Living in Los Cabos: We ARE Affordable!

Living in Los Cabos: We ARE Affordable!

Today I’m going to totally shake your preconceptions about Cabo real estate. Most people think we’re expensive, and there is truth to that. Not only are we a resort area (always priced higher than non-resorts) but we’re also at the tip of the world’s longest peninsula. So land here is at a premium because we don’t have room to spread out. That said, there are bargains and affordable properties, and any one of them could be the perfect retreat or starter or retirement home for you. I just finished searching the MLS for examples and I have to admit that what I found shocked even me!

Lately our team has had a flurry of inquiries for housing in the $150,000 range, excluding closing cost. And we’ve found that there is an amazing assortment of options in that range. I did a search of our MLS this morning and there are 206 options under $200,000. Why did I search for 200K?

Well according to the same MLS in October the average sale price was 75% of the asking price. That’s average, of course, and can’t be counted upon completely: some sellers are going to stick to their price and others will take even less. But, it shows us that it’s not unreasonable to look that much higher than our target price. Here are some examples of what I found. You can check them out on our website http://www.caborealtypros.com. Just click on “Cabo MLS SEARCH” or the photo of the pretty sunset on the home page and you’ll be able to search every single property on the market in the state of Baja California Sur. You can do a customized search of your own, or enter the MLS number of these examples to see photos and details for yourself.

• I was shocked that at the low end of the range you can actually find condos for under $40,000! In San Jose there are 13 new units, a two bedroom is priced just under $34,000. These are not luxury units, but small, basic and functional. MLS#12-1654
• Right downtown in Cabo San Lucas there is a one-bedroom unit only a few blocks from all the action priced at $38,000. Again, it’s pretty basic but in a solid neighborhood just behind the Mar de Cortez hotel. MLS#08-53
• At the high end of our search I found a two bedroom condo in Cabo San Lucas, nearly new with a killer view of the bay. The finishes are surprisingly upscale for exactly $200,000. MLS#10-1116
• Over on the San Jose side I found a two bedroom condo on the golf course, again priced at $200,000 MLS#10-1209
• Definitely in this budget, but deserving of their own blog are Ventanas and Cabo del Mar. They will be up next, but for a quick preview check out this two bedroom unit: MLS#12-736
• In the ‘funky but fun’ category you can’t beat the Cabo Cabanas. They were out in the middle of nowhere when they were built, but are now convenient to all services. The circular, palapa homes are just too Cabo. A two-bedroom, one bath resale is on the market for only $59,000. MLS#10-2490
• And in the ‘best jaw dropping bargain’ category the winner was a three bedroom three bath custom home in Cabo Bello, close to Cabo San Lucas on the ocean side of tourist corridor and a brief stroll to a nearby private swimming beach, with pool for only $196,000!!! As Guy Fieri would say: insane. MLS#10-795.

So why haven’t you heard about any of these?

There’s a truism in Cabo’s real estate community which I doubt we could find any broker to deny: “The smaller the deal the bigger the headache”. At best the smallest of these properties are a losing proposition for the agent; remember that finding the perfect place and negotiating the deal is the smallest (and most fun) part of our job. The normal closing here takes about two months, and we’re not sitting on our hands during that time. And in my experience the small deals are anything but normal. I really don’t know why, but they always end up needing exorbitant amounts of time to fix prior problems in the paperwork. Here’s how bad it is: I am still trying to close a $50,000 building lot over a year after my clients made a deal! If they weren’t such nice folks I’d have given up months ago. As it is, we’re hoping to FINALLY close just after New Year’s.

Anyway, I just computed the commission for the most affordable condo on the market right now. The average agent at the average agency could expect to realize about $765 for their trouble. There’s no way they are not in a deficit situation on that. But, there is an alternative.

Although this is common in the U.S. (or at least it was before the crash) it is almost unheard of here. But it can be made to work. You can offer a buyer’s premium, paying the agent who helps you make the purchase a bonus on top of that commission. It’s only fair. They want to help you, but they also deserve to be paid for their time. This option might just be the solution. Be sure to make a written contract with your agent to avoid future misunderstandings.

I’ll admit I was surprised at how much affordable inventory we have. So know you know what truly is possible. Next up? What you need to know about the closing costs on a smaller property and the cream of the crop for good value: the brand new Cabo del Mar.

Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over eleven years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog http://www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.

© 2012 Carol S. Billups

Save With Supermarket Souvenirs!

You know how some people have regular passports that have 24 pages and others have the jumbo 48 pager? My sis needs a ‘super jumbo’. She’s often traveling the globe to attend conferences or give lectures or both. A tip she’s taught me is to always visit the local supermarket (or equivalent). Number one, you get a unique glimpse into how the people in this country really live, not just the tourist scene. And you can often pick up novel and inexpensive souvenirs. When she visits Los Cabos it’s no different, in fact the supermarket is one of the first places she wants to hit. So what are some of the best souvenirs you can pick up there?

 

First, if you’ll be taking back your allotment of alcoholic beverages, you’ll find the prices in the grocery store much more reasonable than those in the shops along the tourist strip. You might even find some brands or varieties unavailable elsewhere. Sure, you can take back a bottle of Kahlua, but you can buy that in the U.S. Wouldn’t a bottle of Mango liqueur be a better option?

 

Candies make a nice souvenir for co-workers or anyone you might want to bring a little trinket to; most markets have a section where you can buy traditional Mexican sweets. As a rule they are unique, attractive and beautifully packaged. Last week our administrator brought in a box with little marzipan bars in the colors of the Mexican flag to share. I thought they were the usual, until the first bite: they were infused with tequila. THEN I looked at the box: Borrachitos, or little drunks. Another unique gift!

 

Hot sauce is ubiquitous in Mexico, and the average supermarket has a large selection: everything from relatively mild to brain-burning.  For chipotle addicts (I’m one) the Bufalo brand makes a bottled chipotle sauce, which is basically pureed chipotles, which is much more convenient than cans. Here in Los Cabos many restaurants have Salsa Huichol on the tables, which is similar to Tabasco in heat but without the vinegary taste.

 

Last Sunday my cooking partner and I were making ourselves a Bloody Mary (can’t cook without one, can you?). When she was squeezing in the lime juice she held up the Mexican squeezer and commented “These make the best souvenirs”. Come to think of it, I don’t think I ever saw anything like them in the States. They are metal devices, the best description is to think two deep spoons, one slotted, joined with a hinge. They’re fast, efficient and easy and only cost a buck or two. I just learned their name is ‘exprimador’, a photo is attached.

 

In the snack aisle you’ll find interesting flavored peanuts, my particular favorites are lime and salt, but there are also hot pepper and japonesa (kind of a hard shell) as well as other only-in-Mexico snack items. Try them! While you’re here you might as well try some of the local tastes, you might find a new favorite.

 

Very easy to pack are the little packaged drink mixes, especially the B-Lite and Clite envelopes. Yes, they are exactly like Crystal Lite or other brands you’re familiar with but in way cooler flavors. Tamarind (the dried seeds of a tree) and Horchata (cinnamon rice milk) flavors do seem to be acquired tastes, but everyone loves Jamaica which is hibiscus flower tea. You might also try the guava, mango, piña colada or any of the other exotic flavors. These envelopes cost about a quarter each.

 

If you or someone you know loves Mexican food, there are packages of mole sauce that pack well. But be aware: no self-respecting Mexican cook would use the packaged variety by itself. Mole is incredibly complex and time-consuming so home cooks often buy the pre-packaged versions and then add their own special touches. I’ve been told the simplest ‘fix’ uses the very thick (think paste) type. Adding sugar and chicken broth in the blender to make a thinner sauce, then cooking it down. This is often used for enchiladas… yum!

 

If you’re bringing a little something back for your friends the coffee aisle coughs up some great possibilities. Perhaps because we’re a tourist destination most stores stock some gift-able packages but at more reasonable prices than you’ll find in the hotel gift shops or in the tourist areas. Notable are some of the organic coffees from Chiapas, or if your recipient sweetens their coffee treat them to some of the carmelized beans that smell wonderful when brewed. There is even coffee roasted locally that makes a great souvenir, and available in most of the supermarkets in Cabo.

 

My personal favorite supermarket trinket  is found is a bar of soap. But not just any bar of soap: these are special and sure to get a smile. There is a toiletries manufacturer here in Mexico with a name that translates poorly: Grisi. Yes, that’s pronounced ‘greasy’. Among their products are some bar soaps with interesting ingredients including tomatoes and donkey’s milk. So you can gift someone with a bar of Grisi Tomato Soap or Grisi Donkey Milk. See, already got a grin out of you! Truth told, they are actually excellent moisturizing soaps. And the labels are just too cute.

 

These are just a few of the possibilities. Except the coffee and booze, everything I’ve suggested sells for about a buck. So next time you’re souvenir shopping in Cabo, roll on over to the supermercado for some super savings.

 

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

 

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How To Get A Massage In Cabo

What, you say? Yes, I know. Cabo is arguably the spa capital of the known universe. Not only does every hotel and time share boast its own ‘signature’ spa, but there also seems to be a day spa on every block. And if that’s not enough, rental companies have spa services that will come to your villa or office. So you might wonder why the title isn’t ‘how to avoid getting a massage in Cabo.’ The catch is: this is how to get a massage without it costing you, ahem, an arm and a leg.

Ever wonder where the fancy-pants high end spas get all those white-uniformed technicians? Aha! Yes, there is a spa school here in Cabo where you can, for a ridiculously low price, let someone practice on you. Not on a bet would I let them practice their hair-cutting or worse, dying, skills. But really, how can you mess up a massage? Even if they don’t do it perfectly it’s still going to feel good, right?

The prices they charge are outrageously low. For example, a one hour relaxation or sport massage is 150 pesos. In some hotels that would be close to $150 US! A half hour back and neck massage is only 100 pesos and a 90 minute hot stone massage which could cost over $200 in the fancy joints is a whopping 400 pesos at the school. That’s worth letting someone practice on you, don’t you think?

Of course there are a few other considerations. Since you are dealing with a school you’ve got to be ready to roll with the punches. For example, yesterday I decided a visiting client/friend needed to discover the joys of the spa school. I made appointments for two, one hour relaxation massages. When we arrived the receptionist, who is the teacher, was very embarrassed to tell us that the only students available were only qualified to do the back and neck massage. Well, half a massage is better than none. So we got to be, quite probably, someone’s first paying customer. After a longer than normal wait the teacher reappeared with two very frightened looking young women in sparkling brand new white uniforms. Just short of where we were sitting she stopped, reminded them to smile and made them rehearse “Hello, my name is”. Too cute! My trainee was so nervous I still didn’t get her name after asking her to repeat it! But she did a very good, very professional job even if her hands were shaking a bit at first. She’s going to do very well in spa-dom.

The Avanti Instituto de Cosmetologia, Belleza y Terapias Corporales (pretty impressive name, don’t you think?) is located where the students are: in a Mexican neighborhood. A perfectly safe Mexican commercial neighborhood located on the way to the private airport in Cabo San Lucas. Even tourists needn’t worry about visiting. To get there take the Bordo (bypass road from Cabo to Rt 19) to the first stoplight. Actually, the middle stoplight no matter which direction you’re heading, the street is Leona Vicario and there’s a sign to the aeropista. Turn uphill toward the airport for two blocks and turn right at the electric company substation and you’ll see the school with the name out front. They’re open six days a week from 8:00 to 8:00, with the traditional long lunch break. This isn’t a secret, so you’ll need to make an appointment. The phone is 172-0010. Expect to speak Spanish, all you need to know is “Cita para Massaje” which is pronounced “SEE-tah Pah-rah Ma-saw-hay.” Remember it’s luck of the draw. You may get a student who’s ready to graduate and just the same level of skill as in the real spa. Or, like our experience yesterday, you may get someone just starting out. [I should add that this was the first time I’ve heard of them not being able to provide the promised massage.]

Some other words of wisdom: first being that they really do try to create a spa-like atmosphere. But it is a school. What I’m pussy-footing around is that the linens are hand-me-downs from the real spas. They’ll be clean, but may be frayed or stained. My friend Jane taught me to always bring a beach towel with me and put it down to lie on. A second good thing to know is that they seem to be the only place in town still using a 10-1 currency conversion. So pay in pesos! My friend paid $10 US for her massage, I paid 100 pesos which is about $8 US.

Facials (which I haven’t tried yet) start at 200 pesos. Manicures are 70 pesos and pedicures 100. And as memory serves its about 150 pesos to have a paraffin wax hand treatment. Tried it once: TORTURE!! No, it didn’t hurt but you can’t move your hands for about 30 minutes. Impossible for me. The teacher kept running over and scolding “Seńora! Please do not move the hands!’ How embarrassing. I flunked spa-day.

When I dropped my friend back at her house she was still marveling about what a wonderful find the spa school is. “Girlfriend! At that price you can afford to go every week.” Yes, at least once a week. One more reason to love living in Cabo San Lucas!

© 2009 Carol S. Billups

How Low Can We Go?

I’m having trouble answering an email from a client, something that NEVER happens. But this time I am. It’s not that I mind saying “I don’t know.” No, what I mind like heck is having to say “I don’t know and I don’t know how to find out.” THAT really sticks in my craw.

Here’s the situation. She wants to know if she should drop the price of her house again, and if that will help it sell. And I really don’t want to answer.

Have property values in Cabo gone down? Absolutely. Oh, of course there are lots and lots of sellers who have not dropped their price and are merely hanging on until the market comes back. And there are others who are dropping their prices. And still nothing is really selling, except a few very small properties. There’s not really anybody looking!

What makes it worse is that there really isn’t a data source I can turn to. The Multi-List’s MLS system shows only one or two sales year to date, but it’s no secret around Cabo that the sold data in particular is notoriously inaccurate. So will dropping the price of the house, which is already the lowest price in the subdivision, bring in a buyer? I just don’t know. Maybe there is buyer out there lurking on the internet, waiting for a house in that neighborhood to slide into his/her price range. Or maybe not. Who knows?

I keep thinking about my ‘hot list’, that list of these-are-so-killer properties that I think are too good a deal to last. Properties like the Villa La Estancia ¼ Share I’ve been watching for months. The thing about the fractionals is that they are all alike, so one unit is really no different than the others; a commodity item. The average asking price for a re-sale quarter share there is $429,000. This seller is down to $180,000 and still owns the condo.

Or how about a pair of building lots with killer views of the arch I sold a year ago? I thought my client got a great deal at nearly $300,000 but the sale fell through. Now they’re being offered at $150,000 for the pair, and no takers. Shocking.

And a gorgeous two bedroom condo at Misiones, all re-done with new marble floors, granite and stainless kitchen, wonderful ocean views. The listing agent has been pounding this divorce sale, which at $299,000 is about half the asking price of similar units in the same complex, for over four months now and it’s not moving.

These are just three examples of what I consider great buys that aren’t selling. I remember about a year ago a friend who sold real estate in a resort community in the States told me “Carol, I could put free on that ad and my phone still wouldn’t ring!”

What I’m wondering is this: have property values really dropped more than 50% or is it just that there are no buyers? Of course, if there are no buyers we might as well say values have dropped 100% but let’s not go there. Yeesh.

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. You can read more of her articles on http://www.reloscabos.com.
© 2009 Carol S. Billups