OK, if my math is right, using the low end comparable sale on the larger sized apt, $900 x 132 = would be $118,800 USD. I hit the ATM on the 24th and got $11.882 Mxn per $1 US. That would make the low end comp (not a bad example in a market still going down), about $1.4 million pesos. I think we will all agree that when a Mexican seller sets a price, no matter whether factual based or fantasy, that price is pretty much non negotialbe. This is way different than what we all experience throughout the US, generally speaking. I think I will stand by my original thought that the Se Vende unit is "significantly overpriced" at $400k over a recent comparable sale. $1.8m - $1.4m = $400k / $1.4m = 28.5%, assuming all this math is correct. I think Matkirk more or less agrees but not sure where he came up with the $1.1 - $1.3 million numbers. I don't think it is fair to suggest that this apt was "a comparablle sale" to others on the market at $100k US more than these units. By definition, a comparable sale, for appraising the market value, is based on homes, apts, land or whatever, most comparable to the subject property, in terms of proximity, size, condition, date of the prior sale and amenties, etc. So the best comps for Condo XYZ would be other apts in Condo XYZ. To value a unit for sale, one must consider the above conditions and make upward or downward adjustments to make the subject property and the comparable sale as comparable as possible. Example, in an upward market, a sales price a year ago would be increased to allow for inflation/mkt movements, etc. A completely furnished, renovated and remodeled comp, would be reduced in value as it is more valuable than an apt in need of painting, new A/C's, doors, windows or whatever. All that said, V has a beautiful apt in a very nice development, that, as he said, is very well located and convenient to so many places to shop, eat, etc and to public transportation. This post is not to disparage in any way his beautiful home. I just think, IMHO, that $1.8 is overpriced based on the market conditions and based on comps within this development. The bottom line, however, is that the real market value is what a seller would be willing to sell for and a buyer would be willing to pay. An overpriced seller and a not so well informed buyer make a higher value than comps might indiciate. A desperate seller and a buyer who is ready, willing and able to take advantage, yields a lower sales price. That is every buyer's dream - a motivated seller. Cheers,
Thanks for the nice words about our apartment, T.J. Seems you agree the unit on offer will not sell for the 1.8 million asking price. Just how low the seller will go remains to be seen. She's got the two recent sales of condos in the project to establish reasonable expectations. Those numbers surprised me, too, T.J., but I think I confused him by talking about price in USD/meter squared, as I mentioned in an earlier post. This comment may be based on a possible misreading of what I wrote, as follows: As the reader can see I was merely saying that, among the condos we'd seen, and liked, over our long hunt, the one we bought was not only less expensive, but more appealing. My reference to "comparables" were to the sales of the two units of the same size, in the same project: whether this is a technically correct use of the term, I cannot say, but perhaps my meaning was clear to those not so versed in real estate sales concepts. ____________________
It probably seems a little funny that I wouldn't want to have a car, but one of the things I've liked most about living abroad is the luxury of living without having to have one- a thing almost impossible in the U.S. As for how we get around and out of town, we go by bus and taxi, usually. It's not at all hard, or expensive to get to the places you mentioned without a car, although people have said Akumal doesn't lend itself to that: if we decide to visit, we'll just rent a car for a weekend, problem solved!
CancunScorpio: ADO has very cheap buses going to most anywhere (Puerto Morelos, Playa, Tulum, Merida, etc) Not sure if they go to Chichen, but I've noticed that opportunities for trips like that spring up from time to time. I've already been invited to go twice since I moved here. For Akumal, a friend told me you can take the ADO to Playa, then take another bus to Akumal. You have to walk a bit to get from the highway to the beach. I plan on trying that out within the next few months since I haven't been yet! Yes, not having a car can be a bit inconvenient on several occasions, but with all the money we save by not having one, it's totally worth it! We have tons of buses and taxis go by in our neighborhood, so it's actually pretty convenient 99% of the time. It's cheap, too... between carpooling, free bus passes from my office, and cheap taxis, Jorge and I only spend maybe $150 pesos a week on transportation. We could afford a car, but we feel like it would be more stressful to own one, with car payments, gas, maintenance, tenencia, finding a parking spot everywhere you go, and the infamous mordidas, not to mention the stress of just driving around Cancun with all the crazy drivers. I'm willing to have a bit more hassle on weekend excursions if it means saving hundreds of dollars a month and not having to drive with the crazy cancunenses haha If we ever have kids we might change our tune, but as a couple with no kids, we find public transportation and carpooling is the way to go.
Here's another condo being offered in my building. The price is negotiable. Departamento Residencial en Venta en Benito Juarez, Cancun - Departamentos en Venta Cancún Quintana Roo - ventasyrentas - www.RentasyVentas.com
