Top 10 Tips for Buyers at Lake Chapala
Even newcomers who have bought many homes in other parts of the world eventually realize that purchasing real estate here is a whole new ballgame. Almost all local real estate deals are for cash. There are precious few opportunities for financing of any kind.
Dealing in a cash market puts a new spin on the whole process. Here are ten points for you to consider before you buy a Lakeside home.
1. Don't rush. Spend enough time at Lake Chapala to know the neighborhoods and developments, how much monthly fees cost in different areas and other pertinent facts. Come and rent while you get to know the area and really decide which area is right for you.
2. Get the inventory before you make an offer. Customs are different here. The light fixtures, telephone line and water heater may not be included in the sales price.
3. Do your homework. Learn how real estate sales are done here. Don't be taken in by folks who say, "That's the way we do it in Mexico."
4. Trust your instincts. If you get "feelings" in the pit of your stomach, listen to them. Take a break from looking at houses, come back with a fresh head and lots of common sense. Don't be afraid to look "silly" to your agent, it is your money and your life.
5. Ask questions. Don't make assumptions and don't be afraid to ask lots and lots of questions. Keep a list as questions for your agent as they come up. A good agent will welcome your questions and wants to calm your concerns.
6. Know all the problems. Agents and owners are not bound by "disclosure laws." You need to find out all you can about the problems in a property, development or neighborhood. Insist on an inspection by an independent inspector. Don't have a potential contractors do the inspection. If he thinks he has a big job coming he now has a vested interest in you purchasing this property.
7. Check it out yourself. Go back without your agent to talk to the people living in the neighborhood or development. Ask neighbors who have lived there a while about noise, water problems, sewer problems, and fault lines. Would they buy on this street again? Check out the developer's earlier projects. Were all homes sold quickly? What are the problems? How much did the monthly fees go up when the developer signed off?
7. Watch out for drama and promises. This is now a much slower market; some agents are anxious to make a sale. The house you love will probably not sell tonight or anytime soon. AND it probably will not double in value in the next few months. Be extra cautious of any agent who uses these tactics to get your signature on the dotted line. Remember that old saying, "if the deal is too good to be true?it probably is."
8. Location, Location, Location. Nearly every buyer here says they are buying the last house of their lives. Most sell those houses in a few years. Some want to build, some buy bigger or smaller houses, some leave the area and some rent. In this market, it can take months or years to sell your home, especially if you spent too much for it. Buy a house with resale in mind; be sure to have adequate parking, minimal stairs, is in a good location and widely desirable floor plan and amenities.
9. Don't leave your brains at the border. If a property doesn't have a clear deed or adequate water supply at the time of your offer, don't buy it. When you purchase a property without a deed or water, you own a property with little value and a lot of worry, stress, and continuing legal and logistical problems.
10. Trust or Deed? Your personal situation, family, age, marital status, health, and intentions can all affect the cost and viability of the two legal methods of owning property here. Don't accept a global recommendation from your agent. If you have any doubts or want clarification, demand an appointment with your Notary.
Remember that when you pay cash for a house at closing, you aren't building equity or creating a tax advantage. You are taking a big chunk from your retirement portfolio and you are probably making the largest cash purchase of your lifetime. Take your time. Rent first until you know the lay of the land here at Lake Chapala.
You'll find more information about purchasing real estate at Lake Chapala and about renting here at Lakeside in the archived issues of Living at Lake Chapala at http://www.mexico-insights.com/. and at the weekly Living at Lake Chapala seminars held every Thursday at 10 a.m. in the bar of La Nueva Posada in Ajijic.
Dealing in a cash market puts a new spin on the whole process. Here are ten points for you to consider before you buy a Lakeside home.
1. Don't rush. Spend enough time at Lake Chapala to know the neighborhoods and developments, how much monthly fees cost in different areas and other pertinent facts. Come and rent while you get to know the area and really decide which area is right for you.
2. Get the inventory before you make an offer. Customs are different here. The light fixtures, telephone line and water heater may not be included in the sales price.
3. Do your homework. Learn how real estate sales are done here. Don't be taken in by folks who say, "That's the way we do it in Mexico."
4. Trust your instincts. If you get "feelings" in the pit of your stomach, listen to them. Take a break from looking at houses, come back with a fresh head and lots of common sense. Don't be afraid to look "silly" to your agent, it is your money and your life.
5. Ask questions. Don't make assumptions and don't be afraid to ask lots and lots of questions. Keep a list as questions for your agent as they come up. A good agent will welcome your questions and wants to calm your concerns.
6. Know all the problems. Agents and owners are not bound by "disclosure laws." You need to find out all you can about the problems in a property, development or neighborhood. Insist on an inspection by an independent inspector. Don't have a potential contractors do the inspection. If he thinks he has a big job coming he now has a vested interest in you purchasing this property.
7. Check it out yourself. Go back without your agent to talk to the people living in the neighborhood or development. Ask neighbors who have lived there a while about noise, water problems, sewer problems, and fault lines. Would they buy on this street again? Check out the developer's earlier projects. Were all homes sold quickly? What are the problems? How much did the monthly fees go up when the developer signed off?
7. Watch out for drama and promises. This is now a much slower market; some agents are anxious to make a sale. The house you love will probably not sell tonight or anytime soon. AND it probably will not double in value in the next few months. Be extra cautious of any agent who uses these tactics to get your signature on the dotted line. Remember that old saying, "if the deal is too good to be true?it probably is."
8. Location, Location, Location. Nearly every buyer here says they are buying the last house of their lives. Most sell those houses in a few years. Some want to build, some buy bigger or smaller houses, some leave the area and some rent. In this market, it can take months or years to sell your home, especially if you spent too much for it. Buy a house with resale in mind; be sure to have adequate parking, minimal stairs, is in a good location and widely desirable floor plan and amenities.
9. Don't leave your brains at the border. If a property doesn't have a clear deed or adequate water supply at the time of your offer, don't buy it. When you purchase a property without a deed or water, you own a property with little value and a lot of worry, stress, and continuing legal and logistical problems.
10. Trust or Deed? Your personal situation, family, age, marital status, health, and intentions can all affect the cost and viability of the two legal methods of owning property here. Don't accept a global recommendation from your agent. If you have any doubts or want clarification, demand an appointment with your Notary.
Remember that when you pay cash for a house at closing, you aren't building equity or creating a tax advantage. You are taking a big chunk from your retirement portfolio and you are probably making the largest cash purchase of your lifetime. Take your time. Rent first until you know the lay of the land here at Lake Chapala.
You'll find more information about purchasing real estate at Lake Chapala and about renting here at Lakeside in the archived issues of Living at Lake Chapala at http://www.mexico-insights.com/. and at the weekly Living at Lake Chapala seminars held every Thursday at 10 a.m. in the bar of La Nueva Posada in Ajijic.
Labels: buying real estate, Lake Chapala Real Estate
Judy King is publisher of Mexico Insights' Living at Lake Chapala, a monthly online magazine for people interested in Mexico's Lake Chapala region, in the state of Jalisco.
Judy, a 16-year resident of Ajijic on Lake Chapala's north shore, conducts weekly newcomer's seminars, shares her expertise about Mexico in her monthly online magazine, and in the "Mexico Lindo" column for the Lake Chapala Review.
Judy also is a speaker for local organizations and visiting tour groups about the Lakeside area and Mexican customs and holidays.
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