When expats put their homes up for sale, getting top dollar is always the #1 objective. But many factors go into the proper pricing of your home in Mexico. Today, I’d like to discuss the delicate balance of pricing to sell Mexican real estate.
Pricing factors include the location of the home, local market conditions, the age and condition of the home, any improvements you have made and the neighborhood. But living in Mexico and a tourist area, like Puerto Vallarta for example, there are other factors to consider. Here are a few:
- A listing price is derived from comps (comparable properties): recently sold, currently for sale and expired.
- If these comparables are current and are properties similar in size, features and amenities to yours, they can show a reliable price range.
- Active homes in your neighborhood tell you what the competing sellers hope to receive and how competitive you need to be. Does your property compare to the higher price range because of its features and amenities, or the lower price range?
- Expired or withdrawn properties can show you a price ceiling. If similar properties to yours fail to sell at that price, you can expect the same thing will happen to you.
- Solds show what buyers are willing to pay. This price range is meaningful and the one you should pay attention to because it is the proven one. Pricing above the sold price range is at your own risk. If you decide to go above the sold price range, your competition is the actives for sale.
- If you have different comparative market analyses (CMA) studies, find and compare where the same answers are found in the CMA. That should tell you what listing price range you should be in to be competitive.
- Any agent giving you an opinion of value should be able to explain why some property data is included and others are left out. This explanation gives you a much better perspective on what price range you need to use when you decide.
- Price per square foot or square meters is a point of reference. It may not take into account bad floor plans versus good floor plans, the number of bedrooms and baths, number of parking spaces or covered parking versus open.
- Days on the Market is an indicator of how fast properties sell or languish. Are there buyers out there at all? Are you competing with new construction? Are you near restaurants and shopping? Are there big negatives like noise or heavy traffic?
- Factors you cannot do much about include the reputation of the area, crime, deterioration of a neighborhood or a trend upwards. Unfortunately, your listed and selling price will be affected.
This article is based upon legal opinions, current practices and my personal experiences. I recommend that each potential buyer or seller conduct his/her own due diligence and review. 1