Real Estate in Cabo Residential Market Report

The first six months are over and it is time to look at the real estate in Cabo. This report only includes single family homes & condos from Cabo San Lucas to San Jose del Cabo. I will compare this years numbers to last year’s for the same period of time.

Real Estate in Cabo has started very slow this year but little by little the numbers have been increasing over the last months and weeks. So, let’s have a look at the numbers:

Condominios (For Condo Search click here)

Total active listings for condos increased by 63% to 639 active listings. New listings also increase by 121% to 317 listings. Units under contract decreased by 5% to 143 contracts. Numbers of units sold decreased also 5% to 110 units. Total sales volume increased by 24% to %57,002,000 US dollars with the average and median sales price up to 32% tp $518,000 US dollars and 15% to $259,500 US dollars respectively. The list to sold ratio is at 92%

Single Family Homes (For Single Family Home Search click here)

Total active listings for single family homes increased by 69% to 543 active listings. New listings as well increased by103% to 256 listings. Homes under contract decreased by17% to 111 accepted offers. Number of units sold decreased by 4% to 96 single family homes and the total sales volume decreased by 30% to $55,473,000 US dollars. Both the average sales price and median sales price decreased by 27% to $578,000 US dollars and median sales price was down only $1,000 US dollars to $315,000 US dollars. The list to sold ratio decreased to 90% from 91% a year earlier.

That brings us to following numbers overall. Total active listings 1,182, which is an increase of 66% with new listings of 573 units that represents an increase of 113%. Total units under contract for the first six months has decreased by 11% to 254 units. Closed units fell by 6% to 206 units and the total sales volume felt by 11% to $112.476,000 US dollars. The average sales price felt to $546,000 US dollars which is a 5% decrease but the median sales price increase by 3% to $275,000 US dollars.

If you would like to receive a report for a specific neighborhood please feel free to contact me at:

martinposch@windermere.com

US toll free (855) 877-2226

Mobile (624) 147-5857

 

 

Posted on July 3, 2018 at 5:04 pm
Martin Posch | Category: 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, Real Estate in Cabo, Windermere Los Cabos | Tagged , , , , , , , ,

Residential Real Estate Market Report

Here is the Los Cabos residential real estate market report (only condos and single family homes) from September 1, 2017 to February 28, 2018.

Real Estate in Cabo

The total numbers of sales for all residential properties in all price ranges were down by a 2% to 181 transactions.

The total sales volume was up by a 2% to $131,594,000 US Dollars.

Total numbers of properties under contract is down by 7% to 205 contracts. Due to a higher sales volume the average sales price was up 4% to $727,000 US Dollars.

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

Condos

From September 1, 2017 to end of February, 2018 the total number of closed transactions for condos were down by 14% to 94 units. While the total number of sales were down the total sales volume was up by 7% to $51,680,000 US Dollars. Due to the higher sales volume the average sales price was up from $438,000 to $550,000 US Dollars.

Houses

Closed transactions for single family homes for the same period were up by a 16% to 87 units. The total sales volume was down by 1% to $79,914,000 US Dollars. Because of the lower volume the average sales price was down by 14% to $919,000 US Dollars.

One Million plus Market

Total numbers of closed sales for properties above $1,000,000 US Dollars were down 13% to 33 closed escrows. As a result the total sales volume was down by 6% to $85,235,000 US Dollars. The average sales price was up 9% to $2,583,000 US Dollars.

Below One Million Market

The market for properties below one Million US Dollars recovered and showed positive numbers. Therefore the numbers of sales and the total sales volume was up as well. The total numbers under contract went down by 1% to 182 accepted offers.Total units sold were up by 1% to 148 units and the total sales volume was up by 20% to $46,359,000 USD. The average sales price for condos and homes was up by 19% to $313,000 USD.

As a result of the negative news in 2017 I do anticipate a challenging year for real estate in 2018.

If you would like to receive a Residential Real Estate Market Report on a specific neighborhood,please let me know and I’m more then glad to provide you with the numbers.

Posted on March 14, 2018 at 5:47 pm
Martin Posch | Category: 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, Real Estate in Cabo, Seller's Fee in Mexico, 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 to December 31, 2017

Puerta del Sol, Cabo del Sol

The total numbers of sales for all residential properties in all price ranges were up by a 16% to 443 transactions.

The total sales volume was up by a 12% to $293,049,000 USDollars.

Total numbers of properties under contract was up by 20% to 489contracts. The average sales price was down a 4% to $662,000 US Dollars.

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

From January 1 to end of December, 2017 the total number of closed transactions for condos were up by 14% to 239 units. The total sales volume was up by 27% to $112,730,000 US Dollars. The average sales price was up from $424,000 to $472,000 US Dollars.

Closed transactions for single family homes for the same period were up by a 17% to 204 units. The total sales volume was up by 3% to $180,319,000 US Dollars. The average sales price was down by 11% to $884,000 USDollars.

Total numbers of closed sales for properties above $1,000,000 US Dollars were up 27% to 84 closed escrows. The total sales volume was up by 15%to $188,879,000 US Dollars. The average sales price was down 10% to $2,249,000US Dollars.

The market for properties below one Million US Dollars recovered and showed positive numbers compared to earlier in the year. Total number of sales and accepted offers were up and the total sales volume was upas well. The total numbers under contract went up by 22% to 409 accepted offers. Total units sold were up by 13% to 359 units and the total sales volume was up by 7% to $104,170,000 USD. The average sales price for condos and homes was down by 6% to $290,000 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.

Posted on February 19, 2018 at 2:09 pm
Martin Posch | Category: 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, Mexico Real Eatate, Real Estate in Cabo, Seller's Fee in Mexico, Windermere Los Cabos | Tagged , , , , , , , , , ,

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 | Category: 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 | Category: 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 | Category: 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 , , , , , , , ,

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 | Category: 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 , , , , , , ,