I have located a property in downtown in SM38 for sale and have toured the property - a 2 story with 3 bedrooms, 2 1/2 baths, maids quarters w/ full bath, diningroom and 2 livingrooms with full kitchen and a walled-in backyard. The property appers to be in very good condition and built about 17 yrs ago. Original owner still owns the home. It has been on the market for over 9 months now..!! The asking price is: 1.5 million Pesos. My question is that I am unfamiliar with local real estate values and how does one determine whether a property is overvalued - undervalued or a good value. ? I know that the 3 most important tHings to consider are LOCATION, LOCATION and LOCATION... Outside of that....any thoughts on this would be appreciated. Thanks in advance
Which street is it on? If it's on the dead end one across from the park it's not too far off. If it's the non-dead end street across from the condos then it is pretty high. If it's on that street between then it's not as high. (Don't buy on a through street here, it's a mistake imho.) AMPI has a map of Cancun with the price per square meter that things are selling for. If you have an AMPI agent involved then you can get access to that map. Carmen Bianca is a reputable AMPI agent, let me know if you want her contact info. If you comb the public registry for past sales in that area you can find out the prices yourself, but good luck with that. The problem here is that props are often priced too high, sellers don't know how to evaluate the market any better than you do. And this economy makes people more greedy than they might be in a different economy. If that house has been on the market for 9 months the sellers might be anxious, though it's normal for a house like that to take a year to sell here. Best advice, don't rush. It's a buyer's market. There's a nice looking rental on the street with the park, you might rent first and feel out the area before you buy.
I agree with virtually everything RG has already said. I strongly agree with the suggestion to rent and not buy--at least until you get accustomed to Cancun and the area. You don't want to go through all of the buying process including the bank trust and then find out later you don't want to live in that area. And putting it in someone else's name is not a good idea. I would also suggest renting or buying in a gated community or project with security. I believe the area you mention is the same one you mentioned before. Have you looked at other areas and options? SM 38 is also right across from the ombligo verde where--possibly--they will be building the new City Hall and park. For evaluation purposes you can also ask for a copy of the last property tax bill (predial) as it will have the official evaluation on it--not that it is accurate but it will tell you something and also let you know how much you will be paying in the future. You also need to get a lawyer to handle any transaction in my opinion to check documents, title and tax implications. But it is so important in my mind that I will repeat: Don't buy right now! Rent and wait. It is a buyer's market but the fact that most sellers are uninformed, greedy and don't have a clue about values makes that almost a moot point! I have seen people ask ridiculous prices for years and let properties go downhill just because they were not willing to drop the price a little. The "Win/win" attitude is not common here. Wait for an expat to sell or someone who is willing to negotiate. Caveat emptor.
I agree in many aspects with both Jim in Cancun & RG....and have seen the properties on Urano and on Neptuno....I have been staying at my friends' home for over 15 years now and am very familiar with the neighborhood.....and also aware that the new city hall MAY be built on that vacant lot.... As I have no children and will be occupying the house by myself.....the fact that it may be on a throughway street does not bother me..! The location is ideal for me. My question again....as the property is on Neptuno....and there are others for sale on the same street.....Outside of looking at the tax bill which never represents the actual market value..RG had the suggestion to check with AMPI...which I am not familiar with...and does this agency have a website..?? In plain English, I just do NOT want to overpay and end up getting "screwed"......!!
I think RiverGirl's suggestion about a dead-end street was more to do with security than anything else.. it also helps cut down on traffic noise. 1.5 million pesos for what you described doesn't sound too far off, but just as in the States you always make an offer first and see what they come back at... as Jim said however, many people here would rather their property rot than accept 1 pesos less than the asking price which may explain why that house has been on the market for 9 month, however you can still make a offer (ie:1 million) and see what they say. DEFINITELY get a lawyer, preferably one that someone here can recommend ( I don't seem to know any good ones.. sorry), as you don't want to find out later that there is a problem. Places can be had for less or much more depending on where you go, I too agree that you should spend a few months "test renting" an area before dropping big money on a place. There is also a rumor that the trust requirement might be going away soon as Jim mentioned in another thread.. so it may pay to hold off a little while and see what happens there. There are plenty of places to rent meanwhile if you're in a hurry to make the move.
The predial may or may not be close to the actual market value. But if you, as a foreigner, come in and get a Fideicomiso on the property you will likely end up with your own predial showing the value you actually paid. So you will end up paying more property taxes than the previous owner did. The property value amount that ends up on your predial can sort of be negotiated with the notary, sort of, but I'm not sure how flexible the bank holding the Fideicomiso will be on that value. You need legal advice on that point. Fernando Doblado is a fully bilingual attorney who does real estate work here. He was educated in the US. The rotten web site is here: Lawyers and Attorneys Offering Personal and Corporate Legal Advice in Cancun and Mexico City, Alanis Serrano and Doblado (rotten because it doesn't have contact info on it, only has a contact form) Fernando's email is fdr[at]asd.com.mx Address is: Edificio Popol-Na, Avenida Nader No. 28-1, office is on the second floor. I recommend that you pay your real estate attorney to do a study of the title history of your property. It's very difficult and expensive to get title insurance here. But if you talk to the title insurance companies who do work here you find out that what they do is get a local attorney to study the title history of the property in question, then they insure based on that study. So you can go around them and get the study done yourself. If the house is only 17 years old it won't have much history, so this should be an easy thing to do. AMPI is the local real estate association. Here's their web site: Quienes somos - AMPI - ASOCIACIÓN MEXICANA DE PROFESIONALES INMOBILIARIOS, A.C. It has a property search on it, though I don't think the member agents always put all their listings into it. Carmen Bianca is an AMPI member agent, she's lived here over 25 years, she's fully bilingual, she's knows more about this stuff than anyone I know. Her email is carmenbianca[at]hotmail.com. You can also go to a bank here and pay for an Avaluo, a valuation or an appraisal. We had our house appraised last year and it was cheap, like maybe $1500 pesos or so. I've been through a number of houses for sale in SM38. And I live nearby. I walk my dogs in the park on Saturno everyday. I know the area. The houses on Saturno and Urano are much safer and have less traffic going by them than the houses on Neptuno. And they are worth more. A house on Saturno is likely worth 1.3 million if it's in good shape. That park is really nice. Urano would be a similar price, but a little lower (no park, higher density). I would not pay over 1.1 million for a house on Neptuno, but I would not buy on Neptuno. With the high density of the apartments there and the through street you will have traffic there at all hours. And if/when the city builds the City Hall over there you will see even more traffic on Neptuno. More traffic = more crime Imho, you want a dead end street or a private gated community. If you have a dead end street you can get together with the neighbors to pay a guard. But it's impossible to guard a through street. And if you'd seen the chaos after Wilma here I think you would very much want to be able to protect your street. I think that you want to buy the house close to your friends, on the same street as them and that part of your reasoning is emotional. It's fine to make an emotional purchase, if you know you are doing that. But in my long experience with that neighborhood I would recommend buying over one or two blocks and then walking to visit your friends. Or you can meet them at the pool in between. Remember that if you overpay for a house on Neptuno and then decide you want to sell it you will have to wait a long, long time to find someone else to overpay for that house. It is a buyer's market. That house is not going anywhere. One year is a normal amount of time to sell a house in this market. And other houses, on quieter streets will sell before that one sells. You can wait out that seller. Remember that sellers here don't always negotiate the way sellers in the US will. In the US you might make a low offer and expect a counter offer. Here that might work, or you might make a low offer and be told to get lost. It's weird, actually, that Mexicans, who bargain over fruit at a stand will not always bargain over a house, but many won't. If you have a real estate agent helping you with the negotiation it will help with this stuff, an agent might be able to make a deal happen that would otherwise fall apart. There's a cute house for rent on Saturno, it's got a gate and fresh paint and it's close to one of the pools (that street has two public swimming pools on it). Go look at it, consider renting over there to see how it feels. You will be pleasantly surprised at how much more tranquil that street is than Neptuno. I've long thought that Saturno is a hidden gem of a street in this town. The density is really low, the pavement is brand new, the park is well maintained. It's close to everything but is quiet. It's about as ideal a spot as you will find in this town without living in a gated community, imho.
With the "rumor" that a new city hall may be built on the treed and trashed big lot next to Home Depot on Kabah.....I would think that this would be a great improvement over what exists now.....a breeding ground for bugs, mosquitoes, trash and whatever....AND with a city hall at that location...and more traffic.....there should also be more local police in the area...!! Possibly for more crime and traffic control.. so.... what do you think improves this area - a new city hall....or a trashed vacant lot......???
Best way to figure out real estate values here is to forget every method you have used before. I think that most sellers work out their square meterage of land, then add ten square meters and round up. Then they figure out the area of construction. Note construction can been air-conditioned space, a place where there is cement or a heavy plant pot that they intend to leave and everything in-between. Then think of a number between 1 and 20 million pesos add another 6 or 10 percent (incase commissions are payable). That's a good starting price. If the house doesn't sell, increase the starting price to attract richer buyers. Keep in mind neighboring properties can grow another floor over a Sunday afternoon. Empty lots that you would expect to be a house like yours can become a tower, business or anything else. In the end just make sure you like a property and would enjoy living in it. Invent your own offer that makes you comfortable. If the seller declines - move onto the next, there are plenty to chose from right now.
It's only trashed BECAUSE OF the mayor and his big plan. A few years back it wasn't like this. I am absolutely against the destruction of natural areas for more construction, I can't believe that you think cement is better than green. This was one of the last green areas in Cancun and now it's destroyed. And as someone who lives in the immediate area, I am not looking forward to the increased traffic, not just cars, but people on foot, checking out the neighbourhood to see who's ripe for robbing, throwing their trash around, spreading more graffiti. This is just a bad idea overall.
If you walk around the streets close to the present site of the City Hall you see broken sidewalks, city buildings missing windows and garbage. If the city can't preserve and take care of the City Hall it has now, why will it do a better job with a new one? And if they move the city offices what will happen to downtown Cancun? Will it become more neglected? The proposed City Hall site is across Kabah from SM38, not on the vacant lot up from Home Depot. As far as I know that lot in SM38 is not part of the city's plan, yet anyway. So you'll just have to put up with the iguanas and coatis and parrots and other animals that live there (yes, I've walked through that lot many times, I know what's there...I even rescued a kitten from that lot once.)
