Real Estate Yes, But not Like Back Home

Being from Colombia but having lived in the US for the last19 years has given me a unique view on the real estate market in Mexico from the perspective of a Spanish speaking foreigner.

About 6 years ago I fell in love with Tulum and vowed to return to live in this paradise for good. Since I was fluent in Spanish, or so I thought, I felt comfortable and confident enough that there would be no actual transitional period from New York to Tulum. I felt that my love and determination would help me overcome all difficulties… and it did. But the lessons learnt are important enough for me to want to share, since I believe that those who are thinking of buying property here, whether to live or to expand their portfolios, will benefit from them. Resilience, or once ability to bounce back from the immediate set backs encountered in Tulum, is of the greatest importance.

One of my first findings, and shocking realizations, regarding real estate not only in Tulum, but in all of Mexico, is that anyone can sell real estate without need for any sort of formal education. There is an organization know as AMPI (Asociacion Mexicana de Profesionales Inmobiliarios) that for several years has been working with the government to pass a law that would make it mandatory for all involved in real estate transactions to become certified in order to legally sell properties, but this has not happened yet, and there is still no set date for when this will happen. For now then, the term “real estate professional” must be used loosely, but this is not to say that although you can ask the cab driver taking you to the beach to help you buy property, that there aren’t a great many serious and professional agents out there continuously looking to further their knowledge in their profession in order to provide better service. In fact, the lesson here is that when making the decision between going with the cab driver –not that there might not be some good ones out there- trying to save money on commissions, and going into an established real estate office, odds are that the reps in the office will be, for obvious reasons, more inclined to have taken, or be taking courses in the subject, thus being a much better choice even if it were to cost a little more.

For anyone who’s purchased a home before, the reasons to go with a real estate professional are immediately obvious, and for those whom have yet to experience this wonderful roller coaster of emotions, it should be an even easier decision to make, since they must assume that their lack of experience is not only a disadvantage in their own country, but imagine where they might stand in foreign ground. Even well versed real estate buyers, from the US for instance, will find the terminology confusing. For instance, a notary in the US, is an office without much power, generally one would use it to authenticate documents, but here in Mexico a notary public is not only a very import step in the process, but an indispensible one, since without it the transaction would not be valid.

For anyone, foreign or national, looking to purchase property in Mexico, one of their first conversations with a sales associate should be regarding the required steps to purchase and which of these steps will the sales person be present for. The buyer must not only be concerned about possible language barriers, but by having a sales associate from the region by their side will absolutely aid in facilitating the purchase at the different stages of the process. Some of which entail conversations and negotiations with other agents/offices, the seller, possibly developers, bank executives, accountants, lawyers, and notaries just to name a few. With this in mind, it becomes easier to see how the cab driver, or the great new local friend, might not be the best choice.

It is rare to find, but definitely possible, a stand alone real estate professional who can provide effective counseling to all parties involved –not just the buyer- in a real estate transaction. That’s why going into a professional real estate office not only betters your chances of not loosing your money, but of avoiding future hurdles after the purchase. It is key that once you find the property that you like, your next question be whether a thorough search and investigation has been made of all the documentation provided by the seller to ensure their authenticity. Verifying that the title to your soon to be property is still up to date -perhaps the neighbor with which it borders has moved his fence a few feet into yours- should be the job of the sales associate and not that of the lawyer or the notary. Do not fall into this situation. If want to ensure that your documents are correct, the answer is easy to get by hiring topographer and having him physically go to the property and verify the measurements, a process that will only take a few days. If you wait to do this until after you’ve bought the property, you may be loosing some of your brand new slice of paradise.

Always remember that it is in the best interest of your sales associate to walk you through the entire purchase process, from beginning to end, since a true professional will not only be interested in repeat business but also in referral business. So if a sales associate wants to leave you too soon, it may be a sign that something is wrong.

The lesson here then is, even if you speak Spanish, and are a native of Mexico, please remember that in this emerging market many things work differently, but the one thing that remains the same is, if the sales associate you’re speaking with doesn’t feel right, ask someone else.

So for now the best advise I can give anyone regarding whom to purchase from, is to take your time, become as well versed as possible in the subject, visit more than one real estate office, and above all follow your gut feeling, because if it doesn’t feel right, it most likely isn’t.