5 QUESTIONS YOU SHOULD BE ASKING YOUR REALTOR
Having been in the real estate industry for more than 15 years now, I have faced my fair share of questions. Some questions are extremely intelligent, while others are seemingly witty and well, some are simply strange… So what are the right questions to ask your agent and why should you be asking them?
1) Are you a licensed real estate agent?
I cannot stress the importance of working with a licensed real estate professional to guide you through the buying process. Although the times are changing, there are still many unlicensed real estate agents operating in Mexico. Ideally, you want to look for an agent who has a license in both the country they belong to, for example, USA (NAR) or Canada (CREA) along with one from a Mexican association such as SEDUVI, AMPI, and AMII. This verification ensures that you are being represented by a professional who has proper training and is aware of the buying process. The laws and regulations that are specific to Riviera Maya significantly differ from many other parts of Mexico. A registered real estate agent will ensure that the necessary steps are taken before, during and after the real estate transaction is complete.
“If I had an hour to solve a problem and my life depended on it I would use the first 55 minutes determining the right questions to ask.”
Albert Einstein
2) What is your real estate experience?
Even if your realtor is licensed, they may still be inexperienced. One may think an agent's experience is determined solely by how many years they have been in the business. In reality, it is much more than just that, especially here in Riviera Maya. You will want to choose a realtor who is a seasoned veteran in this specific market. An experienced realtor will be aware of the lay of the land, hot spots, new and upcoming developments and will have an established track record of sales. They will be able to steer you away from problematic properties, areas, and developers. They have been around long enough to see who is delivering their promises and who is overselling.
Most importantly, experienced realtors have established relationships with developers, over the course of time. Developers offer me special deals for my clients; deals that are not offered to the other agents and agencies in the area. This can save you X amount of dollars or allow you to get an early foothold on friend and family deals before they are made open to the public. Remember that when you are working with a professional who has dedicated the last ten years of their life to a real estate career you know, they will always be around and hence available to you. Riviera Maya is a very versatile market for realtors, and you do not want to be left hanging by a rookie agent who needed to earn a couple of bucks to go traveling. Here is a fun fact: 70% of new real estate agents leave the profession within the first 12 months of entry into this profession.
3) How will you keep me informed and how often?
While purchasing real estate abroad or at a national level, you will want to stay informed throughout the process. When you are actively searching for real estate, you will need someone with boots on the ground and someone who is just a phone call away. They need to have your best interests in mind and keep you informed at all times. It is essential that your agent fully understands your goals from day one. The clearer you are with your selection criteria, the better it is for all parties involved. Communication is the number one factor in making you feel at ease throughout the buying process. When purchasing property in Mexico, there are formalities that you may not be accustomed to and timetables that may either be faster or slower than your state of residence. The communication between you and your agent will be the primary factor in ensuring a transparent and smooth experience throughout the buying process. Transparency should start from day one of your search and continue to follow up after the transaction has been completed. (refer to What is your realtor agent responsible for?) You should take notice of your agent’s attentiveness, tendency to follow up and attention to detail and should proceed only if it meets your standards. (refer to What to look for in a real estate agent)
4) Can you send me a reference from one of your previous clients?
After you have asked the above questions and feel comfortable moving forward with your agent, you should proceed to the next step and ask for references. They should have no problem in handing over a few names and numbers to you. Your agent should first ask permission from their clients before providing their contact information to you. From my experience, past clients are more than happy to talk about the service received from their realtor. Such clients will be able to tell you how the agent performed through the sales process, their pre and post sales follow up and what their overall experience was like with the agent. They will be able to answer questions related to accessibility, punctuality, reliability, and communication.
5) What returns are your clients currently seeing?
Now that you have asked the right questions to ascertain whether your realtor is experienced, you have spoken to their previous clients and have received positive reviews, the next question you must ask your agent is what returns their clients are currently seeking. This will give you a good idea of realistic returns as opposed to projected returns. The estimated returns must justify your investment decision with rental history, occupancy rates and NET returns on investment. You will want to ask your agent to put you in touch with their clients who have an investment strategy similar to yours as per the following criteria:
- · Location
- · Purchase Price
- · Number of days used by Owner
- · Time of the year used by Owner
- · Long term or Vacation Rentals
From my experience, when you speak to a previous client, they open up like a book. However, you don't want to be too intrusive with your queries. I would stick to asking questions that will give you approximate figures, as people are typically a bit reserved when it comes to their finances.
Try asking questions like: :
- · What is your average annual occupancy?
- · What ADR (Average Daily Rate) is your property yielding during peak season?
- · What ADR is your property yielding during low season?
- · Are you receiving the returns that were projected at the time of purchase? Is it more or less than what you were promised?
Now the ball is in your court. Go out there and find yourself an excellent realtor and a great rental property.
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Ryan Gravel
Ryan Gravel is an American real estate broker and developer. He began his career at a young
age working for his family owned construction company.
After graduating college at the University of Central Florida with a degree in business,
Ryan set out to find untapped prolific markets around the world. His search landed him in
Playa del Carmen, Mexico where he founded Virgin Realty Mexico and co-founded the Saatal
Development Group one of the fastest growing development companies in the Riviera Maya.
With extensive market knowledge, professionalism, etiquette, innovation and integrity Ryan
is known as one of the most highly respected real estate advisors in the region.
