[headline h=”1″]Introduction to Flat-Fee Real Estate Purchasing[/headline]
I’m pleased to introduce the first flat fee payment methodology for the purchasers of real estate in the Puerto Vallarta region of Mexico, a system designed to protect the best interests of buyers. While certain the public will embrace it, I’m not entirely sure if the real estate community as a whole will. While some may just give it a yawn, some undoubtedly will be keen to see how sales go and certainly not everyone will be pleased due to the stiff competition these days. Yet, I cannot think of a better time to introduce what I consider a little sanity into an outdated system.
Our local economy is tourist-based and for it to be vibrant we’re reliant on the American consumer. Unfortunately, many Americans remain timid to buy much of anything due to the state of their domestic economy. Throw in the fear factor hyped mostly by the American news media of a Mexico generally painted in the broadest of bad strokes. Together it’s all having an effect on our overall economy and local home prices have tumbled because of it.
Yet, the Mexican economy has remained fairly vibrant since the late 90’s and considering well over 90% of Puerto Vallarta homebuyers pay in cash our problem hasn’t been a mortgage meltdown or a lack of banking regulations. Rather, our problems are a reflection of problems in America.
These days it’s the Canadian consumer who’s keeping our industry afloat. In previous years they’d complain about the difference in value between the two dollars, how they’d have to pay an additional 10% or 20% premium to make up the difference. “If only the prices were in Canadian dollars!” they once chimed. Well, they’re not complaining any more.
Their better economy coupled with reduced prices makes this an especially opportune time for Canadians and many of them are taking advantage of it. How long prices remain low or dollar rates more or less equivalent is anyone’s guess but at least Canadians are buying with confidence.
Unfortunately, there’s just a lot less of them to sufficiently out shadow the effects of the absent American buyer. Yes, Americans are coming back into this market as their economy continues its slow recovery but when they do jump back in full force, and to be sure they will, up will go Puerto Vallarta property prices once again. There are millions of baby boomers desiring to retire in paradise with plans currently on hold, and millions more on the way. It’s all timing.
The weather is great, the people warm and charming and, believe me, Puerto Vallarta is no less safe than wherever you’re reading this. It’s worthwhile to stress I feel as safe now as I did when I moved here many years ago. You couldn’t pick a better retirement community.
With the market down and the opportunity ripe for purchasers, now is ideal to introduce a whole new concept to buying property in Mexico: an agency agreement that ensures buyers interests are ensured coupled with a flat fee payment system to take greed out of the equation. I believe a flat fee system is a better and fairer way to go about buying real estate for everyone concerned while saving buyers thousands of dollars off their purchases.
To understand this business model, though, it first helps to understand how the normal commission-based system works in Puerto Vallarta with its inherent pitfalls and whose very nature works against the buyer. Follow the links below to learn more.
Next: Understanding the Commission-based system
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[headline h=”3″]Introducing the flat-fee business model to Puerto Vallarta Real Estate[/headline]
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1. Introduction
2. Understanding the Commission-based system
3. Fiduciary Responsibility & Due Diligence
4. Flat-Fee Details
5. Buyer’s Agency Agreement
6. Flat-Fee FAQ
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