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The Buying Process
The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves plus your borrowing capacity. If you give a real estate agent some basic information about your available savings, income and current debt, they can refer you to lenders best qualified to help you.
Finding a Property
Once you know how much you can and want to invest, the next step is to find the properties that most nearly fit your needs. This is the time to choose a real estate agent, one who is also an AMPI/Multi-List Member. A Member of the Mexican Association of Real Estate Professionals (AMPI) and Multi-List Vallarta agrees to abide by a strict Code of Ethics. Our members have many resources to assist you in that search. Sometimes the property you are seeking is available, but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
Selecting a Property
Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent can assist you in the selection process by providing objective information about each property. Agents who are members have access to a variety of informational resources. Members can provide local community information on utilities, zoning, schools, etc. There are two things you’ll want to know: first, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
Negotiating
There are a myriad of negotiating factors, including, but not limited to price, financing terms, date of possession, and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and investigations of the property before you are about to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
Financing
As soon as you are reasonably sure the property is right for you, the process of obtaining financing, if necessary, begins. Your agent can help you in understanding different financing options and in identifying qualified lenders. This is something relatively new in Mexico, but financing is available.
Closing or Settlement
Finally, there is the closing, or settlement, as it is known in different parts of the world. Every area has its own unique customs. Your agent can be the best source of information regarding a swift and secure transaction. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly. This can actually be the most important part of the whole process and ensuring that your title is transferred properly.
It also involves establishing a trust account (or Fideicomiso, as it is known in Mexico) with a Mexican bank, which foreigners need to use in order to own real estate along the coast of Mexico. The trust system has been used for over 25 years in Mexico, offering a manner in which foreigners can actually obtain property in the country. Your broker can help explain this in more detail.
Property Management and Maintenance
If you purchased a property for investment purposes, your agent can be instrumental in the realization of your financial goals through a continued representation of your interests. All member agencies have “in-house” property rental programs featuring marketing, tenant screening, collections, automated payment services, maintenance programs, etc. that can be tailored to your specific needs.
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... published 2007-08-09 |
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