How to Best Buy Presale Real Estate in the Riviera Maya Mexico

If you are looking at real estate in Mexico, you are probably going to be looking at presale. Here in the Riviera Maya a majority of condos and properties are sold presale. This means buying something that you have not seen built or finished yet. This is one of the things that is very different from other real estate markets. Because you are buying something before you can see it, how do you know you will get a good product? Why is a good realtor essential for making a good decision on a purchase? What things can you look for to give you piece of mind or questions about quality? We put all our tips in one article for you so you can make good decisions about buying something presale. 

Just a little background before we start. We have been writing about real estate and the different aspects for over a decade here in the Riviera Maya. We don’t sell real estate but we do make recommendations for our readers and offer good contacts so you can make good decisions. Because we don’t sell real estate, we can be very honest with you. Personally, besides working here on the website, architecture and design are some of my passions. I have worked as an architect on several projects here in Mexico and have overseen constructions projects. This has allowed me to see firsthand how things are built and how they should be built. This article and video have been an idea for a while because we want to offer the best information about buying one of the largest purchases you will make. We hope you find this information helpful. 

Our Video About Buying Presale and What to Look For

We have been wanting to make this video for a while now because we think it will be helpful to our readers to take control of the buying process. Knowledge is power and anything that can help you make a better purchase is a good thing. So here is a video we made for you. We talk to a real estate agent, developer and builder so we can have tips for our readers. It is not the flashiest video, but the information is important, and we wanted this information to be passed onto you because we have not seen it anywhere else online. 

 

What are the benefits of buying presale?

Since about 60-70% of real estate sales are presale in the Riviera Maya, here are some of the benefits. 

• You have the ability to select the best units. When a building goes on sale, 100% of the units are available. Often there are units that are considered more desirable, both for living and for renting out. Better views, layout, and some units are more rentable than others. 
• Cheaper prices. Developers will offer discounts for buying presale. Often condos can go up thousands to tens of thousands of (USD) dollars by the time the building is finished. 
• You might be given the opportunity to select some of the finishes. Perhaps you want marble in the kitchen and not granite. To change this later would cost a lot more and create a lot of dust and disturbance. To change it before it has been ordered is much easier. Usually, you can change things that are not structural or exterior of the condo. 
• Usually presale requires a deposit, and other payments based on completion of stages. This can give you time to pay and pay the balance over time. Since most sales are cash sales, this spreads out the payments. Sometimes this is considered “financing” but is just a way to spread out payments. 
• Often buying presale allows you to have a trendy place when finished. It is usually the case that newer buildings rent better because they have the latest and trendiest design and amenities. This means they rent better than older buildings in general. 
• The process is longer since you are waiting to take procession of the unit. This does give you time to plan and prepare for setting up the unit. 

Why Selecting a Realtor is One of the Most Important Steps

A realtor is your first line of defense against ending up with a property that is not the best for you. You must choose wisely because there are realtors and then there are REALLY good realtors. We often hear that people are disappointed with their condo purchases. They are not making the returns they thought and might have had issues with the builder. A REALLY good realtor has a lot of experience in knowing the reputations of builders, architects and developers in the Riviera Maya. A REALLY good realtor is going to have a lot of experience that can guide you to making the best decision possible. For more about selecting a relator and how to best work with them, we have this article here for our readers. 

If you are looking to buy something presale and want to make sure that you have a realtor that is going to look out for your interest, you might want to consider contacting Sebastian. As you see from the video above, he is very experienced in the area. Sebastian has worked with many of our readers and has always gotten very good comments. If you email him, he or his associate will get back to you with information that will be helpful and also be able to set up a call or communicate via email. If you include the areas of the Rivera Maya you are interested in, what you are looking for, and a phone number where you can be reached, it will help tailer the information to your needs and wants and get you off to a good start in your search for a property. Below is his direct email.

What about building codes and inspections? 

If you are buying a newly built property, why do you have to worry about anything? It was built with building codes and there were inspectors from the government there, right? Technically this is how the system is supposed to work. All builders in Mexico need to pay for permits and then get inspections from the local municipality. However, each municipality is different in how it inspects work. Inspectors can be very picky or even nonexistent.

In the Riviera Maya, the more established cities have better enforcement and regulations. Cancun and Playa Del Carmen are similar in regard to the permit and the inspection process. If we go further south to Tulum, often you find that inspections are not always done. Why is this? Well, there are about 300 projects going on and Tulum has grown so fast, that the inspections often are skipped or rushed. This means it is very important to work with a good realtor that knows the quality and reputation of the builders and developers. And by good realtor, we don’t just mean someone who is nice, and people recommended on Facebook. 

Who is the architect? developer? and this is important?

Most people judge a building on the location, price and look. But looking further into the construction process is important. For example, many upper end condo buildings will mention the name of the architect in the advertising material. Now you might not know many of the architects working in Mexico, but a brief search online can garnish more information about them. Having a good architect is important because they will know how to build in our climate here in Mexico, have a knowledge of the building process, and design things that not only look good, but function. 

Sometimes you see a new building that are visually good looking or stunning, but they might not function in real life. Sometimes in the design there are features that are designed to sell the building but are not designed with function in mind. Many new buildings like the rooftops for pools and penthouses, but where will the air conditioners be placed? Sometimes these are all put in the underground parking and the heat rises up into the building making for a horrible design, just to give an example. 

If you are purchasing a property from about $250,000 USD and up, there is a good chance the architect should be known or at least some information online about other work. 

What is the difference between a good builder and bad builder in Mexico?

The Riviera Maya attracts builders from all over because there are many projects going on here. Some are builders that have worked for decades here and have a good reputation and others that are totally new to the area and might have a body of work but have not done anything in the Riviera Maya which is very different from other areas of Mexico. So why is the builder important? Well, below are some of the differences between a good builder and a bad builder. 

A good builder:

• Will deliver on time the promised unit with all the things that are supposed to be included.
• They will use a good architect that understands the climate and is not just a nice-looking place, but one that functions.
• A good builder will be financially backed. 
• Has a good reputation locally. 
• Delivers a quality project that will age much better and have less problems than other builders. 

A bad builder:

• Cuts corners to save money. They realize that many people buying the units have no idea about many details of construction, so they can say almost anything. 
• Might not be financially stable and this might affect the finishing timeframe of the project. 
• Makes excuses for things being late (one of the top complaints amongst buyers in the Riviera Maya). 
• Hired the cheapest workers to save money, hence resulting in cheaper quality. 
• Gives lower quality amenities than those stated. 
• Tries to give excuses or run out the clock on maintaining the warrantee on your new place. 

What you can Check on a Walkthrough of a Property

Most people buying real estate in the Mexico are not going know all of the construction methods, but there are some basic things you can check. There are also more detailed things that you can check or leave it to a good realtor to check these things for you. Below are two lists of things to look for when looking at a model property or your actual unit. 

Basic Things to Check in a Property 

• Is there attention to detail? Has the painting been done where there are straight lines? Has the grout between the floor tiles been evenly added? Are there blotches of paint or grout on the tile?
• How is the paint on the walls? It may look good, but if it is a cheap flat white paint, it will get marks very quickly. Cheap paint is often used in cheap condos. 
• Check the plumbing below the bathroom and kitchen sinks. Is it plastic or metal? How does it look? Often these areas are not as detailed because they are out of view. 
• How about ceiling height? There is no standard ceiling height in Mexico because the building methods are different. Most construction in the United States for example, has 8 ft ceilings because sheetrock is 4ftx 8ft. Most places in the Riviera Maya have about 9 feet tall ceilings. The height is important for space for hot air to rise and leave the living area more comfortable. 
• Is everything listed that is included in the unit there? Different builders include different things. DO NOT assume that everything is included in the sample unit. Some sample units have everything added so it looks great and shows the full potential of the property. Just to give you some ideas, some condos do not include closets, cabinets, better quality doors, appliances, shelves and window coverings. 
• Take note at the name of plumbing fixtures, air conditioners, appliances, pumps, and most things with a name on it. Also take photos to match to online sales websites. You can easily use the internet to see if these are quality things used or are on the cheap end of things. If you find that many of the things are lower end quality and price, this means the builder is really trying to offer a cheap product. Hint: Helvex is one of the best brands in Mexico known for its quality. I personally like shopping at El Niplito which is a plumbing supply store will better quality merchandise. 
• Feel things. How do door handles feel, how do windows feel closing? Usually, quality things function well and feel solid. I personally hate when bedroom door handles are installed as entrance doors from the outside, it is cheap and not as secure. 
• How well is the carpentry work? In Mexico it is easy to get carpenters to make doors, cabinets, and other things made from wood.  Don’t think that just because they have put in custom woodworking details that it is high-end. The quality can vary a lot locally. Some things that look good, can be made incorrectly and you can have twisting wood in a year as it dries or doors that do not open. You might not be able to tell at first, but getting a general sense of how good the carpentry is showing how much attention to overall details were done on your unit. 
• Are electric outlets and switched in logical places? Are plugs in the same direction and height? Do bathroom and kitchen outlets have a ground (GFCI)? This really is a problem because 
• If you can look at several units in the same building, you can get a sense if all units have the same quality, or some are better than others. 

Check the Electrical Box and Connections

Each home or condo has an electrical box where you find the breakers. A very simple and effective way of seeing if the work looks good is taking off the faceplate. This means unscrewing 4 screws and looking at the panel. Are the wires organized and have ties to keep them orderly? This visual inspection can be very helpful! 

The last thing to note is if the circuits are marked on the panel. If the panel is labeled and the interior looks good, that means that a good amount of detail was done in making sure it was done correctly. If the electrical panel looks good, most likely the rest of the wiring was done by a profession with decent standards. 

You can also take off the electrical outlet faceplate. Are there twist wire connectors or is there black electrical tape for connections between wires? It is very common to use the black electrical tape here, but the problem is the humidity here will make the tape fail in coming years. 

Should you hire an inspector for your property?

In Mexico home inspectors are seldom used and there are not that many qualified inspectors. With that being said, here are the occasions you might want to have one and when you probably do not need one. 

For the most part notarios protect the legal status of your purchase and record it. If you have a lawyer, they are covering you legally to make sure what you bought is what you get, and they make sure the terms are in order. A good realtor will have already screened builders and a realtor with years of experience in the Riviera Maya is going to know the reputation of the builder. Below are some scenarios and when is best to hire an inspector. 

Yes, possibly think about getting an inspector

• If you are buying an older building (7 or more years old) and it looks a little old or you just want to feel comfortable with your purchase. Standards for structural support were generally not as good as today. Some older buildings were built on mangrove and have issues with cracks and settling. The 7–10-year mark are usually considered “old” here in the Riviera Maya. Buildings of these ages often start to have issues with electrical, plumbing and rust. 
• You are dealing with an agent that sells direct from the builder, and you do not have much information about the builder’s reputation.
• If your realtor does not have much information on the builder, you might not have the most experienced realtor. And you like the condo but want to make sure it is built well. 

No, it probably is not necessary

• If you are buying new or presale and with a builder with good reputation. 
• You are working with a good realtor that has all the information about the builder and the reputation is good. 

Building inspectors, for a reasonable fee, can give you piece of mind and another set of eyes to inspect your presale property.

What happens if your presale condo property is not done on time?

This is a concern for many that buy presale and have expectations of taking procession in the near future. Around Playa Del Carmen and other cities you can find building projects that are idle or delayed. This mainly happens when a builder or developer does not have financing lined up. Most contracts allow a 3-month grace period from the time of delivery. Some developers might have a longer period. This is the reason having a lawyer go over your contract will alert you to all the details of the contract. 

Most contacts also have a disclaimer that if there is something out of normal (a hurricane for example) They are allowed to delay the delivery date. 

So, what happens if your condo is not ready when you are supposed to take possession? Usually you have several options available, it will be up to your contract to dictate what happens next. One possible option is a return of your funds plus penalty. Another option is the developer paying a penalty until the unit is delivered. With good builders there is usually no issues, but this is why you really need to understand your contract before you sign it and possible have a lawyer go over it with you.  

How to Make Sure Your Warrantee Will Cover Your Presale Unit

Most condos come with a one-year warrantee that will cover most things about the property. It is fairly common to contact your builder during the first year to touch up or address minor issues that arise with buildings. Building can settle a little, caulking might need to be redone on windows or doors because of shrinkage or maybe add some grout to a tiled portion. These are normal things that happen in the initial life of a building. However, there might be more serious issues that arise where you might need to refer to your guarantee. 

Ask when you buy your property what things are required for you to maintain your warrantee. Most of the time it does require you to maintain the property. This can be with regular air conditioning maintenance where you need to have receipts. Knowing what is required of you will eliminate any surprises when you need to repair something you thought was under warrantee. This is an important step that many fail to think about, only to have issues with the builder at a later point. 

Conclusion

Since many of you will be buying real estate presale in Mexico, it is important to be prepared as possible to make a good decision. Starting with a good realtor is the start of the process. We wrote this article so our readers can be the best educated when making a big purchase. We hope this article and video help you. If you have any more questions, feel free to leave them below or on the video comments and we will be sure to get back to you. 

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Mr.Yucatan

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