Bespoke Luxury & Exceptional Experiences in Los Cabos, Mexico

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A unique financing option that gives buyers and sellers the freedom to navigate the Los Cabos real estate market with flexibility and convenience, seller financing, is becoming more and more popular in real estate transactions in Mexico. 

In seller financing, which also goes by the name owner financing or vendor financing, the seller of the property provides the buyer with the finance directly, doing away with the requirement for a traditional bank or lending organization. We shall examine the nuances of seller financing in Mexico in this post, as well as its advantages and factors that buyers and sellers should take into account.

The Theory of Seller Financing

Seller financing is a special arrangement that enables buyers to purchase homes without having to rely on outside lenders.

Luxury sea front villa in Cabo

Instead, the seller serves as the buyer’s lender by giving them credit for a set length of time. 

This strategy offers several benefits for buyers who might have trouble getting typical bank loans because of their credit history, lack of documented financial records, or non-Mexican residency.

Benefits for Buyers

  • Access to Properties: Seller financing provides an opportunity for prospective buyers to access a wider range of properties in Mexico. With traditional bank loans, buyers often face strict eligibility criteria, which can limit their options. Seller financing opens up new avenues, enabling buyers to explore properties that may have been out of reach otherwise.
  • Streamlined Process: Unlike conventional financing methods that involve lengthy approval processes and extensive paperwork, seller financing simplifies the transaction process. Buyers can negotiate terms directly with the seller, allowing for greater flexibility and a faster closing process.
  • Reduced Fees and Costs: By bypassing the involvement of a financial institution, buyers can save on various fees typically associated with traditional loans, such as loan origination fees, appraisal costs, and certain closing costs. This can result in significant savings for the buyer.

Benefits for Sellers

  • Increased Marketability: Offering seller financing can make a property more attractive to potential buyers. By widening the pool of eligible buyers, sellers can potentially sell their property faster and at a higher price.
  • Ongoing Income: When sellers provide financing, they become the lender and receive monthly payments from the buyer, including interest. This steady income stream can be beneficial, particularly for sellers who may prefer regular payments rather than a lump-sum payment.
  • Competitive Advantage: In a competitive Los Cabos real estate market, offering seller financing can set a property apart from others and provide a unique selling point. This advantage can be particularly valuable when selling in a saturated market or when other comparable properties are struggling to find buyers.

Considerations for Buyers and Sellers

While seller financing offers notable benefits, it is important for both buyers and sellers to consider certain factors:

  • Thorough Due Diligence: Buyers should conduct a comprehensive assessment of the property and its title to ensure there are no legal or financial encumbrances. Similarly, sellers should evaluate the creditworthiness of the buyer and establish clear terms for repayment.
  • Negotiating Terms: Both parties must agree upon the interest rate, repayment period, down payment, and any other conditions of the financing arrangement. Seeking legal advice or working with a real estate professional experienced in seller financing can help ensure fair and favorable terms.
  • Legal Documentation: To protect the interests of both parties, it is crucial to draft a legally binding agreement that clearly outlines the terms and conditions of the seller financing arrangement. Consulting a qualified attorney is highly recommended to ensure compliance with Mexican real estate laws and regulations.

Los Cabos Real Estate Conclusion

Seller financing has emerged as a valuable alternative to traditional bank loans in the Mexican real estate market.

It offers flexibility, increased marketability, and cost savings for buyers, while sellers can leverage it as a competitive advantage and generate ongoing income.

However, as with any financial transaction, conducting thorough due diligence and seeking professional advice are essential to mitigate risks and ensure a successful seller financing arrangement.

By embracing this creative financing option, buyers and sellers in Mexico can unlock new possibilities and embark on mutually beneficial real estate transactions.

With more than 2,400 active listings on our MLS, we can simply filter out all the homes with seller financing options. Connect with me at any time if you want me to email you the list.

One of the most critical aspects of selling a property is setting the right price. Accurately pricing your property not only attracts potential buyers but also ensures a fair value for your investment. However, determining the optimal price point can be challenging. 

In this article, we will guide you through the process of pricing your property effectively to increase its market appeal and maximize your chances of a successful sale.

Research The Market

Before setting a price, it is essential to conduct thorough market research. Analyze the recent sales data of comparable properties in your area to gain insights into prevailing market trends. Look for properties with similar features, such as size, location, condition, and amenities. 

This research will help you establish a competitive price range for your property. Since the MLS system powers our local Cabo real estate market, your agent will have access to the most current and correct information.

Consider Market Conditions

Market conditions play a crucial role in pricing your property. Determine whether you are in a buyer’s market or a seller’s market. 

In a buyer’s market, where supply exceeds demand, pricing competitively becomes crucial to attract potential buyers. In a seller’s market, where demand exceeds supply, you may have more flexibility in setting a higher price. Stay updated on market trends and adjust your pricing strategy accordingly.

Assess Your Property's Unique Features

Evaluate your property objectively and identify its unique selling points.

Consider factors such as location, views, renovations, upgrades, and proximity to amenities like beaches, golf courses, marina, downtown centers and restaurants.

 

These distinctive features can influence your property’s value and justify a higher price point.

seating area at our VRBO Cabo San Lucas Villas

Highlight these advantages in your marketing materials to attract potential buyers.

Get a Professional Valuation

Engage the services of a professional appraiser in addition to your real estate agent to provide an accurate valuation of your property. Their expertise and market knowledge will help you determine a realistic price range. A professional valuation carries weight with potential buyers, making them more confident in your property’s price.

Conduct a Capital Gains Study

I strongly advise you to have your closing attorney complete a simple capital gains analysis before putting your property on the market so you can decide how much money you might generate from the sale. This will provide you with a different method of figuring out the price you feel most comfortable selling your home for. 

I would be pleased to recommend a few closing attorneys to you if you don’t already have one in mind.

Cost of Replacement (if applicable)

Another excellent method for figuring out the cost and value of the property is to calculate what it would cost to build it today. Inflation expenses, material availability, and changes in building costs must all be taken into account.

Factor in Cabo Real Estate Market Competitiveness

While it’s essential to be aware of recent sales prices, it’s equally crucial to assess your competition. Study similar properties currently listed in your area to gauge their asking prices. 

A comparative analysis will enable you to position your property competitively. If your property offers more value for a similar price, it will stand out to potential buyers.

Be Open to Negotiation

It’s important to recognize that buyers often negotiate prices. Set your initial asking price with some room for negotiation. This flexibility allows potential buyers to feel they have room to maneuver while still providing you with an opportunity to achieve your desired price.

Consider Pricing Strategies

Depending on your goals and market conditions, you can adopt different pricing strategies.

Setting a slightly lower price than your competition (undercutting) may attract more buyers and generate a sense of urgency. 

Alternatively, you can price your property slightly higher (premium pricing) if it offers unique features or if the market favors sellers. 

However, be cautious not to overprice your property, as it might deter potential buyers.

Regularly Review and Adjust

Real estate markets change, so regularly assess the situation of the market and modify your pricing approach as necessary. If there has been little interest in your property for a while, it can be important to reevaluate and possibly drop the price to spark fresh interest.

My Take

Pricing your property right is a crucial step towards a successful sale. By conducting thorough market research, considering your property’s unique features, and factoring in market conditions, you can set a competitive price that attracts potential buyers. 

Seek professional guidance when needed and be open to adjusting your pricing strategy as market conditions evolve. With a well-priced property, you enhance your chances of a timely sale while maximizing the value of your investment.


The information provided on this article does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.

Los Cabos, located in the southern tip of the Baja California Peninsula, is a popular tourist destination, known for its stunning beaches, picturesque desert landscapes, and high-end luxury resorts. The area comprises two cities, San Jose del Cabo and Cabo San Lucas, connected by a 20-mile long Tourist Corridor. The region offers a variety of neighborhoods that cater to different lifestyle preferences and budgets, making it an attractive destination for those looking to own real estate in Los Cabos.

San Jose del Cabo: This city, located at the eastern end of the Tourist Corridor, is known for its historic center, a charming mix of colonial-style buildings, art galleries, and fine dining restaurants. It offers a more relaxed, traditional Mexican lifestyle and is popular among expats and retirees. Neighborhoods such as El Encanto, Los Patios, and El Dorado are well-established communities with a variety of homes, including single-family homes, villas, and condos. Prices in these neighborhoods range from $200,000 to $2 million.

Cabo San Lucas: This city, located at the western end of the Tourist Corridor, is known for its vibrant nightlife, marinas, and water sports. It appeals to a younger, more active crowd and is popular among those looking for a more lively atmosphere. Neighborhoods such as Pedregal, Santa Carmela, and Quivira offer a range of properties, including hillside villas, golf course homes, and ocean-front properties. Prices in these neighborhoods range from $500,000 to $10 million.

Tourist Corridor: This 20-mile stretch of land connecting San Jose del Cabo and Cabo San Lucas is lined with luxury resorts, golf courses, and upscale residential communities. It offers a mix of both relaxation and entertainment, and is popular among those looking for a bit of both. Neighborhoods such as Cabo del Sol, Costa Palmas, and Puerto Los Cabos offer a variety of homes, including ocean-front villas, golf course homes, and condos. Prices in these neighborhoods range from $500,000 to $10 million.

East Cape: This area, located east of San Jose del Cabo, is known for its rugged desert landscapes and world-class surf spots. It offers a more remote and secluded lifestyle, and is popular among outdoor enthusiasts and water sports enthusiasts. Neighborhoods such as Los Barriles and Punta Colorada offer a range of properties, including beachfront homes, villas, and lots for those looking to build their own dream home. Prices in these neighborhoods range from $200,000 to $2 million.

Todos Santos: This charming town, located an hour north of Cabo San Lucas, offers a more laid-back, bohemian lifestyle and is known for its art community, local coffee shops, and organic farms. It appeals to those looking for a more traditional Mexican experience and is popular among artists and retirees. Neighborhoods such as El Pescadero and Los Cerritos offer a range of properties, including single-family homes, villas, and lots for those looking to build their own home. Prices in these neighborhoods range from $200,000 to $2 million.

When buying a home in Los Cabos, it is important to consider factors such as the proximity to the beach, access to amenities, and the overall quality of the neighborhood. Working with a reputable agent for real estate in Los Cabos and a local attorney is also recommended to ensure a smooth and stress-free transaction.

While Los Cabos offers a wide range of neighborhoods to choose from, each offering its own unique lifestyle and attractions, it is important to consider the local infrastructure and services when buying a home in Los Cabos. This includes access to quality healthcare, shopping and dining options, transportation, and security.

In terms of healthcare, Los Cabos offers a range of facilities, including private clinics, hospitals, and emergency services. The quality of healthcare in the area is generally considered to be good, with many expats and retirees choosing to make Los Cabos their home for this reason. However, it is important to research the options available in the specific neighborhood you are considering, as the quality and accessibility of healthcare services may vary.

When it comes to shopping and dining options, Los Cabos offers a wide range of options, from high-end luxury shopping centers to local markets and street vendors. In Cabo San Lucas, there are several large shopping centers and upscale restaurants, while in San Jose del Cabo, there are more local shops and traditional Mexican restaurants. The Tourist Corridor also offers a mix of both high-end and local options, making it a convenient location for those who want easy access to both.

Transportation in Los Cabos is generally good, with taxi and ride-sharing services widely available, as well as a local bus system. However, it is important to consider the distance from your home to the nearest transportation hub, as well as the quality of the roads, when choosing a neighborhood. In some more remote areas, such as the East Cape, transportation options may be more limited.

Finally, security is an important consideration when buying a home in Los Cabos. The area is generally considered safe, with low levels of crime and a strong police presence. However, it is always important to research the crime rates in the specific neighborhood you are considering, just as you would when purchasing anywhere and take steps to secure your home, such as installing a security system or hiring a security guard.

For those looking for a more serene and peaceful lifestyle, neighborhoods such as El Encanto, Los Patios, and El Dorado in San Jose del Cabo may be a good choice. These well-established communities offer a mix of single-family homes, villas, and condos, and are known for their relaxed, traditional Mexican atmosphere.

For those looking for a more active and vibrant lifestyle, neighborhoods such as Pedregal, Santa Carmela, and Quivira in Cabo San Lucas may be a good choice. These areas offer a range of properties, including hillside villas, golf course homes, and ocean-front properties, and are known for their lively atmosphere and access to water sports and nightlife.

For those looking for a mix of relaxation and entertainment, neighborhoods such as Cabo del Sol, Costa Palmas, and Puerto Los Cabos in the Tourist Corridor may be a good choice. These areas offer a variety of homes, including ocean-front villas, golf course homes, and condos, and are known for their stunning beaches and access to high-end amenities.

For those looking for a remote and secluded lifestyle, neighborhoods such as Los Barriles and Punta Colorada in the East Cape may be a good choice. These areas offer a range of properties, including beachfront homes, villas, and lots for those looking to build their own dream home, and are known for their rugged desert landscapes and world-class surf spots.
Finally, for those looking for a laid-back, bohemian lifestyle, the historic town of Todos Santos may be a good choice. This charming town is located about an hour north of Cabo San Lucas, and offers a range of properties, including traditional Mexican homes, beachfront properties, and charming bed-and-breakfasts. Todos Santos is known for its vibrant arts scene, relaxed atmosphere, and stunning natural beauty, making it a popular destination for artists, writers, and nature lovers.

Los Cabos offers a wide range of neighborhoods, each offering its own unique lifestyle and attractions. When buying a home in Los Cabos, it is important to consider your individual lifestyle preferences, budget, and the quality of local infrastructure and services. With the right research and preparation, purchasing a home in Los Cabos can be a rewarding and enjoyable experience. Whether you’re looking for a relaxed and peaceful lifestyle, a vibrant and active lifestyle, a mix of relaxation and entertainment, a remote and secluded lifestyle, or a laid-back and bohemian lifestyle, Los Cabos has something to offer everyone.

Mexico is a country rich in culture, history, and natural beauty. With its sunny beaches, warm climate, and affordable cost of living, it’s no wonder that so many people are interested in buying a house in Los Cabos. Whether you’re looking for a vacation home, a rental property, or a place to retire, there are many factors to consider before making a purchase.

One of the first things to consider when buying property in Mexico is the location. Mexico has a wide range of geography, from bustling cities to remote rural areas, so it’s important to choose a location that suits your lifestyle and needs. For example, if you’re looking for a beachfront property, you may want to consider cities like Cancun or Los Cabos, while if you’re looking for a quieter, more rural setting, you may want to look at areas in the Yucatan Peninsula or Guanajuato.

Once you have decided on a location, you’ll need to find a reputable real estate agent who specializes in the area. A good real estate agent will be able to guide you through the process of buying property in Mexico, and will be able to help you navigate the local real estate market. They will also be able to assist you with the legal and financial aspects of the purchase, such as obtaining a mortgage or dealing with Mexican banks.

When buying property in Mexico, it’s important to do your research and understand the local real estate market. The real estate market in Mexico can vary greatly from region to region, and it’s important to be aware of any trends or changes in the market before making a purchase. You’ll also want to consider the current state of the local economy, as well as any potential risks, such as crime or natural disasters.

Another important factor to consider when buying property in Mexico is the cost. While property in Mexico is generally much cheaper than in other countries, it’s still important to have a budget in mind and to make sure you’re not overspending. You’ll also want to factor in the cost of taxes, insurance, and maintenance, as well as any necessary repairs or renovations.

In conclusion, buying property in Mexico can be a great investment, but it’s important to do your research and be prepared. From choosing the right location to finding a reputable real estate agent, there are many factors to consider when making a purchase. By taking your time and thoroughly researching the local real estate market, you can ensure that you’re making a smart investment that will provide you with years of enjoyment and satisfaction.

If you’re interested in buying real estate in Los Cabos, there are a few steps you should follow:

– Determine your budget and what type of property you’re interested in (e.g. a home, condo, or land).
– Hire a reputable real estate agent who specializes in the Los Cabos area.
– Research the different neighborhoods and areas in Los Cabos to determine where you would like to buy.
– Look at properties that fit your criteria and visit them in person if possible.
– Get pre-approved for a mortgage, if applicable.
– Once you have found a property you’re interested in, make an offer through your agent.
– Hire a property inspector to ensure the property is in good condition.
– Close the deal and complete any necessary paperwork.

It’s important to thoroughly research the Los Cabos real estate market and seek the advice of professionals before making a purchase to ensure a smooth and successful transaction.

Here are some tips for selecting a luxury realtor in Mexico:
– Look for experience and expertise: Choose a realtor who has a track record of successfully buying and selling luxury properties in Mexico and has a deep understanding of the local market.
– Ask for references: Contact past clients and ask about their experience with the realtor.
– Check their network: A good luxury realtor should have a network of trusted professionals in finance, legal, and construction, which can help you with any additional needs during the buying process.
– Look for a good fit: Choose a realtor who you feel comfortable with and who you can trust.
– Research their marketing strategy: Make sure the realtor has are strong online and offline presence, and that they use high-quality marketing materials to showcase the properties they are selling.
– Seek recommendations: Ask friends, family, and colleagues if they have any recommendations for a luxury realtor in Mexico.
– Check their credentials: Make sure the realtor is licensed and belongs to a professional organization such as the National Association of Realtors.

By following these tips, you can increase your chances of finding a top-notch luxury realtor in Mexico who will help you make the right purchase. Feel free to contact one of our esteemed local advisors and give them the opportunity to earn your business and help you find a forever Cabo home.

Taking time out of a busy schedule to visit Los Cabos is a good idea any time of year. When travelers are looking to vacation in style, Los Cabos has the scenery, upscale fun, activities, and attractions that make for an unforgettable stay. With all of the activity, many owners find themselves asking, “Is now a good time to sell in Cabo.”

While a visit here is always a thrill no matter what your interests may be, those who are looking to make a more permanent investment will find that in 2023, the Cabo real estate market is primed for potential. Sellers in particular will be happy to discover that now is an ideal time to upgrade their current Cabo residence for something that elevates their year-round living and/or makes for a breathtaking vacation home.

Luxury Buyers Propel the Market to New Heights

While the global health crisis of 2020 stalled the real estate market just about everywhere for a period of time, in Los Cabos, tourism is back and stronger than ever in 2023. By the end of 2022, Forbes was highlighting Los Cabos, Mexico as one of the biggest second home markets in all of North America. This trend has seen many vacationers transition to buyers as they look for their piece of paradise to enjoy on a more permanent basis. For sellers looking to profit in Cabo, this world-class destination is offering up a strong and exciting market to be a part of as interested buyer numbers continue to grow. The team at CBRE Hotels put together a report looking specifically at Los Cabo’s market growth over the last five years and found the area is experiencing an annual growth rate of nearly 6% overall. For sellers, this is even better news.

The luxury real estate in Los Cabos provides an even more exciting prospect for those looking to sell as the most exclusive inventory remains relatively low. This provides sellers with a greater amount of control over their selling price and how they choose to accept property offers. Overall, sellers are seeing increased interest in luxury properties from American and Canadian buyers. With new direct flights between Los Cabos and Europe, the expectation is that sellers will be seeing an influx of European buyer interest in the near future as well.

Market Factors to Consider in 2023

In Los Cabos, those looking to sell are still seeing the high-end market range as listing above $1 million. At the end of 2022, resale was accounting for around 90% of property sales in Los Cabos with 30% to 40% of all residential sales falling within the high-end market category. From the U.S., there are a high number of buyers hailing from California and Texas, while market interest is also being noted as primarily coming from Chicago, New York, and Mexico City.

According to the Cabo Real Estate Services 2023 first-quarter market report, the market continues to flourish for sellers. In quarter one, the Los Cabos real estate market saw over $500 million in sales as opposed to quarter four in 2022. This puts sales volumes up by 48% and a total of 545 houses and condos sold within the first quarter timeframe. The most lucrative price point for sellers is holding steady between $2 million and $5 million listings. Quarter one inventory remained steady as well and real estate agents were seeing existing properties moving briskly. Overall market direction is noted as strong in Los Cabos in 2023, particularly for existing properties as opposed to new construction.

When You’re Ready to Sell, Partner with Cabo Platinum

Those who own homes in Los Cabos know just how appealing this sunny and one-of-a-kind destination can be year-round. That said, there’s no reason not to upgrade when you’re looking for something new in Los Cabos. Whether you’re looking forward to a new view, are hoping to swap neighborhoods, or just want to be closer to places you love to spend time, the team at Cabo Platinum is always here to help.

Our Cabo real estate services are world-class, and we know the Los Cabos real estate market fluently. We help homeowners looking to sell market and price their homes competitively so their new journey can get started faster than ever. Our guidance and assistance with financial planning can make all the difference when it comes to creating a real estate transaction that’s smooth and streamlined. We know how to navigate market fluctuations and help place your home in front of the eyes of buyers who are looking to close quickly. We’re also ready and waiting to help you find your new home once your current residence is ready to hit the market.

Luxury real estate is our passion and our area of expertise. When you’re looking to learn more about how we can help you sell your home and find the next residence of your dreams, simply reach out to Cabo Platinum. Our team of expert real estate advisors can’t wait to hear from you!

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