YOUR HOME AT LAKE CHAPALA


Tips for buying or selling real estate.

Maria Di Paola Blum

The Lake Chapala area has been for many foreigners an ideal location to visit and to enjoy life. In the 50's and 60's artists, mainly writers, and painters found it ideal for inspiration. We have now the monument of Pepe Guizar testifying this statement at the gates of Chapala!

In many cases, its climate and the beauty of its scenery kept those guests by the lake until their final days. Now, the majority of Lake Chapala's foreign residents are persons from the U.S., Canada, France, Italy, and Germany, who come here to retire, and also many "tapatíos" who prefer the alternative life-style of the Lake area to what Guadalajara has to offer them.

This fact has caused an important housing development and an incredible growth in the real estate market. When I arrived here ten years ago, for instance, there were five real estate agencies and only three of them were to be found in the yellow pages.

Now there are 30 real estate agencies, and each one of them provides the potential clients with experience and the knowledge of the area, which become very useful for them in the process of moving from their country of origin to the Lake Chapala area.

Right now, a person who comes to Chapala looking for a house, has three options here:

1) The For sale By Owner deal.
2) To deal through an independent real estate agency which uses de services of EMLS (Electronic Multiple Listing System emls.inf).
3) To deal through one of the 19 real estate agencies affiliated to the so called GIL (Grupo Inmobiliario del Lago), an association which uses the MLS (Multiple Listing Service, www.mlsmexico.com) as its main marketing tool.

The first option is chosen by those who want to "save" on the commission which is 7% plus IVA (Value Added Tax) in the agencies affiliated to Gil, and from 3 to 5% in the others. Those who choose this first option, either feel confident of their real estate experience or of their building and legal knowledge so as to avoid being surprised by fraud sellers, false titles or faulty houses with a beautiful "make up" for the "sale-show".

In general, foreigners are suspicious about for sale by owner deals in this area and only about 10% of the total sales are completed this way.

The second option, which is growing swiftly, is chosen by buyers who establish a relation of confidence with one of the six agencies who prefer to stay independent: Home-net, Action, Ajijic Excellence, Lakeside Homes, Paradise, Latitude North, Sierra Vista. Although the majority of buyers prefer to be able to chose between all the properties listed by the 24 agencies affiliated to GIL, this group of independent agencies is growing because of their friendlier rules and their lower commissions.

Up to October of this year many of the so called independent agencies ended up joining the GIL to benefit from the MLS. As of November of this year, with the appearance of EMLS there are new prospects of growth for these companies. It is in fact a second option of a database of properties which will be available to the potential buyers as an alternative to the MLS, but with lower commissions. This option will be available to developers, real estate agencies, etc., and to all prospective buyers.
To become a member of EMLS you have to pay a one time fee of 10,000.00 mexican pesos, plus a maintenance fee of 50.00 pesos every four months for each listed property. If you have more than 100 homes listed you pay 30.00 pesos instead of 50.00

If a homeowner wants to list his home in the EMLS, either as an exclusive listing or as "for sale by owner", he must do it through one of the affiliated companies.
When you visit the EMLS page browsing for properties you can see what kind of commission the listing person is offering for each property. Currently there are 69 properties listed in the EMLS,compared to the 674 listed in the MLS.

The third option has been the most common up to nowin the area, either for buyers or for sellers of real estate. You go to one of the 19 agencies affiliated to "Grupo inmobiliario del Lago" and look for your ideal house or list yours for sale giving the exclusive sale option to the agency of your preference.

In this option, whoever looks for a house will find all the houses currently for sale by all 19 members of GIL in the Multiple Listing Service which they use, even if the house has been listed by an agency different from the one he chose. The service is very well structured, and shows the potential buyer about 70% of the total number of houses for sale in the area.

The associated agencies will share the commission in case one agency has the exclusive listing and another one sells the property, and the client obtains his house fast.
All agencies affiliated to MLS charge the same commission to the seller: 7% plus tax.

An agency must belong to GIL in order to be able to use the MLS, which is the main marketing tool of GIL.
MLS is an internet database of properties for sale in the area. It is an independent company that gives exclusive service to the companies affiliated to GIL. Currently there are 674 properties listed for sale in MLS.

GIL was incorporated as a Civil Association through the initiative of Enrique Rojas (Century 21) back in 1991. Ricardo Tingen (Caldwell Banker)was its first President. Beverly Hunt (Laguna Real Estate), and Norma Ofelia San Miguel were cofounders of the association which has become the most important real estate group in the area.

To start a new company as member of Gil and MLS you must pay a fee of 50,000.00 pesos. From then on, each one of your agents pays 10,000.00 pesos for his or her affiliation.

All members of Gil abide by the rules that have been perfected with time: same commission, only exclusive for sale contracts, no "ejidal" land for sale, and no pocket listings.