BUYERS FAQS
Popular Asked Questions ?
Can foreigners buy property in Los Cabos, Mexico?
✅ Yes! Foreigners can purchase property in Los Cabos through a bank trust (fideicomiso) or a Mexican corporation. This allows you to legally own property in the restricted zone (within 50 km of the coastline).
Is Los Cabos real estate a good investment?
💰 Absolutely! Cabo is a top tourist destination, with high rental demand, strong property appreciation, and a growing luxury market. Many buyers see excellent returns on vacation rentals and resale values.
What are closing costs in Cabo?
📑 Expect 5-7% of the purchase price, covering taxes, legal fees, and notary costs. Within these costs includes the 3% ISABI federal acquisition tax. While slightly higher than in the U.S., property taxes in Mexico are much lower.
Do I need a real estate agent?
👨💼 Yes! The Los Cabos market is unique. A local agent ensures you find the right home, negotiate a fair deal, and handle all legal aspects smoothly.
How long does the buying process take?
⏳ Typically 30-60 days, depending on financing, legal paperwork, and trust setup. All-cash purchases can close faster.
Can I finance a property in Los Cabos?
🏦 Yes, but options are limited. Mexican banks offer mortgages to foreigners with higher interest rates, or you can explore U.S./Canadian financing, developer financing, or cash purchases.
How much are property taxes in Cabo?
📉 Very low! Expect to pay 0.1% of the assessed value annually. A $500,000 home might have property taxes of only $500 per year.ortgages to foreigners with higher interest rates, or you can explore U.S./Canadian financing, developer financing, or cash purchases.
Can I rent out my Cabo property as a vacation rental?
🏡 Yes! Short-term rentals are very popular in Cabo. However, you’ll need to follow local tax and permit regulations. A property manager can help maximize rental income.
What’s the Best Time to Buy Real Estate in Cabo?
📆 Off-season (summer/fall) can be a great time to buy since sellers are often more motivated, leading to better deals and more room for negotiation. With fewer buyers in the market, you might have a better chance of securing a property at a competitive price.
🌴 Peak season (winter/spring) is also an excellent time to buy, especially if you have your heart set on a specific property. The best homes tend to sell quickly, and buying during high season ensures you lock in your dream property before someone else does. Plus, you can experience the area in its prime—when the weather, community, and lifestyle are at their best.
🏡 Bottom line: There’s no bad time to buy in Cabo—just different advantages depending on the season!
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SELLERS FAQS
Popular Asked Questions ?
What are the steps involved in selling a property in Los Cabos?
The process includes hiring a real estate agent, setting the price, marketing the property, accepting an offer, signing the sales agreement, undergoing due diligence (title search and inspections), and closing the sale with a notary.
How do I determine the right selling price for my property?
Work with a real estate agent to conduct a comparative market analysis (CMA) to see what similar properties in the area are selling for. Consider factors like location, size, amenities, and recent upgrades. Take a moment and read our article ¨Mastering the Art of Pricing: Pricing Your Property Right to Sell¨ to get started.
What costs should I expect when selling my property?
Sellers typically pay real estate agent commissions, closing costs (such as notary fees and legal fees), capital gains tax (if applicable), and any outstanding property taxes.
What documents are required to sell my property?
You’ll need to provide your property deed, proof of ownership (title), property tax receipts, identification, marriage certificates (if applicable) and the original Fideicomiso documents if you hold the property in trust. A notary can help gather additional required paperwork.
What can I do to make my property more appealing to buyers?
Clean and declutter your home, make any necessary repairs, consider staging, and hire a professional photographer for high-quality images. Buyers in the Cabo real estate market are looking for a turn-key property so make sure it is and you will noticed realistic offers.
How long does it usually take to sell a property in Los Cabos?
The timeframe can vary depending on the property type, price, and market conditions. On average, properties can take a +9 months to sell, though luxury properties might take longer.
What is capital gains tax and how does it affect me as a seller?
Capital gains tax applies to the profit from selling your property. It is calculated based on the difference between your original purchase price and the selling price, adjusted for improvements. Hiring a tax professional can help you determine the exact amount.
What should I expect during the closing process?
During closing, you’ll sign the final sales agreement, escrow agreement, transfer the title, and pay applicable taxes. A notary will oversee the process to ensure all legal requirements are met. Once the funds are transferred, the property officially changes ownership.
Maximizing Your Property’s Value: More Than Just Listing It!
Selling a property is more than just listing it. To get the highest return, it’s important to understand all the factors that contribute to your property’s value. Click the button below to learn how to maximize your sale price!
Location: Carr. Transpeninsular KM 25 L-10 Plaza Vieja Colonia Palmilla, San Jose del Cabo Baja California Sur 23406
Phone: 624 144 5164
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