Buying property in Puerto Vallartas and the Riviera Nayarit area is an exciting opportunity, and pre-sale properties are often a great way to secure your dream home at a lower price. We sat down with Alvaro Pezoa, a Vallarta area realtor from Coldwell Banker, to get the inside scoop on the advantages, risks, and what buyers need to know before diving into the pre-sale market.
- Q: What are the main advantages of buying a property in pre-sale?
- Q: What risks or disadvantages should a buyer consider when purchasing a property in pre-sale?
- Q: How much can you typically save when buying in pre-sale compared to a finished property?
- Q: How is the buyer’s investment protected in a property that hasn’t been built yet?
- Q: What guarantees or insurance do developers offer when buying a pre-sale property?
- Q: What happens if the project isn’t completed or there are design changes?
- Q: What’s your overall advice for someone considering buying pre-sale?
- Connect with Alvaro
Q: What are the main advantages of buying a property in pre-sale?
Alvaro: Buying a property in pre-sale can be a great opportunity! The biggest advantage is the price—you usually get a better deal before the property is completed. As the property gets closer to being finished, its value tends to go up, so you could end up with some nice appreciation by the time you’re ready to move in.
Plus, pre-sale buyers often have more choices, like selecting the best location within the development. Some developers also offer flexible payment plans, which makes it easier to budget and plan.
Q: What risks or disadvantages should a buyer consider when purchasing a property in pre-sale?
Alvaro: There are definitely a few things to watch out for. First, construction delays are always a possibility—things might not be finished on time. Sometimes, the final product may look a little different from what was originally promised, especially in terms of design or finishes.
And while rare, there’s the risk of a developer running into financial trouble. That’s why I always recommend doing your homework: choose a reputable developer with a solid track record and read the contract carefully before signing.
Q: How much can you typically save when buying in pre-sale compared to a finished property?
Alvaro: It really depends on the area and the project, but you can often save between 5% and 30%. Since you’re buying before construction is completed, you’re locking in a lower price than what the market might be by the time the property is finished. It’s like getting in early on a great deal!
Q: How is the buyer’s investment protected in a property that hasn’t been built yet?
Alvaro: The good news is that there are legal protections for buyers. Developers are usually required to provide guarantees or insurance to ensure the property is completed. Contracts typically include timelines and penalties if things don’t go as planned.
So while there’s always a bit of risk, these safeguards are designed to protect your investment and give you peace of mind.
Q: What guarantees or insurance do developers offer when buying a pre-sale property?
Alvaro: Most developers offer warranties for new construction. For example, there’s typically a 10-year warranty for structural issues and shorter warranties for things like finishes and appliances. This means that if something goes wrong after you move in, you’re covered.
Q: What happens if the project isn’t completed or there are design changes?
Alvaro: If the project isn’t completed or the design changes significantly, the contract should outline what happens next. It might include options like compensation, adjustments, or even a full refund in some cases.
This is why understanding your contract before signing is so important. You want to be sure you’re comfortable with the terms and that there’s a clear plan for handling these situations.
Q: What’s your overall advice for someone considering buying pre-sale?
Alvaro: Pre-sale properties offer a unique opportunity to secure a brand-new home at today’s prices while benefiting from long-term appreciation. With modern designs, energy-efficient features, and the ability to customize certain aspects, it’s a smart investment for buyers looking to build equity and enjoy a home tailored to their needs.
However, the key is preparation: choose a reliable developer, understand your contract, and have realistic expectations about the timeline. If you do that, buying pre-sale can be a great way to invest in your future.
Connect with Alvaro
If you’re thinking about buying a pre-sale property in Riviera Nayarit or Puerto Vallarta, follow Alvaro on social media for the latest insights and listings:
Have more questions about buying property in the area? Let us know in the comments below, and we’ll get you the expert advice you need to make your dream home a reality!
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