When thinking about buying a condominium in Puerto Vallarta, Mexico the unit types typically range from older Mexican Colonial architecture to Mexican contemporary design that were built in the 80’s and 90’s, to Mexican Modern style units built within the last few years or so (think granite and stainless steel) and then there are brand spanking new presales which can be purchased pre-construction or at any stage during construction.
Even though many foreign buyers are attracted to the Mexican Colonial or Contemporary properties, when thinking of a purchase in Puerto Vallarta, Mexico many more foreign buyers are looking for newer properties that will have a few more amenities that some of the older properties do not offer.
In the last 10 years the option of purchasing presale has been presented to the Puerto Vallarta condo buyers and the success in sales has been outstanding. The upside to buying in Pre-Construction is if you buy at the beginning to early stages of construction you will secure a really great price, usually well below market value. The downside is that you have to wait until construction is complete before you take possession and are able enjoy your new home.
The differences between a Presale and Resale purchase
When buying resale you will have the opportunity to visit the condo and get a feel for it. In all likelihood the condominium will be sold furnished or partially furnished.
Your AMPI agent will be able to request from the seller’s agent documents pertaining to the property for your review, to ensure you are investing in well built, well managed, financially secure property. Your AMPI agent will also be able to show you comparable properties and provide you with a list of recent sales to show you what you can expect to pay for the particular property as well as justify the price of the offer you will make. Depending on the list price of the condominium your agent most likely will be negotiating the price in order to secure the best purchase value for the condominium. Providing there are no other buyers considering the same property, you should have the time to move at a comfortable pace with your negotiations.
- All reputable projects are listed with a reputable AMPI associated real estate agency.
- The listing real estate office will make available to all other AMPI agents/agencies the marketing material for the project.
- Your agent can request and review all construction permits from the presale sales office. These documents and permits will give the buyer a true sense of security while at the same time are proving that the development has everything in order with the city to be sure to successfully complete the project.
- Be sure to work with a real estate agent who is very familiar with the project so they will be able to represent you and protect your interests.
- Potential buyers will have the opportunity to preview the renderings, floor plans, amenities, features of the development, location and the price list .
- All presale projects are brought to market long before they start construction.
- Many buyers will buy right after reviewing all marketing material and before construction commences.
- The buyer who secures the best price in a presale project will be the buyer who has been made aware of the project early on. By early I mean even before construction started. Early bird gets the worm so of speak.
- Be sure to work with a real estate agent who is very familiar with the project and new development presales so they will be able to represent you and protect your interests.
- Presale prices generally start at approximately 15% less than market value as an incentive to buy.
- Whatever the list price is on each condominium there are often times when the developer will offer a discount on pricing, which is another incentive to buy now.
- At some point during construction, and usually when the building is easily accessible for buyers to walk safely and comfortably to all floors the discount will disappear without notice.
- When a buyer is able to get into the building and get a feel for the floor plans and take in the view, condo sales increase and understandably so do the prices.
- Keep in mind that the condominium you like will also be the condominium someone else is considering. If the project is in the location you want to be in, selling in the price range you want to be in, and with all the amenities you want to have then YOU WON! If you drag your feet chances are someone else will beat you to it and buy it, and when it’s gone, IT’S GONE!
- If you see the condominium and like the price, but wait to buy and when you come back and the price has gone up, don’t assume that you will be able to purchase that same condo at the previous price. You absolutely will not.
- The first buyers in get the best deals, and the pick of their condominium.
- The closer the building is to completion the more you will pay and the fewer choices there will be in condominium types.
- Rarely will the developer negotiate off the list price. They don’t have to.
All this to say, when considering a property purchase in Puerto Vallarta you really need to work with a fulltime AMPI agent who knows the market you are interested in buying in. Whether it be a resale property or presale property use an experienced agent. A good agent who will be able to educate you with all you need to know about the area in which you want to purchase as well as the type of property that will work best for you, Resale or Presale.
By Jay Burchell