Why Some Cabo Properties Sell in 30 Days While Others Sit for a Year

One of the biggest questions sellers have in today's Los Cabos real estate market is simple: Why does one property sell almost immediately while another sits on the market for nine months, a year, or even longer?

More often than not, the answer starts with price.

That doesn't mean giving a property away. It means understanding what buyers are willing to pay today and positioning the property accordingly from the beginning.

Buyers Are More Price-Conscious

A few years ago, buyers searching for properties under $800,000 might regularly look at homes or condos listed for $1 million or even $1.2 million.

We're seeing much less of that today.

Buyers are using specific search parameters and increasingly staying within them. If they've decided their maximum budget is $800,000, there's a good chance properties listed significantly above that number will never even appear in their search.

That makes the initial list price extremely important.

A property priced correctly can generate immediate showings, serious interest and potentially multiple offers. A similar property priced $50,000 or $100,000 too high may receive very little activity.

The danger is that the seller eventually reduces the price anyway—but only after the listing has been sitting on the market for months.

Overpricing Can Create a Race to the Bottom

There is a common misconception that sellers should "start high because we can always come down."

Sometimes that strategy works. Often, it doesn't.

The first few weeks that a property hits the market are important. It's new inventory. Buyers notice it. Agents notice it. People who have been waiting for the right property are likely to take a look.

If those buyers immediately conclude that the property is overpriced, much of that initial momentum disappears.

The seller then reduces the price.

And possibly reduces it again.

Eventually, buyers start asking a different question:

What's wrong with this property?

Ironically, the seller who originally wanted an extra $50,000 may eventually accept less than they could have received by pricing the property correctly from day one.

Not Every Seller Needs to Sell

Los Cabos is also different from many traditional residential markets because it's heavily influenced by second-home ownership.

Many owners don't have a mortgage forcing them to sell. They aren't necessarily selling one home because they need the proceeds to purchase another.

For some owners, the attitude is simply:

"If somebody pays my price, I'll sell it."

There's nothing inherently wrong with that strategy.

But sellers need to understand the difference between testing the market and actually pricing a property to sell.

If you're intentionally testing a higher price, there should ideally be a plan in place. For example, if the property doesn't generate meaningful activity within 60 or 90 days, you may agree in advance to reposition it.

That's very different from listing at an unrealistic number indefinitely and hoping someone eventually comes along.

The Market Doesn't Care What You Paid

One of the hardest realities in real estate is that the market doesn't determine value based on what an owner paid, what they spent on furniture or renovations, or how much profit they would like to make.

Buyers compare your property with everything else they can purchase.

If your condo is listed for $750,000 and buyers believe there are three better options at $675,000, those other properties become your competition.

That's why pricing should be based on more than a handful of active listings.

You need to understand:

• What has actually sold

• How long properties are taking to sell

• Current competing inventory

• Recent price reductions

• Buyer search activity

• The property's condition and furnishings

• Location and community

• View protection

• Amenities

• Seller motivation

The objective isn't necessarily to be the cheapest property.

It's to make the property make sense compared with the alternatives.

The Best Pricing Strategy Starts Before the Listing Goes Live

A good listing strategy should involve an honest conversation before the property ever hits the market.

What is the property realistically worth?

How quickly does the owner want to sell?

What properties will buyers compare it against?

And what happens if the market doesn't respond?

The seller and agent should be on the same page from the beginning.

Because ultimately, getting a listing isn't the goal.

Selling it is.

Thinking About Selling Your Cabo Property?

Before deciding on a list price, get a realistic look at what buyers are searching for, what's competing with your property and what comparable homes are actually selling for.

Mitch McDonald
REmexico Real Estate
mitch@caborealestate.com

Alejandro Donnadieu
REmexico Real Estate
alejandro@caborealestate.com