As we all get closer to retirement, we frequently fantasize about one day owning a piece of paradise, perhaps in Florida, Arizona, Hawaii, or Puerto Vallarta; a place with a climate that encourages relaxation and year-round enjoyment of life.
Puerto Vallarta, located on the Mexican Riviera along the Pacific Ocean at the same latitude as Hawaii but six hours closer and with a lower cost of living, has been chosen by more than 50,000 retirees as their primary or part-time retirement destination. In Vallarta, there are breathtaking ocean views everywhere, in contrast to the arid regions of Arizona. Contrary to Florida’s flat terrain and low elevations, the Sierra Madres serve as the region’s backdrop and are home to a stunning variety of tropical plants and animals.
Puerto Vallarta is located at the narrowest point of Banderas Bay, which has a diameter of 25 miles. Although the bay’s total land perimeter is about 60 miles long, only about 40 miles of its shoreline are open to foreign ownership. This land is for sale and stretches from Mismaloya, 10 miles south of Vallarta, to Punta Mita, 25 miles north of Vallarta. A further 15 miles of Pacific Ocean shoreline, some of which are open to foreign ownership, extends north of Punta Mita, giving the Greater Puerto Vallarta region a total of about 55 miles of beachfront property.
Greater Vallarta has experienced a virtual explosion in the number of new homes being built, which has led to an increase in the number of real estate agencies. This is due to the area’s vast area of magnificent land, its climate being comparable to that of Hawaii, and a pro-growth Mexican government with numerous new investment incentives. Aside from resales, these listing agencies are currently marketing more than 100 brand-new condominium complexes with more than 7,000 brand-new condos that are in various stages of construction. In the next 15 years, 20,000 more condominiums are expected to be built; these are currently in the conceptual or planning stages.
There are currently over 80 listing agencies serving the area with about 500 agents, all of which have a fiduciary duty to the developers and property sellers in order to market these properties. They must, however, show loyalty and commitment to the developers and sellers they represent under their contracts in order to avoid a conflict of interest. In order to please their clients and double their own commissions, these agents will, of course, exhaust all reasonable efforts to sell one of their own listings before looking at those of others.
Now that it is clear that there are a lot of new homes being built in and around Paradise and that 500 listing agents are doing everything they can to satisfy their sellers’ clients, some questions naturally arise. How in the world do people visiting the area find their retirement home without looking through 80 agencies? What guarantees do potential buyers have that they will get precisely what they want, in the location that best suits their goals, and for the best price possible? How can potential buyers in Mexico, where all legal contracts are written in Spanish and the laws differ somewhat, be sure they are being treated fairly when the listing agent is speaking on behalf of the developer or seller?
Any foreigner thinking about buying real estate in Puerto Vallarta must use a buyer’s agent for this and many other reasons. There are a few companies in the Greater Vallarta area that advertise themselves as buyer’s representatives, but the majority of them also have listings on their own websites. Prospective buyers should try to work with an agency that has no listings, no biases, and no hidden agendas; one that is familiar with the area, has access to all listings, and has the legal team, property inspectors, appraisers, mortgage bankers, escrow agents, etc. in order to be completely confident that they are getting 100% loyalty and dedication. working on the buyer’s behalf.
In the US and Canada, it is fairly common for agents to exclusively represent buyers, but this is not the case in Mexico. These agents do ask for signed agreements from the buyers confirming that they are acting on the buyers’ behalf, but typically there is no cost to the buyer because commissions are split with the listing agent.
Listed below are some of the benefits associated with using an Exclusive Buyer’s Agent in Mexico:
o EBA Represents no sellers and has no listings
o EBA Avoids dual agency and conflicts of interest
o EBA Owes complete fiduciary duty and loyalty to buyer
o EBA Maintains buyer information as strictly confidential
o EBA Has access to all properties on the market
o EBA Is unbiased in showing all properties available
o EBA Conducts an objective comparative market analysis
o EBA Thoroughly researches property pros and cons
o EBA Obtains appropriate inspection reports and appraisals
o EBA Strives ethically to gain bargaining advantage for buyer
o EBA Negotiates for buyer to optimize purchase agreement
o EBA Obtains most favorable legal and financial professionals
o EBA Prepares contracts in Spanish with accurate English translations
o EBA Works with 100% buyer dedication throughout entire process
o EBA Charges the buyer no fees for representation services
o EBA Often saves the buyer time, money, and provides peace of mind
In conclusion, the savvy buyer will always seek out and work with an Exclusive Buyer’s Agent when looking for a retirement home in Mexico; buyer beware is the golden rule to abide by. By doing this, the retiree will guarantee themselves a stress-free and enjoyable first retirement experience in Paradise.