Pre-Construction Real Estate in Cabo: What Buyers Need to Know

Buying pre-construction in Cabo can be an excellent strategy to secure a property at a discount, but it’s very different from purchasing a completed home or condo. The entire model depends on sales momentum—developers need ongoing sales to drive prices upward as the project advances, which in turn rewards the early buyers who took the initial risk. This dynamic creates a unique set of challenges for both buyers and their agents.

With a completed property, the process is fairly straightforward. You can walk through the home, review the title, request a certificate of no liens, hire an inspector, even review rental history if it’s an investment unit. Everyone knows what they’re getting, and payment is usually received promptly at closing. Pre-construction is a very different experience: buyers are committing to something that hasn’t yet been delivered, which requires a great deal of trust and ongoing communication.

This is why developers often offer higher commissions to the buyer’s agents who bring clients to these projects. The truth is that 80% or more of pre-construction sales in Cabo come from outside agents. While the listing agent markets the project, most buyers are introduced by independent agents. These agents, however, shoulder the bulk of the work: keeping clients updated, visiting the site, answering questions about construction, helping coordinate finishes or furniture packages, and dealing with inevitable delays. It’s not uncommon for an agent to make eight to ten trips to the site over a two-year delivery period—work that continues well after the contract is signed.

Unfortunately, many developers don’t communicate effectively with buyers. In my experience, if an agent doesn’t stay involved until key delivery, clients can easily feel left in the dark. I’ve even taken over client updates for certain projects simply because the developer’s communication was so poor—and that alone generated new leads. Closing attorneys will sometimes refuse pre-construction transactions because they don’t want to deal with angry buyers upset over delays or last-minute changes, such as higher HOA fees, unfinished amenities, or units that don’t meet expectations for view or quality.

Since COVID, pre-construction in Cabo has faced new headwinds. Prices have risen, so the “discount” at the presale stage is smaller than before, and the delays and frustrations have grown. Many experienced agents who once specialized in pre-construction are shifting their focus back to resale properties, where the process is cleaner and clients are less likely to encounter surprises.

For buyers, this means two things: first, be highly selective when considering pre-construction. Investigate the developer’s track record and ensure you have an agent who will represent you through to delivery—not just at the time of signing. Second, don’t assume pre-construction is always the better deal; in some cases, a resale property offers more certainty, less stress, and comparable value.

If you’re exploring pre-construction opportunities in Cabo and want guidance in choosing the right project—or simply weighing the benefits against resale—reach out to Fletcher Wheaton at fletcher@remexico.com. Having the right advocate makes all the difference in navigating Cabo’s fast-moving market.