A Complete Home Buyer’s Checklist

If you’ve vacationed in Cabo San Lucas, known colloquially as Cabo, you might wonder what it’s like to own a home in Baja California Sur. Whether it would be your primary residence or a vacation getaway, Americans can own homes in this tropical paradise.

The process of buying Mexican beach homes for sale is a bit different than it is for buying homes in the United States. However, the result is just what you’d imagine. You’ll have the pleasure of living in a sun-splashed city at the tip of Baja California that offers world-class beaches, golf courses, restaurants and bars, and shopping. There are also many other activities, such as mountain biking, hiking, and horseback riding.

In the beachfront from Cabo San Lucas to San Jose del Cabo (the other Cabo), homes tend to range from less than $1 million to $10 million. There are many styles of homes available, including beachfront mansions, villas, condos, and homes in golf course communities. There is something for everybody, and the region attracts people with many different interests and tastes in homes.

The search for homes for sale in places like Palmilla Los Cabos, Puerto Los Cabos, San Jose del Cabo, and Cabo San Lucas begins with hiring an experienced real estate agent who is highly knowledgeable about both the market and the process of purchasing a home in Mexico. Buyers should never try to navigate the process alone, as they could make costly mistakes if unfamiliar with the rules and regulations of purchasing homes in Cabo. A talented agent will be happy to assist you in finding properties that match up with your dreams and then negotiate a fair price.

To find the best agent, get references from friends and associates who have recently purchased properties in Cabo. If they were happy with the agent’s performance, strongly consider hiring that person. You can also research agents by visiting their websites, reading satisfied clients' testimonials, and checking their sales stats. You must look for an agent you can trust since you will rely heavily on them for advice.

If you’ve visited Cabo before on vacation, you’ll have a head start finding a home. You probably have a favorite neighborhood or two and can begin your search by perusing online listings. Make sure that the community you choose is right for you since this will become your new home, or at least your home away from home. The last thing you want is to settle into a neighborhood that isn’t what you were looking for. In addition, having an agent in Cabo who knows the ins and outs of each neighborhood will increase your chances of finding your dream home.

While it is perfectly legal for Americans to buy Cabo homes for sale, there are significant differences that you need to understand before you even begin house hunting. Your agent will be happy to explain this to you.

More than 100 years ago, Mexico established a Zona Restringida, or restricted zone, that covers properties within 31 miles of the coastline and within 62 miles of an international land border. Foreigners can own homes in their name outside of the zone, just like Mexican citizens. Inside the zone, which includes houses for sale in Palmilla Cabo, non-citizens cannot own property in their name but are allowed to use a trust to buy the property. This trust is known as a fideicomiso. If you ever sell your property, the good news is that it can be easily transferred.

When you are ready to buy a home in Cabo, the Department of Foreign Affairs, located in Mexico City, issues a permit to the Mexican bank of your choice. That bank will then act as the trustee, and the buyer is the beneficiary. The bank does not own the property. It simply serves as the trustee that holds the trust.

Owners are free to live in the property and even rent it out. They can remodel it or add to it. If they decide to sell, they can ask the bank to transfer the rights to the new buyer or to bequeath it as an inheritance. Owners can retain control long-term, as there is an initial 50-year term for the trust, which can be renewed indefinitely for additional 50-year terms.

One of the benefits of working with an experienced Cabo San Lucas real estate agent is that they will get to know your criteria for Cabo real estate and narrow down ideal properties that fit the bill. You will want to view the properties in person to ensure they are the right ones for you and your lifestyle needs. Your agent will help you understand the cost of living and other expenses associated with the home, as well as the potential resale value.

If you want a vacation home, make sure it is in a neighborhood or development popular with vacationers. This way, you will be assured of a steady stream of renters for when you are not using it. Also, ensure the home has the kind of features and amenities favored by well-to-do renters, such as smart technology or luxury furnishings, who are willing to pay a premium to lease it.

Now it’s time to make an offer on a house in Cabo. Your agent will help you develop an offer price and terms that will give you the best chance of getting it accepted over other offers. If negotiations are necessary, your agent has plenty of experience that will pay off and help secure your dream home.

After the offer is put in and you’re in the end stages of closing on a home, it’s time for the home inspection and the appraisal. These are necessary steps when buying, so you can ensure there are no problems with the home and that the price you have agreed to pay is fair and will be acceptable to your lender. Make sure you keep written records of everything agreed upon to ensure you don’t receive any potential blowback and that if something comes up in your inspection, you’re not stuck in a deal you want to renegotiate or back out of. Your agent will ensure that all necessary documents are taken care of and will guide you through the closing.

These are the significant steps to consider when purchasing Cabo real estate. When you’re ready to start looking for beach homes for sale, let Los Cabos native Emily Rice put her incredible local knowledge to work for you.