by Julie Kershner, REmexico Real Estate, Julie@CaboRealEstate.com
Congratulations, you’ve done your homework and you are ready to buy a home in paradise! Bienvenidos!
You have found the home of your dream, but how much should you pay? As you know, the value of a home is based on what a buyer is willing to pay and what a seller is willing to accept, so please consider the following when determining the amount of your offer.
Because Los Cabos has an active MLS system, and has had for nearly 20 years, obtaining market data is easy. Your agent will be able to access data showing recent sales of comparable properties, as well as providing information on market trends within Los Cabos.
To insure you are comparing this property with other comparable properties, take into consideration how similar the other comparables are. Age, condition, and location are very important aspects to consider. Other information helpful in determining an offer price is the length of time on the market and whether the home has been a vacation rental. Many times a home being used also as a vacation rental will not be available for showings, thereby extending the length of time on the market. This has very little to do with the appeal of the home, but it is hard to sell a home you cannot show.
If your dream property needs a face lift, consider the cost of the improvements compared to an available property with those improvements already included in the sales price.
Lastly, consider the seller’s situation. If the seller has recently made a price improvement (reduction), it indicates they are motivated to sell. Pricing a home for sale is somewhat subjective and owners generally have a price range in mind for the value of their home. This range is refined and adjusted based on feedback from buyers and agents. If the seller has made the necessary adjustments to the correct selling price, a lowball offer may be considered insulting.
After owning a home in Los Cabos for over 20 years, I can honestly say it was one of the best decisions of my life.