Expat's Experience Buying a House in Mexico

Can you tell us a bit about your background and how you ended up exploring Oaxaca, Mexico?

My name is Donna Shields, and I’m an expat living between Key West, Florida, and Oaxaca, Mexico. After a successful career in the corporate world, I decided to embark on a new adventure – a three-month motorcycle journey through Mexico in 2022. This trip took me to over 30 different towns and cities, and it was during this time that I fell in love with the vibrant culture, stunning landscapes, and welcoming community of Oaxaca.

What was it like exploring Oaxaca by living in different neighborhoods?

Renting in Oaxaca is quite different from the United States. During my eight-month stay, I rented five different places, each in a different neighborhood, to really get a feel for the city. This allowed me to immerse myself in the local culture and understand the unique characteristics of each area. I discovered that Oaxaca offers a diverse array of neighborhoods, from the bustling city center to the more tranquil, artsy enclaves. By living in various parts of the city, I was able to find the perfect fit for my lifestyle and preferences.

A Motorcycle Trip to 30 Cities in Mexico

When I agreed to a three-month motorcycle journey through Mexico, I wasn’t quite sure what I was getting into. Rough roads, tools for all kinds of repairs, and the thrill of discovering new places – it was an adventure like no other. My Motorcycle Adventure Through Mexico was a true test of my resilience and adaptability, but it ultimately led me to the charming city of Oaxaca, which I now consider a second home.

Exploring Oaxaca Neighborhoods by Living in Them

After my motorcycle trip, I decided to settle in Oaxaca and explore the city more thoroughly. Finding A Part-Time Home in Oaxaca became my mission, and I spent eight months renting in different neighborhoods to get a feel for the city. This allowed me to discover the unique characteristics of each area and find the perfect fit for my lifestyle.

Surprising Secrets: 7 Things You Need to Know Before Buying a House in Mexico

1) There’s no MLS

One of the biggest differences I encountered when looking to buy a house in Oaxaca is the lack of a centralized real estate listing system, like the MLS (Multiple Listing Service) we’re accustomed to in the United States. Instead, it’s a needle-in-a-haystack process, where buyers must contact multiple realtors and scour local Facebook pages to find properties for sale. This requires a lot of legwork and persistence on the part of the buyer.

2) The price of the same house can vary depending on the realtor

Another surprising aspect of the real estate market in Oaxaca is that the same property can be listed at different prices by different realtors. Unlike the standardized process in the US, where prices are typically consistent across listings, in Oaxaca, realtors may consider a buyer “their customer” simply because they showed them a property. It’s crucial to work with multiple realtors and be clear that you are not exclusive to any one of them.

3) There is no licensing for realtors

In Oaxaca, anyone can call themselves a realtor, and their level of knowledge and expertise can vary greatly. This means that as a buyer, it’s critical to have an attorney specializing in real estate who can thoroughly research the property before you sign a contract. Some properties in Oaxaca are “communal,” which can come with a variety of obligations for the buyer that you’ll want to be aware of.

4) Renovating can be a bigger headache than you think

As experienced house flippers in the US, my partner and I are quite familiar with the renovation process. However, we’ve been hesitant to take on a major renovation project in Oaxaca for a few key reasons:

Without being fluent in Spanish, directing and managing a construction crew is extremely challenging, not to mention the specialized vocabulary needed for construction work.
The permitting process is quite different from what we’re used to in the US. While there is less red tape, the standards for electrical and plumbing work may not meet our expectations.
There is no such thing as a home inspection in Oaxaca, so it’s truly a case of “buyer beware” when it comes to the condition of the property.

5) Buying a Mexican property means you likely need a Mexican will

Whether you’re purchasing an investment property or a full-time or part-time home in Mexico, it’s essential to protect your asset by having a Mexican will. The will or trust you may have in the US does not extend to assets you own in Mexico, so it’s crucial to have a Mexican will in place once you’ve completed the purchase.

6) Work with a translator with real estate experience

When navigating the real estate process in Oaxaca, it’s crucial to work with a translator who has specific experience in the real estate industry. These translators not only provide language assistance but can also serve as valuable consultants, guiding you through the necessary steps for permits, notaries, and other important details that you may not be aware of as a foreign buyer.

7) Buy a property with a very big cistern

Water shortages are a real and increasingly common issue in Oaxaca, so it’s essential to look for a property with a large cistern, ideally at least 10,000 liters in capacity. Additional water storage tanks on the property are also a significant plus. During the dry season, water delivery from the city can be sporadic, so having ample water storage capacity is crucial to ensure a reliable water supply. Buying a house in Mexico, and specifically in Oaxaca, is a unique and rewarding experience, but it comes with its own set of challenges. By being aware of these seven key considerations, you’ll be better prepared to navigate the real estate market and find the perfect property to call your own. And if you’re looking for more comprehensive guidance on moving to Mexico, be sure to check out the Mexico Relocation Guide. Support this channel by buying me a margarita over at Buymeamargarita.