The Cabo market draws buyers primarily from the USA and Canada. With flights having expanded it’s possible for buyers to visit regardless of their geographical location. However, a US or Canadian citizen remains the top two buyers for our area. The Baja weather is the biggest draw with low humidity and 350+ days a year of sunshine.
98% of Real Estate in Los Cabos is sold through local MLS agents. The internet is where the majority of buyers begin searching ideas about buying a vacation property. A typical Vacation Property buyer visits an area up to 7 times before making a decision but the internet makes it even easier for a buyer to gain knowledge on the area. Buying will vary based on finances, age, children, retirement, work commitments. Many choose to rent to find out what the lifestyle is really like outside of a week vacation at a hotel. Buyers research to narrow down areas of sun filled destinations based on weather patterns, demographics, travel distance, cost of properties and living expenses before settling in on choosing a specific area to purchase in.
Many vacation in Los Cabos for years before making a decision that it is time to purchase. While other’s have a plan for purchasing now & how they will use the property. Research on the rental market is also important to buyers who may be ready to buy and take advantage of market prices but may not be ready to use and enjoy the property themselves.
Most buyers begin by determining what part of Los Cabos best suits their vacation or retirement lifestyle. Whether they are drawn to Cabo San Lucas and love the activity of the downtown and beach or prefer laid back San Jose. Perhaps the seclusion of the East Cape. They determine if they are a land to build buyer, or if a condo or single-family home is more suitable. Some prefer fixer uppers which often can be purchased for less but then it takes time to make it move in ready along with research of builders and tradesmen to use for their project.
Buyers are entering the market at different price point levels. They may not be buying their absolute dream property on the first round. Maybe entry level for their income level and then over time buy and sell, upgrade or build.
Most buyers have a plan for purchasing that is worked at over time while they continue to tour properties each trip with planning for timing, income, retirement, kids, how they will plan the funding of their purchase and when they will actually have that money in hand ready to make an offer, and that plan will take time to be put into action. Others have their down payment and seeking viable 2nd home mortgage options.
Sellers often wonder why they are getting tours but not getting any offers. This may be based on the current market conditions whether it’s a buyer or sellers market, what the current demand is.
In Los Cabos a listing agent is required to show the property when requested by another Multi List Service agent regardless of the buyers qualifications. The buyers may be in varying stages of their buying process. They may have just arrived in Los Cabos for the first time and are intrigued about the area and wondering what it might be like to own property here. There are agents who will put that client into their car and get listing agents to put keys in the door’s all the while hoping that they are interested enough to make an offer. It’s possible the buyer has a property on the market in another country waiting for it to sell so that they can buy in Los Cabos, they may be waiting on an inheritance, or they need to cash in on investments, stocks or bonds.
Buyers typically spend only a portion of their time in Los Cabos looking at property, it’s important to get to the beach as well and enjoy vacation. Depending on how often they visit the area will determine how long it might take to get to the point of making an offer and finding that perfect fit.
A great buyer agent will take the time to research the buyer’s interests, work on narrowing down area’s first, determine what kind of property is the best fit and how they plan to use the property, educate them on financing, find out the list of must haves and dislikes and find out the who what where and when of the all-important money side of the process, and then make a plan around that information for touring property.
A good sellers agent is going to have the property ready for the buyer and agents arrival and then follow up with the agent for feedback to provide to the seller, both positive and negative as well as finding out where in the buying process the buyer is at and then planning follow up with the agent if the property remained of interest after the tour. There is much more to being a listing agent than simply showing the property. Your listing agent should have provided you with a current market analysis along with the area and neighborhood statistics of time frame you can expect your property to be on the market as well as giving you a low median to high listing price range. You’ll need to determine where your place in that range is going to be.
There is a piece of paradise to be found in Los Cabos that suits everyone’s wish list and budget.
