The pandemic may have slowed the world’s economy, but if there’s one bright side it’s the housing market. In most cities, homes are selling just as well as they did pre-COVID. In some affluent communities, home sales are actually increasing.
East Cape luxury homes, for example, are still in high demand. Sitting just 40 minutes from the tourist-crazed city of Cabo San Lucas, East Cape offers a calmer, quieter atmosphere that’s surrounded by the surreal beauty of the sea and mountains.
New resort communities like Costa Palmas offer unmatched luxury with its Four Seasons Private Villas and Four Seasons Private Residences. These East Cape luxury homes are just steps from the Sea of Cortez and come with the unparalleled hospitality that Four Seasons is known for. It’s this kind of remote and elegant property that buyers are looking for these days.
While an East Cape luxury home is sought after along Baja’s southernmost point, the buying process is a bit different right now. To make sure buyers pick the perfect East Cape luxury home during a pandemic, here are some tips:
Make a list of must-have features to narrow your search
During a pandemic, it’s not quite as easy to see dozens of homes before you buy. Sellers might be less flexible with viewings and there’s added risk of being around strangers inside closed spaces. It’s a good idea to narrow your search by creating a list of must-haves.
By doing so, buyers will limit the number of homes they need to see, and as a result, limit their exposure.
Be incredibly picky when it comes to selecting an agent
There are plenty of real estate agents who work in the luxury sector, but it’s important to do your homework. You want an agent with years of experience, a large network of peers, and vast knowledge of the area.
Ideally, your real estate agent will have a good list of pocket listings too. Pocket listings are those that aren’t listed publicly. These “quiet sales” are common in the luxury world, but it takes a reputable agent to bring these kinds of deals to your attention.
Finding an agent with solid references, great communication skills, and the ability to respond to your queries with immediacy should also be on your checklist.
Opt for virtual tours as a first look
Given social distancing requirements, it’s a good idea to arrange virtual home tours. Many real estate companies are already taking the lead on this and creating interactive video tours of homes. Zillow, for example, reports a 408% increase in agents using its 3D home tour feature.
Whether you watch a video tour or have a lone realtor walk you through a property while on FaceTime, a virtual walkthrough of a home is a good way to help narrow the search.
Understand the area and its future developments
Buying a luxury home usually comes with breathtaking views. A home nestled along the ocean dunes, for example, offers exquisite views but it could change if a new development pops up next year.
It’s important to not only know the area but to also know about future developments. A qualified real estate agent should be able to provide information in the area, but it’s a good idea to do your due diligence too.
Don’t exceed your budget
It’s not wise to exceed your budget at any time, but during a pandemic when the economy is weaker, it’s especially unwise. Luxury buyers usually come to the table with high budgets and more cash assets, but budgets can change with the stock market. Set a budget and stick to it.
Be prepared for competition
Inventory is always an issue in the luxury housing sector, but even more so in a pandemic. Some people are holding on to properties due to uncertain economic forecasts and others simply don’t want the hassle of sanitizing their home after every viewing.
For these and many other reasons, the amount of East Cape luxury homes to choose from might not be as vast as you’d like. Low inventory means competition.
When you put in an offer, there could be others interested. Luxury homes don’t usually get into bidding wars because they cater to an exclusive clientele, but things are different in this climate. Most homes are selling at or above asking price. Be prepared for a negotiation that trends up on the financial scale.
Sellers may look closer at your finances
Sellers have always wanted proof that a high-end buyer has the funds to complete the purchase. Given the economic stress caused by the pandemic, expect sellers to look a little closer than usual.
The seller will likely ask for a current bank statement that displays finances in detail. If the process takes some time, don’t be surprised if the seller asks for another up-to-date statement to make sure nothing has changed.
Cash purchases will motivate a seller more than a bank loan, but again, you’ll have to verify your assets before moving forward.
Consider travel guidelines before viewing property
With choices narrowed down, luxury home buyers will want to view the property. In some cases, the property is abroad.
A lot of Expats, for example, like to vacation in Mexico, which can fuel luxury home sales in Baja’s East Cape. If you’re planning to travel from the U.S. to Mexico, or to any country, be sure to take travel precautions.
Before you go:
- Review travel advisories for the country you plan to visit
- Research the number of COVID cases in your destination city
- Be aware of local mask mandates and social distancing rules
- Wash your hands frequently or use hand sanitizer during travel
- If possible, use private airports with fewer people and less waiting
- Plan to travel during off times like during the week to limit exposure
COVID-19 has changed a lot of things, but high-end buyers still have great opportunities to buy right now. Luxury resort communities that provide a tranquil getaway are particularly alluring, which is why so many people are interested in the freshly minted Costa Palmas resort in East Cape.