The current real estate market in Mexico offers a wide range of opportunities for real estate development projects. In addition, more foreign actors (both individuals and companies) are interested in investing.
Also, Mexican citizens tend to favor house ownership over rentals (nearly 60% of all Mexican households owned their homes in 2018), which can only strengthen the market’s stability in the long-term.
Now, if we add all these factors, it’s quite clear that the Mexican real estate sector is in full development. This led to an increase in house pricing with over 6.5% in the second quarter of this year.
As the demand is increasing, real estate agents and realtors will be among the most sought after people in the industry. Still, the rules to who can be a real estate agent and how are a bit murky, opening the door to incertitude on both sides.
So, if you’re not sure if your realtor is truly prepared or you want to become a broker and don’t know all the steps, we have the answers.
To Have Or Not To Have A Real Estate License
At a national level, the law doesn’t specify that real estate agents are required to have a license. However, there are Mexican states that made licensing mandatory for any professional in the field, starting with 2018.
As such, a real estate agent needs a license if they want to handle property in states such as Sonora, Coahuila, Tabasco, Baja California, San Luis Potosi, Campeche, Morelos, Veracruz, Querétaro, Quintana Roo, Guanajuato, Nuevo Leon, and others. Also, Mexico City requires licensed realtors.
While not all states require licensed brokers, all real estate professionals should take the necessary steps to get a license. As the market grows, it is expected that more states will make it mandatory, which may create a problematic situation for unlicensed professionals.
In addition, licensed real estate professionals have the chance to showcase their bio and attract more valuable customers (for more on this, here’s a guide to help brokers stand out from the crowd). Right now, international customers are the ones that will be asking for a license, but there may come a time when everyone will want an accredited professional.
The good news is that the states that require brokers to be licensed also offer specialization programs. This way, people don’t have to get licensed in the US or Canada (as it used to happen a few years back).
However, it’s important to know that, in the states that don’t pay that much attention to this aspect, buyers and sellers don’t have a recovery fund to cover real estate transactions that go bad. This can be a deterrent for foreign investors, especially since countries like Canada have special programs to encourage their citizens to invest in Mexican properties for vacation homes.
People appreciate the business and services of a qualified professional, so it will become more difficult to compete in such a fast-developing market. In addition, brokers should also consider becoming members of AMPI, the National Association of Mexican Real Estate Professionals. The AMPI has been functioning since 1956 and is considered one of the most reliable organizations in the field.
In the end, it’s not just about the need for a license. Buyers and sellers get pickier in choosing who handles their property, so the only way to grow is with the right connections and certification.