01 Jul Buying a Home in Mexico

This article is co-created with our trusted partner Far Homes.

Far Homes is focused on helping expats purchase property here in Mexico, providing support and insights through the intimidating process of buying abroad. Started by former RedFin CEO and Door Cash co-founder, this leadership trio of RedFin alums are a power punch for the Mexican real estate market.

So… You want to buy property in Mexico? Sounds like a great idea! Let’s talk about how to make that dream a reality.

Thanks to changes to Mexican law over the last fifty years, it’s now possible to buy property in Mexico even if you’re from another country. Plus, there are more reliable resources available than there were decades ago, from lawyers, to escrow companies who will make sure the paperwork is official and the money exchange is smooth.

In this article, let’s dig into the first two steps of the phase one in the process: FINDING your dream home, investment property, or rental place. Here are the two key parts to this phase:

1- Narrow down your search and 2- Find the right fit.

NARROW YOUR SEARCH

Location! Location! Location! To figure out what your future property looks like, its important to focus on what region of Mexico you want to buy in. Mexico is a large country, lucky to have both the Atlantic Ocean on the eastern side, and the Pacific Coast on the western side.

Different towns will have very different atmospheres so you’ll want to find the one that suits you. If you’re planning frequent travel between Mexico and your home country, you may want to find a location near an airport. If you plan to stay for long periods of time you may be more focused on the local community. Or if you’re looking for an investment property, you may focus more on areas with strong tourism.

Brand new, or already built? Modern designs and sustainable building plans make new construction appealing. But new developments can sell out before they’re completed, so you may need to buy during construction and wait months or years before you can move in. If that doesn’t work for you, you can still find plenty of existing homes in newer buildings, or find a bargain on an older home that needs an update.

What can you afford? Mexico is a cash economy and buying a home is no different. While there are some mortgage companies catering to foreign buyers in Mexico, the interest rates can be high. If you own a home in the US that has equity, you may be able to fund your purchase through a home equity loan.

This leads us to the next part of the FINDING phase:

FIND THE RIGHT FIT

Get a good agent, and a local lawyer. In Mexico, real estate agents are there to help you find the right home, negotiate a price, and write the initial offer to purchase. Once that’s complete, they hand the process off to a specialized real estate lawyer in Mexico who will represent your best interests and manage the closing process. If you’re buying an existing home you’ll want a good agent to take you on tours, either in-person or on video, and help you negotiate the best price. Unlike the US, there are no licensing requirements for agents, so you should also make sure you’re working with someone reputable. If you’re planning to buy new construction you may not need an agent since you won’t be touring, and most developers have their own purchase paperwork. In either case, you’ll need a lawyer for the closing process.

Go on tour. You may want to travel to Mexico to tour homes in person, but agents will also happily help you with video tours if you’re not in the area.

Give your lawyer the power to sign on your behalf. We recommend giving your lawyer Power of Attorney so they can sign paperwork on your behalf, so you don’t have to attend signings in-person. You can do this anytime you’re physically in Mexico.

With the real estate experience of the Far Homes team, you can be sure you’re in good hands with knowledgable and friendly people guiding you to your dream Mexican home.