a 56% to $239,829,000 US Dollars.

Total numbers of properties under contract are up by 29% to 418 contracts. The average sales price is up a 33% to $648,000 US Dollars.

Now let’s see how the numbers look like for the condo and single family home market:

For 2016 the total number of closed transactions for condos is up by a 29% to 199 units. The total sales volume is up by 48% to $73,369,000 US Dollars. The average sales price is up a 14% to $369,000 US Dollars.

Closed transactions for single family homes are up by a 4% to 171 units. The total sales volume is up by 59% to $166,462,000 US Dollars. The average sales price is also up by 51% to $973,000 US Dollars.

These numbers reflect a steep increase. Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 69% to 59 closed escrows. The total sales volume is up by 111% to $144,725,000 US Dollars. The average sales price is up by 25% to $2,453,000 US Dollars.

The market for properties below one Million US Dollars looks different. The total numbers under contract went up by 21% to 345 accepted offers. Total units sold is up a 10% to 311units and the total sales volume is up 11% to $95,105,000 US Dollars.

If you would like to receive an update on a specific neighbourhood please let me know and I’m more then glad to provide you with a more specific Los Cabos Residential Real Estate Market Report.

Click here for property search.


Posted on January 5, 2017 at 10:03 am
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , ,

Los Cabos Residential Real Estate Market Report

Here are the numbers for the residential market (only condos and single family homes) from January 1 until August 31, 2016.

As I mentioned in my introduction, the market has started to recover and even the condo market has surpassed the 2015 numbers. .

The total numbers of sales for all residential properties in all price ranges are up by a 4% to 253 transactions.

The total sales volume is up by a 50% to $156,345,000 US Dollars.

Total numbers under contract are up by 15% to 290 contracts. The average sales price is up a 44% to $618,000 US Dollars. The medium sales price is down a 3% to $285,000 US Dollars

Now let’s see how the numbers look like for the condo and single family home market:

For the first eight months of 2016 the total number of closed transactions for condos is up by a 13% to 133 units. The total sales volume is up by 41% to $53,331,000 US Dollars. The average sales price is up a 24% to $401,000 US Dollars. Medium sales price stayed flat at $256,000 US Dollars. The list to sales ratio is at 85%.

Closed transactions for single family homes are down by an 4% to 120 units. The total sales volume is up by 54% to $103,015,000 US Dollars. The average sales price is also up by 62% to $858,000 US Dollars. The medium price is down by 3% to $323,000 US Dollars. The list of sale ratio is up three points to 88%.

These numbers reflect a steep increase. Total numbers of closed sales for properties above $1,000,000 US Dollars is up an 85% to 37 closed escrows. The total sales volume is up by 147% to $88,271,000 US Dollars. The average sales price is up by 33% to $2,386,000 US Dollars.

The market for properties below one Million US Dollars looks quite different. The total numbers under contract went up by 7% to 236 accepted offers. Total units sold is down a 3% to 216 units and the total sales volume is down 1% to $68,075,000 US Dollars.

If you would like to receive an update on a specific neighbourhood please let me know and I’m more then glad to provide you with the numbers.


Posted on September 5, 2016 at 5:14 pm
Martin Posch | Posted in Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , ,