Price Them Right And They Will Sell

PRICE THEM RIGHT AND THEY WILL SELL

Playa Paraiso/Paradise Beach - La Riviera Maya, Mexico 

JUST SOLD!

DAYS ON THE MARKET

THREE (3) DAYS!!! 

 

What is involved in the Pricing of a property?  And Why Is The Mexican Real Estate Market Still Not Actively Moving (Selling)?

There is a saying among real estate agents in the USA that when a property is listed, or put on the market to sell, there are three ways in which the property gets valued or appraised, and thus listed, and these are:

1.       The lowest price possible – What the bank appraiser determines to be the appraised value of the property.  This price is based, generally speaking, on comparables the bank appraiser obtains from recent sales (commonly 6 month old or less) within a specific surrounding area to the subject property location.  

2.       The highest price possible – What the property owner determines to be the actual value of the property.  This based on original property acquisition value, improvements put into the property, and emotional issues that may vary from being a long term family owned asset to their one and only long term investment and thus their one and only investment ever.

3.       And finally, the actual Market Value of the property – The value the seasoned, experience, and active property market professional and active selling real estate professional, assesses to the property.  Which is normally a more realistic market value based on actual real estate and buyer selling and buying activity in the area.

So why is the Real Estate Market in Mexico still not actively on a re-bound, considering the slowly but surely real estate market rebound we are seen in the USA and the continuous growth of the Canadian Economy?  These two groups being the main property investors (buyers) of real estate in resort areas in Mexico.

The Answer being: Real Estate Pricing. 

The old saying of “build it and they will come”, which literally means, if you open up a business or build a place (development), just build it and they will come (customers/buyers will be knocking at your door), no longer applies.

So we have translated this old adage into “PRICE THEM RIGHT AND THEY WILL SELL”

Unfortunately there is no public readily accessible information available to the real estate agent in Mexico, much less to the regular person, that would allow them to get a better idea of what the actual market value of a property would be when put a property for sale on the market.  Therefore, the varied pricing we see and that is applied to property value in the Mexican real estate market.

Mainly what we end up seeing is what is listed above as point no. 2, as the property value destined to the property.  Not to mention the lack of exclusive right to sell listing policies as they apply in the USA and Canada, which only help to confused the buyer, for each agent offers the same property at a different price.  Thus creating a market price of price speculation, rather than a market of comparable sales and a more realist market value of the property, the latter as it applies to property re-sale pricing.

One tangible example is the property herein being feature.   A beautiful beach front residence which is actually owned by a USA Mexican made real estate agent who had it priced at $975,000 usd.  The price was finally reconsidered and brought down to a more realistic $675,000 usd listing price and consequently sold in 3 days for the full reestablished selling price. Therefore the need for the use of a new adage when referring to the sale of property, not only in Mexico, but that may apply to all real estate markets, which should be; “PRICE THEM RIGHT AND THEY WILL SELL”.

Having a database of ACTIVE AND QUALIFIED potential buyers does help also.

So if you are in the market of Selling your home, or Buying your Dream Home in Mexico, contact a professional, contact…