Attracting investors and buyers for Baja, Mex real estate?

[John H]

It seems that the combination of a poor U.S. economy combined with misinformation about the dangers of drug violence is really affecting business in Baja.

We own property free and clear in Los Barriles, but it's no longer enough to just list a piece of property through a RE agent in order to make a sale. How, or where, do we find buyers and investors who are savvy enough to realize the huge opportunities available?

[Scott Hubbard]

Originally posted by John H:

It seems that the combination of a poor U.S. economy combined with misinformation about the dangers of drug violence is really affecting business in Baja.

We own property free and clear in Los Barriles, but it's no longer enough to just list a piece of property through a RE agent in order to make a sale. How, or where, do we find buyers and investors who are savvy enough to realize the huge opportunities available?

If agents are not getting it done, chances are there are major hurdles that you need to overcome. Real estate values have been beaten down in Mexico, not just by the media and the negative publicity from the drug cartels, but also because the economic in the US and abroad.

The first step is to identify why your market lacks buyers and then try to address the problem. Sometimes it can be fixed and others times it cannot. Bad publicity is difficult to overcome near term and patience may be your best ally. However, I have some suggestions below and hope they help.

Trends are changing. Several years ago people were buying vacation homes as investments, now they are renting vacation homes or staying in hotels and resorts in an effort to cut expenses. Simply put, there is no incentive for buyer's to stick their necks out and buy a vacation home while in the prices are falling. If people believe there is value in buying, then you have a better chance of selling.

1. Look to the Los Barriles market to see if there are any successful sellers there. If so, take notice of the strategies they are using and incorporate them. If not, then you may need to go outside your market to see find some successful sellers.

2. Talk with buyer's agents who have recently sold property there. Find out what buyer's are looking for in particular.

3. Offer incentives: Perhaps you can offer incentives like build to suit, furniture packages, seller financing, legal concessions, etc.

4. Get prospective buyer's down there. To do this, you may need to offer free accommodations. You should work through pre-qualified leads since you do not want looky lou's.

5. Create your own brochures and website which should focus on the positives about buying in Mexico, but you may want to dedicate a small section to address the misinformation about violence. In the website, you can create a forum and invite current U S owners of RE property in Mexico to share their experiences.

Selling property is really a numbers game. The more people who see the property, the better your chance in selling.