Your Guide to Buying a Home in Cabo San Lucas

Beachside properties right along the Sea of Cortez, luxury condos and homes nearer the city’s mountain range and inland amenities, and everything in between: buying a home in Cabo San Lucas is great for individuals looking for an easily accessible vacation lifestyle. However, buying out of the country can be daunting, especially for those new to the process. Researching the legal details and working with an agent experienced in international transactions is the key to success. When looking in Cabo San Lucas, follow this guide.

Although buying a property in Mexico has become much easier in the past years, there are still a few factors to consider before making an international purchase. Reviewing the country's laws is important to avoid mistakes, as they can affect how you purchase a home and the guidelines for ownership. Some countries also have guidelines for who can and can’t buy property in the country. In Mexico, a foreign buyer will need a fideicomiso or a bank trust.

Buyers should also think of factors impacting the logistics of a sale, like language barriers and foreign currency. Areas in Mexico popular with Americans, like Cabo San Lucas, will find a large population of English-speaking individuals, which is helpful when dealing with legal documents and signing contracts. Buyers should also be aware of risks regarding fluctuating currencies, then weigh the risks against the benefits of their home purchase.

When buying a home in Cabo San Lucas, the best way to navigate the process while avoiding mistakes is to work with an agent specializing in foreign home transactions. An agent will have a strong grasp of the listings available in the area and can select properties for a buyer to view that aligns with their goals. They’ll also have a good understanding of legal and financial processes specific to Mexico and can guide buyers through unfamiliar territory.

It's common for a buyer to have questions about the buying process, and an agent can answer those questions quickly, keeping their clients well-informed. Although the buying process in Cabo can take longer, an agent will know what steps to take to make home-buying as streamlined as possible. An agent can also provide valuable advice when it comes to considering different properties, making an offer on a home, and more.

As with any home purchase, it’s important to narrow down your goals for the property. Buyers interested in foreign properties may want to use the home as a vacation property, perfect for visiting during the summer, holidays, or other significant events. Retirement in foreign countries can be cost-effective and enjoyable, while others may be interested in opportunities for investment. Either way, it’s important to consider what the area provides in terms of essential services, amenities, and entertainment. Also, consider the property’s condition, size, and additions.

There are several great developments in Cabo San Lucas that an agent specializing in the area can describe and compare for their clients. Puerto Los Cabos is a picturesque master-planned community right next to the Sea of Cortez, offering residents luxury living. Mountainside locations like Del Mar El Tezal are popular as well for their beautiful mix of land and sea, as well as their proximity to shopping spots like downtown Cabo. Be sure to explore all that Cabo San Lucas has to offer before deciding on a location or property.

Buyers who make cash offers can avoid some of the complications regarding international financing options. However, there are options available for buyers searching for mortgages. Like in the US, it’s still important to get preapproved before starting your home search, as securing financing ensures you don’t fall in love with a property you can’t purchase. Buyers getting Mexican financing should consider working with an independent escrow company to stay on track.

The types of mortgages available are more limited than if buyers were searching within the US, although options like a cross-border mortgage can make buying a home in Cabo San Lucas easy. Cross-border mortgages are loans authorized by Mexican banks, which are connected to a global corporation that includes the United States. These mortgage types make the process simpler by offering the loan to buyers in US currency.

When you’ve finished your preparation, start searching for homes in the city. When searching as a foreigner, online resources will be beneficial in your search. Look at several home listings, attend virtual tours or watch videos of the property, and research the surrounding area as well. Buyers should also view any properties they’re seriously considering in person and explore the surrounding neighborhood before buying, if possible. Take notes to remember what you did and didn’t like about a property, then weigh your options against each other.  

When you’ve settled on buying a home in Cabo San Lucas, make an offer with the help of your agent. An agent can help you price your offer based on other properties in the area and will know of any differences in making offers out of the country compared to the US. They’ll also advocate on your behalf, keeping your goals and best interests at heart. When you and the seller have come to an agreement, complete the closing steps. An agent will explain legal documents to you that you might not understand, as well as guide you through processes like confirming the purchase with the notary public.

Buying in Cabo San Lucas is a great option for individuals looking for someplace to retire, interested in a vacation or investment property, and more. Although buying as a foreigner can be confusing, working with an expert agent can smoothen out the process. When you’re ready to start your home search, contact the experienced local agents at the Goldsmith Group Los Cabos to guide you through it.