Act Like a Buyer
By far the first step and best way to determine the correct “Listing Price” for your Cabo property is to compare it to “Currently Active” listings on the Multiple Listing Service (MLS). You can start that process right now using our free online Los Cabos MLS Property Search or meet with a qualified Agent to get help.
Try not to approach this phase as an owner. Instead, put yourself in the mindset of a buyer. That simple step helps remove the emotional connection you have with your property which in turn lets you be more analytical. Human nature makes us all apply extra value to our things and your home or your condo is certainly better than most anyone else’s, right? Nix that. It may be. But the only added value above and beyond a comparable property should be reserved to things like improvements/additions, upgrades, property condition and amenities.
Work With a Professional Real Estate Agent
To make this part of the process easier, we’d suggest you do this alongside your real estate agent. They’ll help you setup your search and familiarize you with the Los Cabos/BCS MLS system. Now starts the actual comparable properties search. This phase helps you find a initial range of values of properties that are similar to yours.
Remember to try and keep your mindset in buyer mode. Nonetheless, you will find times that the seller in you will come out. At the low end you’ll no doubt find yourself thinking mine is better. As you move up the price ladder you will start seeing properties that both you and your agent feel are quite similar in value to yours. At the high end you might start to see that other similar properties in this range just have a bit more going for them and as such, you’ve just passed by the price level you should consider as your listing price. By the end of this first session of pricing research, you should have a fairly good idea of where you should be setting your listing price.
Hone Your Research
Now that you’ve familiarized yourself with the MLS interface and the current market inventory, the next step is to refine your expectations by looking at what price similar properties have actually sold for in the recent past. That part you can do on your own, but better to do with your agent who, based on their local knowledge, may point out things you were not aware of. Simply do the same search as in step one but this time filter it from “Active Listings” to “Sold” listings and set a 12 month time period. This helps you establish what to expect as an offer, thus your estimated sales price.
Up Your Odds For a Quick Sale
Last, have your Agent review those “Sold” listings and examine the time on market. Keep in mind that the longer a property remains on the “Active” market the less attention it may receive and the lower the eventual sales price may be. This isn’t always the case but use that knowledge as a guide in helping you to not overprice. Note that the local market is smaller and tourist driven, so properties typically take longer to sell. Current average per our MLS is around 300 days. However if you are priced right and listed with a realtor with a track record of selling well, you should beat the average days to sell. Need to sell faster than the average time on market? Set your listing price lower and/or offer an Agent bonus to move it faster.
Get Ready to List Your Property
Now that you’ve set a listing price, have your Agent evaluate your title for any potential issues. One of the biggest surprises is tax issues but those alone are not the only surprises you may encounter. In our experience, around 50% of the sellers we deal with run into title and tax related issues after having accepted an offer. This is problematic on many levels. First, it may cause a viable deal to come apart at the seams. Second, it can come at a point where it is too late to back out and you end with with lots of unexpected costs.
A critical step that you should take before you sign a listing agreement is to have your Agent prepare a net proceeds estimate. That means having them let you know what you can expect to put in your pocket at the close of escrow after all expenses, taxes and fees associated with the sale. An experienced local Realtor must have solutions and/or options to dealing with any issues and they should be focused on helping you net the greatest amount of money at the end of the deal. Get that estimate in writing. It should include a written breakdown of all the common costs of selling that may be required.
Now you’re ready to sign that listing agreement, and we hope it’s with Baja International Realty - The Cabo Real Estate Professionals!
If you have questions about selling your Los Cabos property, we encourage you to fill out our FREE SELLER EVALUATION form on this page. We’ll be happy to provide you with a preliminary analysis of what your Cabo real estate is worth and answer any questions you may have.
