When you are trying to decide about buying real estate, there are many things you need to consider so your decision is a wise one. For starters, are you asking yourself where you should purchase a vacation home? A very popular choice for many people that want to buy a vacation home is Mexico. The charming country has a great climate, stunning natural beauty, and many restaurant options. They also have numerous outdoor activities to enjoy year-round as well. If you want a luxury vacation home, check out Villa La Estancia. We have solidly constructed beachfront residences in Riviera Nayarit and Cabo San Lucas. There are real estate terms that you should know whether you are purchasing a vacation home or a home full-time in Mexico. Read below to learn more about real estate terminology before you buy a vacation home in Mexico.
Real Estate Terminology – Terms You Need to Know
- As-Is: When purchasing a home, there are some homes that are sold “as-is” or with requesting repairs options. The “as-is” phrase means that the seller does not want to do any repairs on the home or provide a credit off the price. However, the buyer can decide to purchase the home as it is and depending on the repairs that need to be done, or they can wait to see the results after the home inspection has been done.
- Appraisal: An appraisal is the value of a property that is done by a person that is authorized. An appraisal is usually required before any real estate purchase, especially for insurance, taxes, and loans. To get an accurate appraisal, the professional will review properties that are similar that have been sold recently. The square footage of the home, bedroom numbers, bathroom numbers, and the age of the property will help determine the real estate appraisal value.
- Listing Agent & Buyer’s Agent: A listing agent will represent the seller of the property and the buyer’s agent will represent the buyer. A buyer’s agent can also be called the purchasing agent, too. They will assist the buyer in finding appropriate properties in the price range and pay attention to the buyer’s preferences for a home.
- Closing: The closing is also known as a settlement, and this is the last step with purchasing real estate. When it is closing day, it means the buyer is the official owner of the property.
- Days on Market (DOM): Days on Market or DOM is the number of days the real estate property has been listed until it is sold. The difference between DOM and Cumulative Days on Market Days can sometimes vary.
- Due Diligence: Due diligence is the time period from when the purchaser and/or investor access the property that they are interested in buying. During that time, they will receive a full disclosure about the real estate property’s facts before completing the purchase with the seller.
- Escrow Holder: An escrow agent is a third party that is neutral during any real estate transaction. The escrow holder will be holding the funds along with any assets until both the seller and buyer are satisfied with the purchase agreement. Once all have agreed with any obligations, then the funds will be released to the seller and the sale is closed.
- Homeowners Association (HOA): A homeowner’s association or HOA is the organization that will manage the property, and this usually occurs with condos, gated communities, or a subdivision. The HOA will have their own rules. Once someone purchases a property, they will become part of the HOA and will be required to pay HOA dues or fees.
Did you enjoy reading about real estate terminology? If you are interested in purchasing a vacation home, then you should consider looking in Mexico. At Villa La Estancia, we have beachfront homes that are spacious, luxurious, and finely furnished. Right now, we have properties in Nuevo Vallarta Nayarit and in Los Cabos. Plus, our unique hotel-condo concept property is highly sought out by people wanting to buy a home at the beach. Our homeowners enjoy the perks of having a beachfront home, and also enjoy exclusive access to resort quality amenities and services, too. Right now, we have a Try and Buy Program for qualified individuals who want to test out beachfront living before they invest. Contact us at Villa La Estancia to learn more about our luxurious beachfront residences available for purchase.