Forums > Areas > Jalisco's Lake Chapala Region

1 2 View All

Mike

Nov 30, 1919, 12:00 AM

Post #1 of 35 (6994 views)

Shortcut

Real Estate - Actual sales price vs listing price

Can't Post |

Hope I'm not opening up a can of worms but I have been curious ever since visiting the area earlier this year.
I have found that it's a bit difficult to determine fair market value of a property in the area. I am sure that others who have been looking have run into the same.
I noticed a post the other day that actually gives asking and actual selling price of a property there. It was great to finally see something in print even if it was a bit dated (the sale was two years ago).
When someone sells a home, does a person have to sign a non-disclosure agreement to keep the actual selling price confidential? If this is so, can someone enlighten me with a sound reason for doing so? The realtor that showed us around stayed true to this and would only advise to "make an offer and see if it is accepted". I have a real problem with this as it can result in a person paying substantially more for a property than should be paid.

Comments?

Nov 30, 1919, 12:00 AM

Post #2 of 35 (6976 views)

Shortcut

Real Estate - Actual sales price vs listing price

Can't Post |

I agree 100% with you.The realtor prices the house by sq. ft. at us prices.How do you ask us prices when the elec. is not grounded in most cases,plumbing etc.this is mexico,right.No hvac in homes ,it's a average trukload price if you ask me.They dont give appraisals because all homes are cash.
Ed

norm

Nov 30, 1919, 12:00 AM

Post #3 of 35 (6978 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

I have bought and sold many houses in Canada over the
past 20 years quite successfuly and more recently have bought and
sold two houses (at profit) in the Chapala area over the
past two years. My rules have never changed and they
remain the same to avoid costly mistakes
1. good location that would attact eventual buyers,
2. establish what has been the selling price for similar or
almost identical houses in the same neighborhood and
establish the prices on a square foot basis. (good resaleable,
recently built houses with NA features sell in the $ 50. per
sf basis)
3. look for the likely future (modern) features to attact eventual
buyers i.e. open concept, high vaulted ceilings, good views, security,
modern kitcen and bathrooms, well landscaped grounds and allways
in a good neighborhood - location etc)
4. Don't "fall in love with property at first sight
before the deal is done. The seller and broker can detect
this which can be costly.
5. If the house has costmetic renovation prospects to
add value is an added - plus.
6. Always remember before buying, you should look at
its value first as a good and easy re-sale property.
The last house we bought was re-sold within 6 months
with a 20% profit - an easy "flip".
But, yes do rent in the area first before making the
a purchase.
Good luck.

pedro

Nov 30, 1919, 12:00 AM

Post #4 of 35 (6973 views)

Shortcut

i' m aghast-norm!

Can't Post |

i've been following this forum since feb. because we plan on moving there in 3 yrs. when we retire.
$50 u.s. per sq. ft. costruction in mexico?
i have renovated and restored older homes here in canada for less-2 of them were good enough to be featured in national magazines in 6 page colour spreds. in that climate one does not need to build to the standards of a colder climate-plus the cost of labour must most certainly be far less-why may i ask,
are you people paying such exhorbitant prices for your homes down there.
surely a lot of the locals must live in very nice homes for far less. just wondering?

pat

Nov 30, 1919, 12:00 AM

Post #5 of 35 (6975 views)

Shortcut

Real Estate - Actual sales price vs listing price

Can't Post |

The realtor that showed us around stayed true to this and would only advise to "make an offer and see if it is accepted". I have a real problem with this as it can result in a person paying substantially more for a property than should be paid.Remember, the real estate agent is an agent for the seller (unless they are a buyer's agent). It is their job to get the best price possible for their seller. There is nothing underhanded about this, as you will probably agree when you go to sell YOUR house.

Lucy

Nov 30, 1919, 12:00 AM

Post #6 of 35 (6969 views)

Shortcut

Real Estate - Really?

Can't Post |

In Mexico, the Real estate agent is for the real estate agent. Enough said.I don't want to say a whole lot more but be careful and make your own decision. It is hard comparing apples to apples. That is why it is smart to spend 6 months to 1 year there prior to buying a home. Get to know the market and make your own decision. I have heard people say the made offers of 50% of the asking price and it was accepted. That may be an idle boast.. Who knows?? Depends on how motivated the seller is.. Take your time and see what happens. There are plenty great rentals to choose from...

Hmmmm

Nov 30, 1919, 12:00 AM

Post #7 of 35 (6968 views)

Shortcut

How many homes have you purchased at Lakeside Lucy?NMSG

Can't Post |

pedro

Nov 30, 1919, 12:00 AM

Post #8 of 35 (6968 views)

Shortcut

never mind hmmmmmm

Can't Post |

lucy is right-so far the real estate agents i've talked to have dumped us like a hot potato as soon as i mention we want to pay less than $60,000 for a house-we're not profitable enough apparently.

F. CLARKE

Nov 30, 1919, 12:00 AM

Post #9 of 35 (6974 views)

Shortcut

Real Estate for sale - Lake Chapala and area

Can't Post |

I have been searching the LC site for the past few weeks seeking out property for sale
and have found very little information.
Thanks to this site, we have an appreciation of the problems
that seem to be standing in the way of determining what is fair market value, based on
previous "like sales" over a period of time.
Are there any fellow Canadian Snow Birds in the area that can offer some advice and
direction as to the right way to re-locate to the Lake Chapala area?
Any advice - US or Canadian would be appreciated!!
Cheers!!
Freddie C - confused in Calgary!

norm

Nov 30, 1919, 12:00 AM

Post #10 of 35 (6977 views)

Shortcut

Real Estate - Actual sales price vs listing price - Not so ...

Can't Post |

Prices are not quoted "at US prices per sf".
Realtors price the houses for the seller based on
various factors, the prime one being what price does the
seller want, then what the agent believe he can get
for it and something in the middle. That asking price]
is based on values in Mexico and in the Chapala area
converted into US dollars. I've through it a number
of times when looking and buying houses in Chapala area.
Use the formula and strategy, I have suggested in my
original response to your first posting.

Mike

Nov 30, 1919, 12:00 AM

Post #11 of 35 (6972 views)

Shortcut

Found this link on appraisals.

Can't Post |

I found this article by Judy King that gives a method for determining property value. I haven't tried to apply the formula to the homes we looked at so I do not know if it is accurate.
Has anyone tried to use this to determine how much to offer on a property?
http://www.mexconnect.com/mex_/travel/jking/jkpropertyappraisals.html

Hank

Nov 30, 1919, 12:00 AM

Post #12 of 35 (6970 views)

Shortcut

Rule numero 1

Can't Post |

First you gotta get the Money...then when you got the Money you get the Power...then when you get the Power..you get the property.J/K I've been watching too much SCARFACE.

billybob

Nov 30, 1919, 12:00 AM

Post #13 of 35 (6972 views)

Shortcut

building costs

Can't Post |

You dont have a clue,just money.

Mike

Nov 30, 1919, 12:00 AM

Post #14 of 35 (6974 views)

Shortcut

Some basic rules

Can't Post |

Norm - some good advice but....
How does one establish a price per square foot if one cannot determine what the actual sales price of comparable homes was? That is the main point of my original post.
In the U.S. (cannot speak for Canada) a person can easily obtain information on what homes have been selling for and can then make an offer based on good and solid information. How does one do that in Mexico if the actual sales prices are confidential?
Also, the realtor that originally advised us to make an offer and see if it is accepted etc. was a "buyers agent".
So, the question remains.

David

Nov 30, 1919, 12:00 AM

Post #15 of 35 (6970 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

Norm , not sure where you can build for $50 sq ft, as in this area of Canada $120 to $150 is the average cost.(plus land).

norm

Nov 30, 1919, 12:00 AM

Post #16 of 35 (6969 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

I have not stated in my postings that $ 50 USD was
for US or Canadian properties but the "rule of thumb"
price for Chapala area houses with all the US and
Canadian features acceptable by the gringos.

norm

Nov 30, 1919, 12:00 AM

Post #17 of 35 (6970 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

Yes, understandably Canadian costs of construction
vary upto $200 psf and over depending on the
quality of materials, finishes etc.
Less than 10 years ago in theChapala area construction
costs was about $ 40 psf. Today its about $ 50 psf.
Just check the asking prices of the good houses
(NA features etc.) and you'll find the asking price close
to the $ 50 price. You deal from there for a suitable
house that has all the saleable features to an eventual
buyer (open concept, high ceilings, good location, location
location ... good views etc. - experience helps.

yawn

Nov 30, 1919, 12:00 AM

Post #18 of 35 (6969 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

Just to buttress your claims about costs.I have built in rural mexico for as little as $22./sf. That of course was probably a little more rustic than most gringos would like. I can easily build in rural mexico, even to many gringo's liking, for $40. to $50./sf so long as they don't go hog wild with materials and features. For those that like it a little more, i have built in mexico for well over $400./sf. All of those figures exclude land costs. Those are also u.s. dollars equivalents, as obviously everything was in pesos.

pedro

Nov 30, 1919, 12:00 AM

Post #19 of 35 (6969 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

right on yawn that sounds far more realistic.
i keep thinking of the old addage "a fool and his money are soon parted"whilst following this thread!

Mike

Nov 30, 1919, 12:00 AM

Post #20 of 35 (6967 views)

Shortcut

The original question remains. How does one determine

Can't Post |

actual price per square foot if the selling prices are confidential?
True someone could determine a price per square foot based on asking price but it would be inflated.

pedro

Nov 30, 1919, 12:00 AM

Post #21 of 35 (6966 views)

Shortcut

Some basic rules for buying is to first analyse the reasonable and eventual selling price ...

Can't Post |

i know you directed your responce to norm -but read mine too
where in canada would you be paying$120-$150 /sq. ft.-i said i could get it for less than$50/sq. ft.-i'm in rural alberta-near edmonton-so i would think that in rural mexico one could build for far less since. the building techniques and requirements aren't as intense as those required for a colder climate.i will be getting approximately $150000 for our house and fully expect to pay half that for what we want in a mexican neighbourhood in the lakeside area.
our house ,no doubt in the toronto or vancouver area would sell for between $400000-$600000 range but we're moving from rural to rural-not to guad.

norm

Nov 30, 1919, 12:00 AM

Post #22 of 35 (6966 views)

Shortcut

We're refering to Mexico prices psf not US or Canada.

Can't Post |

Read my previous post.

norm

Nov 30, 1919, 12:00 AM

Post #23 of 35 (6967 views)

Shortcut

Keep the $ 50 psf number and seek out the best ...

Can't Post |

... with all the features in minds as stated in my
original response to your first post.
Fine if you can get a lower buying price than the $ 50 psf
which is merely a "rule of thumb" also maintaining the
realistic re-sale price when you might eventual want
to sell.
But as we have done at Chapala, first we spent several
months before our first purchase and only when I saw
the opportunity with all the "rules" in place did I
make the purchase. Low and behold ! When agents asked
if I wanted to put it back on the market, I did and
the first purchase was sold within eight months later.
I repeated the same stategy (which I have had used many
times in Canada over the past 20 years) and the 2nd.]
house was sold within 5 months after we took possesion.
As a matter of fact there were two serious prospects.
I repeat, first stay there a while to get "the feel"
of the market -
Good luck

Nov 30, 1919, 12:00 AM

Post #24 of 35 (6975 views)

Shortcut

building costs

Can't Post |

Pedro, In the Guadalajara area, the building cost for medium quality homes starts at $50US per sf. In the lakeside area it is higher because labor and materials are more expensive, and in rural areas it is even higher because the materials have to be delivered there from distant places and cost more and it is difficult to find skilled masons, carpenters, electricians, plumbers, etc. First quality construction and finishes start at $80US and up. If this seems exhorbitant to you, I am sure México is not the place for you. Unless you want to buy or build in a lower class or Infonavit neighbourhood.

norm

Nov 30, 1919, 12:00 AM

Post #25 of 35 (6970 views)

Shortcut

i' m aghast-norm! ... why, Pedro ???

Can't Post |

We're refering to reasonably Chapala houses with
US and Canadian standards - of course you don't need
5' foundations, heating, ac, insulation etc.

1 2 View All