Smart Buyers vs Dumb Buyers Pt 2: What Can Go Wrong
What Can Go Wrong When Buying Real Estate in Mexico Without a Buyer’s Agent
Buying real estate in Mexico can be an exciting investment opportunity, but it can be full of risks—if you go at it alone. Check out the real world examples below for exactly what can go wrong. We can't share specific details, such as buyer's names, but rest assured that these unfortunate buyers were NOT represented by Mycasa Real Estate.
Many foreign buyers from the U.S. and Canada assume the process is the same as back home, only to run into legal nightmares, financial losses, and endless frustration.
From choosing the wrong representation to falling for deceptive online listings, here’s a breakdown of the most common mistakes and real-world examples of what can go wrong when purchasing property in Mexico without a buyer’s agent.
Don't get stuck in a bad situation scrambling to back-pedal out of a bad contract or piece of real estate. Work with one of Mycasa Real Estate's licensed agents and make sure youre on the right track from the very beginning.
TABLE OF CONTENTS
- 1: Working with The Wrong Agent
- 2: Being Ignorant of the Buying Process in Mexico
- 3: Searching online and Finding a Property Without Proper Due-Diligence
- 4: Picking a Random Attorney
- Other Articles About Relocating To The Riviera Maya
- What Are Clients Saying About Mycasa Real Estate?
1: Working with The Wrong Agent
Many foreign buyers unknowingly put their trust in an agent who doesn’t truly represent their best interests. In Mexico, not all agents are licensed, and developers’ sales teams work exclusively for the seller, not the buyer. Their job is to push their inventory—not to guide you toward the best investment.
Real-World Example: Overpaying for the Wrong Property
A Canadian couple recently purchased a pre-construction condo in Tulum, trusting the developer’s sales team to guide them. The agent assured them the unit would appreciate by 30% within two years. What they didn’t realize? The developer was offloading excess inventory, and nearby similar units were selling for significantly less. With no true buyer representation, they overpaid by nearly $40,000.
The Right Approach
Hire a licensed buyer’s agent—one who works for YOU, not the seller. A dedicated buyer’s agent ensures you’re getting a fair deal, negotiating on your behalf, and protecting your investment. Work with one of Mycasa's Licensed Agents and let us take the worry out of the process
2: Being Ignorant of the Buying Process in Mexico
Unlike in the U.S. and Canada, Mexico has unique property laws, additional costs, and legal requirements that foreign buyers must follow. Without a clear understanding of the process, you could end up losing time, money, or even ownership rights.
Real-World Example: Hidden Costs and Legal Surprises
An American retiree bought a beachfront home in Playa del Carmen, assuming that once he paid the purchase price, the home was his. However, he was unaware of additional closing costs (around 6-8% of the purchase price), fideicomiso (bank trust) fees, and capital gains taxes that would apply if he later sold the property. The unexpected expenses added nearly $25,000 to his total cost.
The Right Approach
Work with an experienced buyer’s agent who educates you on all legal and financial aspects of buying property in Mexico. They’ll ensure you understand the full scope of your investment, including taxes, closing costs, and required legal documents.
3: Searching online and Finding a Property Without Proper Due-Diligence
Many foreign buyers start their search on property listing websites, assuming they’ll find accurate, up-to-date information. However, in Mexico, there is no centralized MLS system like in the U.S. or Canada, which means listings are often outdated, duplicated, or outright fake.
Real-World Example: Fake Listings & Clickbait Prices
A couple from Texas saw a beautiful beachfront villa listed for $250,000 on a popular real estate site. They quickly contacted the “agent,” who pressured them into wiring a deposit to secure the deal. The problem? The property didn’t exist at that price—it was a bait-and-switch tactic. When they arrived in Mexico, they were told the actual price was $450,000, and their deposit was non-refundable.
The Right Approach
Avoid classified sites like Viva Anuncios, Inmuebles24, and other platforms full of unverified listings. Instead, use reputable real estate firms like MyCasa.mx, which provide legitimate, up-to-date listings with full video walkthroughs. More importantly, work with a buyer’s agent who can verify the legitimacy of properties BEFORE you invest. It's important to have up-to-the-minute information on prices and inventory before even making an offer. Looking for the Mexican equivalent of Zillow?
4: Picking a Random Attorney on the Internet
Many buyers assume that any lawyer can handle a real estate transaction in Mexico. However, working with the wrong attorney—especially one recommended by the seller or developer—can result in legal loopholes that put your investment at risk.
Real-World Example: Losing Everything Due to Bad Legal Advice
A U.S. investor purchased a condo in Cancun, trusting the developer’s in-house attorney to handle the transaction. The contract was written entirely in Spanish (which they didn’t fully understand), and the fine print allowed the developer to delay delivery indefinitely. Two years later, the building was still unfinished, and the investor had no legal recourse to get their money back.
The Right Approach
Hire an independent real estate attorney—not one recommended by the seller. Your buyer’s agent can connect you with reputable law firms like those listed below to ensure your purchase is legally protected.
Your dedicated buyer’s agent should be able to recommend a reputable attorney. Here are a few of the best firms in the region:
- Lighthouse Real Estate &Legal Services
- MexLaw
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Don’t make costly mistakes—buy real estate in Mexico the right way and let’s be neighbours soon!
Other Articles About Relocating to the Riviera Maya
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Relocation Guide 2024 (part 9): 10 Warning Signs
Relocation Guide 2024 (part 8): How much Does it Cost to Build
What Are Clients Saying About Mycasa Real Estate?
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"...and within 5 minutes, she called me." Leanne Knox. Google Review
"He is incredibly knowledgeable about the area, knows all the details about the property..." Claudia Ruiz. Google Review
"She listened to every single detail of what I was looking for in a property..." Kendra Mangana-Adams. Google Review
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