If you are thinking about selling you property in Puerto Vallarta, you may have some of these common questions.
How do I choose the right Realtor?
One of the most crucial decisions in selling your property is choosing the right Realtor. As in Mexico, by law, somebody selling property does not have to be licensed, it is very important that you make sure the Realtor you choose is a Licensed Professional by the AMPI Organization, which is the Mexican Association of Professional Real Estate Agents. By choosing a Licensed Realtor, you are ensuring that the professional working for you has the correct amount of education, understands the laws pertaining to Real Estate in Mexico, is able to write up a proper contract for the listing of your property and know how to properly evaluate the true value of your property.
Who holds the Title for my property?
Most foreign owners own the property under a Trust or Fideicomiso. It is important to know which bank holds the Trust, as this will play a big part as to how long the closing process may take. There are some banks that are very efficient and have all their records up to date, therefore the transfer of title is easy and efficient, and the closing may take 6 to 8 weeks. But, if the Trust is held with one of the banks that do not have their act together, then it could take several months for the sale to go through. The reason for the timing is that the bank has to approve the cancellation or the transfer of your Trust. We at Exclusive Realtors can investigate the facts quickly and give you an approximate time from acceptance of an offer to the closing of the sale.
Will I have Capital Gains Taxes to pay?
Unlike other countries, in Mexico, the Notario that closes on the sale has the duty to immediately keep the payment for taxes out of the sale proceeds. Therefore, the day of the closing, the Notario will keep the taxes, and you will get the remainder of your money. Therefore, it is important to work on your tax strategy while listing the property, so there are no huge surprises at closing. We at Exclusive Realtors have an experienced Tax Attorney that is able to implement tax strategies that fall completely within Mexican law, but that are able to reduce your tax liability considerably at the time of sale. We have helped many people reduce their tax liability from the sale of their property. We will discuss this in depth in a future article.
What are some strategies to sell my Property?
- Pricing your property is of paramount importance. If the property is not correctly priced, it will either not sell in a timely manner, or you may not get as much money as you could have. We at Exclusive Realtors have many years’ experience in Marketing Analysis, in which we can look at the history of the area as well as an insider perspective on market information which is not readily available to the public. Therefore, we can price your property at the right amount, so you get as much as possible, and get your property sold in a timely manner.
- Think about offering non-price incentives such as new appliances, a furniture allowance or even a car you may have in PV that you will not be taking out of country.
- What is your Motivation to Sell, are you selling because you need the money or are you selling because you don’t come down to PV as much as you used to and would rather have the capital for other investments. This information will help in deciding how to best price your property.
- If you need to sell soon, then a low price is the easiest way to sell your property fast. Sometimes when a property is priced on the low end of the spectrum, several offers come in that may raise the price closer to market value.
When should I sell to maximize the price?
As most people are aware of, the high season in Vallarta is from November to March. The number of visitors and potential buyers grow exponentially during these months. Therefore, having your property listed between September and October is the best time to make sure everything is properly listed on the MLS system. Selling your property during high season also ensures that the maximum price is attained for your property.
Starting the process of listing your property is best one to two months before you want the property to be officially listed on the MLS system, therefore if you want your property to be officially listed my October, it would be best to get the process started around August or September at the latest.
We at Exclusive Realtors are ready and able to start working with you and provide you with a free Market Analysis that will give you a good indication as to how much you can sell your property for.
What should I include with the sale?
We recommend making up a list of what will and what will not be included in the sale of your property. In Puerto Vallarta, it is common practice to include furniture, appliances, dishes etc., as it would be difficult and costly to ship these belongings out of country. Many buyers are looking for a turnkey rental investment, and would prefer to buy it fully furnished, with everything renters will need. Nevertheless, you may have some art or other pieces with sentimental value that you will want to take home with you. It is important to have a list ready to be included in the selling contract, so the buyers are fully aware of the items that will not be included with the property. You may also reserve the right to sell unfurnished.
We at Exclusive Realtors are a licensed Real Estate Agency in Puerto Vallarta and the State of Jalisco. We have been in business for 6 years, and I Hector Merino am the Broker of Record. I have been featured on the popular show “Mexico Life” on the HGTV Channel, which indicates that I have been property vetted as an honest and successful Realtor with a good Track Record.