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 November 30, 2017.

Esperanza Resort

Auberge Private Residences, Cabo San Lucas, Mexico

(For more info on this condo click here

Most noteworthy is that the total numbers of sales for all residential properties in all price ranges are up by a 19% to 425 transactions.

The total sales volume is up by a 12% to $278,389,000 US Dollars.

Total numbers of properties under contract are up by 25% to 454 contracts and the average sales price is down 6% to $655,000 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 November 30, 2017 the total number of closed transactions for condos is up by a 17% to 230 units. The total sales volume is up by 20% to $102,589,000 US Dollars. The average sales price is also up by 2% to $446,000 US Dollars.

Single Family Homes

Closed transactions for single family homes for the same period are up by a 21% to 195 units. The total sales volume is up by 7% to $175,801,000 US Dollars. The average sales price is down by 11% to $902,000 US Dollars.

Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 27% to 79 closed escrows. The total sales volume is up by 13% to $178,344,000 US Dollars. The average sales price is down by 11% to $2,258,000 US Dollars.

Finally, the market for properties below one Million US Dollars has turned around over summer and is up compared to the same period a year ago. The total numbers of sales, accepted offer and total sales volume are. The total numbers under contract went up by 28% to 379 accepted offers. Total units sold are up an 18% to 346 units and the total sales volume is up by 10% to $100,045,000. The average sales price is down by 7% to 289,000 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 December 12, 2017 at 4:51 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Condos in Cabo, Houses in Cabo, Los Cabos Real Estate, Market Report, Martin Posch, Mexico Real Eatate, Real Estate in Cabo, 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 , , , , , , , ,