Took advantage yesterday of a beautiful day to visit Punta Sayulita, a new land and home development that’s situated just south of Sayulita. And as the seas were calm, decided to go by jetski from Punta Mita. It was a great trip as this an amazing part of the Riviera Nayarit coastline. There are some beautiful homes built on the cliffs here and tucked into a very green jungle landscape.

When we arrived we anchored the jetskis and swam in to the beachclub/presentation room for Punta Sayulita, which is located right on the beach next to Don Pedro’s in Sayulita. They have beach chairs set up, a great lounge area under a palapa roof with a bar, and plenty of information about the new development. They have kayaks, surfboards and paddleboards, so if you want to spend a day at the beach and also become familiar with a great new real estate development, keep this in mind.

Punta Sayulita is being developed by Brett Ellsworth and Kevin Roberts of Contact Development Company (CDC). They have been active in Mexico for many years, primarily as real estate consultants. But a few years ago they decided to get into the development game and Punta Sayulita is their first project.

Punta Sayulita consists of a point, lush with jungle, that juts out into the Pacific just south of Sayulita, offering both northeasterly views up the coast  and back to Sayulita, plus all the way around until you are facing southerly towards Punta Mita. The elevation is steep, so there are great views available. The beachclub village is unique, a central gathering spot for owners with a gym, restaurant, pool and bar and sports facilities. There are two types of homes they will be building, Casitas and Casas, offering very nice floor plans and a style that will fit in well to the jungle landscape. There are also a few choice lots available on the very point. They start the infrastructure in January, but for now there are trails to follow to see the lots that have been roped in so you can see their size and views (but take good walking shoes!).

They have now begun their sales launch and you can find more information by visiting their beachclub in Sayulita or on their website, www.puntasayulita.com. Sayulita’s always fun to visit, this just gives you one more reason!

Before heading back we had lunch at Don Pedro’s – as good as ever! A big of a chop heading back, but the wind was with us, so it was an enjoyable trip.

We’ve been working on an upgrade to our MLS Search, featured at MLSVallarta.com, for the past few months and its now ready to go live.

We’ve built it around Google Maps, which is definitely the best and most accurate mapping system for the region. You’ll find properties from Multi-List Vallarta (the re-sale MLS) and Multi-Dev Vallarta (the pre-sale or new properties MLS) included. We also have a view to see just developments; where they are located and what amenities and features the property has. You can click on the full information view to see more photos of the development and see its current inventory.

We’ve also cleaned up our Puerto Vallarta and Riviera Nayarit Maps and Regions page, with descriptions, photos and maps, outlining the borders of each region, on the website as well. And our Articles section features more articles about real estate than you’ll find anywhere else.

Building on this new platform allows us to improve it in many ways going forward. And this is now the most comprehensive and most sophisticated MLS Search available in Mexico, for any destination.

The next update will have an Advanced Search feature, allowing to refine your searches even more. For realtors that are members of  Multi-List Vallarta, we are also updating some features in the Member’s Only section. We’ve increased the map size, so its much easier for you to pinpoint where your new listing is located. And we will be adding this week another feature that calculates Average Listing Price and average Cost per Meter. We certainly welcome comments and suggestions.

Jim Scherrer, a Vallarta homeowner (and fan of PV) since 1984, is now also involved in real estate and has written more than 70 articles about real estate in Puerto Vallarta over the past couple of years. Here’s one of his most recent articles that provides some positive benefits for Canadians interested in real estate in Vallarta:

For more than 50 years, the de facto world currency has been the US dollar with many of the world currencies being pegged against it (some countries have even eliminated their own currencies in favor of the US dollar). As an example, Canadians feel a sense of wealth when the Canadian dollar is on par with the US dollar; the opposite when the Canadian dollar devalues to .70 US dollar, i.e., when the Canadian dollar will purchase only 70 cents worth of US goods and services. The following graph shows how the Canadian dollar has strengthened from $.77 US to $.96 US or by 25% during just the past seven months.

(Click on images for better viewing) Currently, the global economy is changing and as the US dollar continues to erode, many foreign currencies have strengthened significantly relative to the green back. Consequently, savvy Canadians should now be looking at currencies outside of the US and evaluating their own newfound purchasing power in those foreign countries. For instance, the Canadian dollar has virtually exploded in value recently relative to the Mexican peso. The graph below depicts how the Canadian dollar has risen in value from an equivalent of 7.1 Mexican pesos in 2003 to 12.6 pesos today in 2009.

Now, let’s compare this increase in the purchasing power of the Canadian dollar to the increase in purchasing power of the US dollar, both relative to the Mexican peso. The graph below clearly shows that during this 6 ½ year time frame the US dollar increased in value by a bit more than 20% relative to the Mexican peso whereas the Canadian dollar increased by a whopping 75%!

It’s quite understandable, that toward the end of 2007 when the Canadian dollar reached par with the US dollar, the Canadians were major buyers of real estate in Mexico. However, by March of 2009, the Canadian dollar had slipped to a low of $.77 US and Canadian buyers were virtually eliminated from the Mexican real estate market.

Next, let’s closely review the Canadian and US dollars relative to the Mexican peso during the past year. Because the recent strengthening of the Canadian dollar has far outpaced the US dollar relative to the Mexican peso, you’ll see that during the past year, the US dollar has barely appreciated in value over the Mexican peso while the Canadian dollar has exploded in value by nearly 25%. The ramifications that this phenomenon has had on the Canadian purchasing power in Mexico are addressed below.

During the past decade many tourist zones and retirement havens in the resort areas of Mexico experienced exponential growth. Along with this growth came significant real estate price appreciation; so much so that real estate prices in many Mexican resort cities were no longer within reach of many Canadian retirees, especially when the Canadian dollar plummeted in value in 2008. Well, we have good news for you fortunate Canadians holding those wonderfully strong Loonies; that’s no longer the case!

In Puerto Vallarta, real estate prices of recently built condos have dropped by anywhere from 20-35% during the past year alone. This reduction in value was caused mainly by the global recession, however the swine flu scare and the media hype over the border town drug war (1,200 miles away!) were also contributing factors. With the tremendous glut of unsold new condos recently introduced to the market by developers combined with the many condos that were purchased at pre-construction prices by speculators now just trying to recover their investment, PV is a true buyer’s market.

Last year you could buy a $400,000 condo with all the amenities and breathtaking views for 10% off list price or for $360,000. Today, you’ll have no problem finding that same condo offered at $300,000. Okay, that seems like a pretty nice savings of nearly 17% but remember, these Mexican condos are all priced in US dollars; Canadians must now evaluate these costs in terms of Canadian dollars! A year ago when the Canadian dollar was worth $.77 US, $360,000 US dollars was equivalent to $468,000 Canadian dollars. Today, with the same condo selling for $300,000 and the Canadian dollar worth $.96 US, it will cost only $315,000 Canadian dollars. That’s a savings of $153,000 Canadian or 32.7% (as opposed to the apparent 17%) in just one year!

Until as recently as 4 years ago there were no mortgages available to any North Americans buying resort property in Mexico. At that time, a number of US based mortgage companies introduced mortgages to US citizens buying property in Mexico but not to Canadians. That all changed a couple of years ago when the major mortgage companies finally made the same mortgages available to Canadians. These fixed and variable rate mortgages require at least 20% down and can have terms for as long as 30 years at rates generally about two points above those in the States or at approximately 7% at this time.

It is the opinion of many that the Canadian dollar will continue to strengthen. After all, the Canadian banks didn’t make all the foolish sub-prime no-doc loans that were made in the US, the Canadian unemployment rate is somewhat less than in the US, and Canada is rich with natural resources with worldwide demand. Knowing this, it seems only logical that having a mortgage in Mexico based on US dollars would be a very wise investment; it would be paid off with ever strengthening Canadian dollars.

Let’s assume we bought that condo for $300,000 US ($315,000 Canadian) and made a down payment of $100,000 US ($105,000 Canadian). A 30 year fixed rate 8% mortgage of $200,000US would result in payments of $1,467/month US ($1,528 Canadian). Of course, if and when the Canadian dollar again reaches par with the US dollar, your payments will be reduced from $1,528 to $1,467 Canadian. Now, let’s get a little aggressive and assume the Canadian dollar will reach $1.05US. At that exchange rate, your monthly mortgage payments would drop to $1,397 Canadian. It’s not too far a stretch to predict an annual savings of $2,000 Canadian or more based solely on the exchange rate differential. Of course, if the Canadian dollar were to plummet for some unforeseeable reason, these mortgages can be paid off after 2-5 years (depending upon the loan) with no pre-payment penalty.

Finally, let’s evaluate the cost of living in Mexico. For starters, let’s assume that a year ago we were considering a lifestyle in Vallarta based on a budget of $10,000 pesos per month. With the annual inflation rate in Mexico of 5%, the same goods and services in Mexico will be $10,500 pesos this year. A little more than a year ago, when the Canadian dollar would purchase 9.5 pesos, $10,000 pesos was equivalent to $1,052 Canadian. Today, with the favorable exchange rate of 12.7 pesos per Canadian dollar, the $10,500 peso budget will cost a mere $827 Canadian, i.e., a savings of $225/mo or a 22% reduction in the cost of living in just one year!

In summarizing, it’s obvious that the time has never been better for Canadians to explore the opportunities that exist in Mexico today. International monetary circumstances are ideal for Canadians concurrently with the condo supply and demand equation in Mexico heavily tilted in favor of the buyer. In terms of Canadian dollars, you can expect to find incredible condos at 30-35% lower prices than just a year ago and your cost of living will be 20-25% less than it was a year ago.

Of the nearly 50,000 expats living in Vallarta, we estimate that close to 30% of them are Canadians. Needless to say, the winter weather in Puerto Vallarta is more conducive to most outdoor activities (excluding snow boarding and ice hockey!) than anywhere in Canada. So, why hesitate? Come on down this winter and have some fun in the sun with your fellow countrymen and while doing so, save a significant portion of your nest egg on your retirement residence in Paradise. It’s now certainly well within your financial reach and as they say, “if you snooze, you lose”; you’ll never find a better time or place to invest those Loonies than now in Mexico!

Written by Jim Scherrer, Info@PVREBA.com

www.pvreba.com

It may not be the most active real estate market right now, but there are developers looking ahead, planning for the future when the market does come back. C&C Capital, a Guadalajara-based real estate development company, has announced two large mega-development projects for 2010, Nahui and Punta Raza, with sales commencing in December and January.

The first is Nahui, a 2,100-acre development situated west of La Cruz de Huanacaxtle, in between Real del Mar/Arena Blanca and the beach of Destiladeras heading west towards Punta de Mita. The property has over 4.5 km of oceanfront and more than 243 meters of elevation change. The highway to Punta Mita, at least the stretch from La Cruz to the hotel Paladium will ultimately be relocated behind this property, freeing up valuable coastal property. The new access point will be on the easterly side of the new development of Alamar in La Cruz.

Phase I of Nahui will include sites for timeshare development called Tau Nahui resort, an anchor hotel, and for a collection of small boutique hotels and residential product options built onto the hillside behind overlooking the bay. Both Tau Nahui and the boutique hotel components will provide an ongoing stream of leads for real estate available on the hillside behind. The idea and hope of the developer is that Nahui will evolve into a west-coast version of Playa del Carmen, (a very successful and popular resort town near Cancun), however with more thoughtful, planned development.

A pedestrian pueblo (the Village) at the property’s western edge facing the beach will provide a publicly accessible retail dining and entertainment center and plaza, and will be the village hub not just for Nahui but for the region.

Phase II, or Club Nahui, will be situated on the eastern most section (next to Arena Blanca/Real del Mar) of Nahui that will include a gated ocean- and golf-oriented property overlooking the Pacific, anchored by a 100-room hotel, planned to be operated by the 6-star Capella Hotels and Resorts company with 120 branded residences. The product will include seaside estates, 3- and 4-bedroom hillside villas, stacked flats with penthouses and custom residential estates, all sharing views to the ocean. 400 to 450 residential units will eventually encompass the complete project.

The hotel and the residential units will be built around a Rees Jones-designed signature golf course, and will have a beach club, tennis center, golf clubhouse, an Auriga spa. The 18-hole golf club and clubhouse will be open to public play with preferential times reserved for residents and guests.

Nahui North is the third phase of the development, positioned above the existing highway and up into the hills behind. The site is being planned for large ranch-sized lots and is envisioned as an eco-community, designed to ensure preservation at this partially segregated corner of Nahui.

The other project of C&C Capital is Punta Raza, and it is situated just south of Guayabitos, about an hour north from Vallarta’s airport. A new four-lane road is scheduled to be bid out in 2010 which would  shorten travel time to and from Puerto Vallarta, but let’s see when that actually takes place. For now though, it isn’t actually that far away.

Punta Raza encompasses 293 hectares with 2.75 kilometers of beach in a single strip and 3.24 kilometers of rocky ocean frontage dotted with pocket beaches and private coves. This really is a spectacular piece of property. I remember flying over it about ten years ago and thinking, it was a developer’s dream with its beachfront, hillsides behind and area large enough for a golf course. The development will feature up to seven luxury hotels, anchored by a 400-room Grand Hyatt Hotel and a 200-room Park Hyatt hotel with 60 Park Hyatt residences. Tau Punta Raza, a timeshare operation, will be the first to open. The site will eventually accommodate up to 1,000 oceanfront and ocean-view single family detached home sites and condominium units, and will feature a private residents-only club. A deep water, 250-slip marina and adjacent village and commercial area is also planned.

Both are very ambitious projects, especially with the market the way it currently is. However, the developer seems to understand this and is launching both projects in phases, all phases to be independent, making build-out much easier. It is understood as well that price points for real estate are going to be very competitive, especially during the early phases of this launch. I think that’s a smart move in this market, you have to do all you can to get people to buy, especially pre-sale!

Had dinner out on the town with a few Realtors a couple of nights ago, some of the top in the industry and who between them have many years selling and developing real estate in the region. Its been a tough year for them all. They have had to make major changes in their operations, scaling back, closing down satellite offices and getting more involved in the day-to-day operations of their businesses. When times were good they could spend more time away from the office, working on pet projects such as developing real estate. But now they are back at the office, keeping a very close eye on the bottom line – its all about cash flow these days.

For some it is rentals that seem to be keeping them going, and for other offices out there. Rentals have been good, at least compared to sales. The upper-end of the market for real estate sales has basically come to a standstill. Luxury properties are just not moving. It seems people are taking a year off, renting a few places to try them out, rather than jumping in and buying something themselves. There are still inquiries, people are interested, they just want to be a little more secure about the state of the US economy before moving forward with something. The active market right now is under $500,000 USD. There is some action above that, but nearly all below $1 million. And for the properties that are selling around $1 million, the eventual sales price was significantly below the asking/listing price.

There is some concern whether there is a “shadow” market, involving people who want to sell but are waiting for the market to get better. The number of listings in the MLS service Multi-List Vallarta has leveled off for the past year, so sales seem to be keeping up with new listed properties. But are there many people out there waiting, and when these properties will come on the market, how will it effect it? There are still a lot of investor-held properties out there; they have to put them on the market sooner or later.

In 2003 the MLS tripled its sales from the year previously. Tripled – in one year. Well sales have now been cut by about 2/3s, so are we getting back to “normal”? Problem is there’s a lot more inventory now than back then. Its not outrageous, and we’re better off than some other markets in Mexico, but its there and its going to take some time to get it back to normal. Fortunately for the health of the market nearly all the properties are held free and clear, as financing is still a small part of the market.

There has been a lot of talk going on with regards to the upcoming vote for the local real estate chapters for how they will be receiving MLS service in the future, and I think the discussion and debate has been a good one for the industry. Its been a little testy and times, and I’m sure it will only continue to be as they get closer to their upcoming meetings where they will be voting on this issue. But the dialogue has been interesting, long overdue and I think at the end of the day, the local real estate industry will be better for it.

As Rahm Emanuel is fond of saying: “Never let a good crisis go to waste!”

I personally have not had so many luncheons and dinners, or received so many emails or phone calls, discussing MLS and AMPI procedures and policies, than over the past few weeks. I wish more of the discussion was taking place here, on this blog, in the way of comments to the posts, but it seems many are more comfortable sending private emails or phoning, rather than discussing the issues openly here.

This dialogue was badly needed. More need to get involved and speak out on how they feel about this and ask questions, questions for both sides of the debate. There is still an incredible amount of misinformation and misunderstanding of how MLS systems work and what would be best for the local industry. The upcoming AMPI meetings that will discuss these issues should prove very lively and interesting!

For Multi-List Vallarta members:

There seems to be a considerable amount of confusion right now over what may be happening regards to MLS service for the Vallarta/Riviera Nayarit region.

Let me be clear that the changes that are taking place will not effect your MLS service. If anything, its going to get better, at least from our side. Our decision to no longer offer MLS service exclusively for the association of AMPI has many aspects to it, but it comes down to that we believe we can offer better service for our clients working one-on-one rather than through the association. AMPI is an integral and important part of the local real estate industry, however, we’d prefer to work on a platform more like we do with our other products, like Vallarta Lifestyles, dealing directly with you rather than through AMPI. The fact that AMPI is actively looking for other options for MLS service only made us think this through more seriously and now rather than later.

This is what you’ll be getting.

With AMPI, if they go with First American’s option, you’ll get a great product for managing your listings. But it is NOT a marketing tool for getting your listings in front of the public. It can only do that, through the interface that each real estate office will be using to show MLS listings on their sites. First American’s system, like many MLS systems in the USA, work behind the scenes, leaving the public contact to be more up to the realtor. They may be considering a public option (but then you get into the difficulty of obtaining good Google positioning and other challenges). Unfortunately that’s a model that is quickly changing these days. Over and over again, through all sorts of industries, the consumer is becoming the one in control. And if you fight it, you get left behind, like newspapers, music producers, and encyclopedia publishers.

Think of Multi-List Vallarta now as a marketing tool. Because of our strong positioning on Google, your listings will show very well on our websites. We will drive traffic to your websites and your email address. You will be able to have your office information listed on the most popular Vallarta real estate websites. You will be able to advertise your listings inside the Vallarta Real Estate Guide. And you’ll be able to receive a print catalog each month, if you like, as well. So we are a MARKETING TOOL to get your listings in front of the public. First American is a system to get your listings in front of other Realtors (we do that too, just not as thorough as they do).

Another important point…

AMPI seems to think that a big advantage is that their system will be connected in with thousands of real estate agents in the USA. There system can certainly do this, but I have serious reservations on how well this would work. How many people go to their Realtor in their hometown to look for real estate in Mexico, or Puerto Vallarta? Perhaps before the Internet existed, when it was hard to get information, but now they can look for real estate in Vallarta just as easily as any Realtor can. People more and more begin their searching back home, in front of their computer. When they get to Vallarta they continue looking through print publications and then through Realtors or developers. But I can’t see anybody asking their Realtor in their hometown (Boise Idaho, let’s say) for information about Puerto Vallarta! That just isn’t going to happen.

I’ve been asked by a couple of Realtors to pass along to them questions that they should be asking about the new Innovia MLS system the local real estate boards are considering. Its not that they are either for or against it, they just don’t know enough about MLS systems, so they asked me. I have reviewed Innovia’s information (as well as for many other 3rd party vendors for MLS systems), so I’m pretty familiar with what it can (and can’t) do. I’ve talked to Realtors in the USA who use it and they like it. But they follow that up with, you have to really know it, and use it, to get the most out of it.

Let me say once again that it really is an impressive system. It offers a lot of options and flexibility for managing your properties and clients. I keep coming back to the word “overkill”, but that’s subjective. Perhaps Realtors really will put all the options to good use. Or, if you only use a few options but the price is really good (less or equal to the current MLV), then that would seem to be fine. But if I was being asked about this system and what my questions were, these would be them:

1. What’s this going to cost?

I’ve heard that FA will not be charging anything. I’ve also heard that it would be the same cost as what MLV currently is. If its the latter, then where’s the money for AMPI in this, and how do we pay for the office and employees?

2. When I use the maps system that FA uses (Microsoft), La Cruz and Fluvial do not show. No streets. Can this be updated and when?

Would bird’s eye view be available in this region? When I checked out the Microsoft maps, the aerial images were old. Tres Mares was not built yet. Only one tower at Peninsula. So how many other developments that were built during the past couple of years, don’t show up? And why can’t you zoom in more, like with Google maps, and what are the images not as clear? Are they only going to update the images every couple of years?

3. The CMA. This seems to be a primary benefit/advantage that people talk about with Innovia. And it is nice. But what is going to change that people are going to start reporting sales? What good is the CMA if there are no solds in the system?

AMPI and the office of MLV have tried for years to get people to report their sales. MLV calls each month about this. But rather than getting better it seems to be getting worse. Some offices have taken the position this is not their information to divulge, its the sellers. And if that seller for some reason doesn’t want it disclosed, but the office discloses it anyways, could they be liable? Why has one of the top offices in town decided not to post their sales? What do they know, or do they think could be the downside to listing sales? We all know that there are still people that register a lower value than that of the actual sales price. I’m sure those people don’t want the sales price disclosed. And now with the current IRS position that all foreign trusts have to be filed with them, how would this effect this? I would love to see this information available so we could generate better reports and have a better idea of what’s going on in our marketplace, but under the current system, I don’t see how that can happen. And as one Realtor put it GIGO (Garbage In, Garbage Out). If its not being entered, no matter how wonderful the CMA module is, it won’t work right. Great CMAs would be wonderful, statistics would be wonderful, but this system is not going to change they way people think about reporting sales. Unless I’m really missing something.

4. Public Side of MLS – will we have this, and when?

This for Realtors to ask: Multi-List Vallarta promotes all of our listings at www.mlsvallarta.com. It has some of the best ranking with Google, as does www.vallartarealestateguide.com and www.virtualvallarta.com. If these sites no longer are featuring the MLS, how will people find my listings? If the ratings in Google for a my office aren’t that good, how will my listings be found? Only on my competitor’s sites (who have good positioning but only show THEIR contact information)? Perhaps AMPI is planning on having their own website to put the MLS, but how long is it going to take them to get good ranking? This is a very competitive business, there are 70 real estate offices and 100 developments that all want to show up for “Vallarta real estate”. But #1 right now is www.mlsvallarta.com. So how will my listings be found online? This is really important if I want to compete/survive with the big offices.

5. What’s the rush? Is the best system that approached us really the best one?

There are about 25 3rd party vendors offering MLS systems. First American provides is one of the largest, but it is the largest for medium-to-large MLS boards (that’s right from their website). They work well with 3,000 to 10,000 Realtors – we have just over 200. What is the top system for small boards? Systems Engineering; they have about half the market. Why aren’t we talking to them? IF FA’s system is so good, why did Los Cabos decide to go with FlexMLS?

6. Money (again)

Its really important to ask about what this is going to cost. Is FA really willing to do this now and for years, for nothing? Currently MLV charges $50 per member. With 70 members that’s $3,500 USD per month. Yes, some pay $100, but that’s to receive services such as listings in a MLV catalog, classifieds in the Real Estate Guide and office directory listings on our websites – things FA won’t offer so you can’t include this in what this can bring in. Will they do it for $3,500 USD a month? Wasn’t there supposed to be something there for AMPI as well? And what about the cost of now having an office, employees, equipment, tech people, utilities, etc. Has AMPI done a detailed study on what the actual incomes and expenses could/would be? If so, why not share it with us?

7. Multi-List Vallarta was operated by non-competitors for agents. Who will control the new MLS?

Got to ask this. For 20 years Flo and I have operated the MLS and we have not sold real estate while doing so – we were not your competition. There was no reason for us to use the information in some way to personally benefit ourselves. But now the control will be with whoever are president of the boards. People who are your competitors. I’m sure they will be honest and fair. But just saying: that was never the case, or had to be brought up, with Multi-List Vallarta.

In summary, FA has a great system. Plenty of bells and whistles. But has AMPI done their homework properly here? Can they supply a budget of what this would cost/earn? And is it smart to take the first system that comes their way?

I’d like to share some of the information I have gathered over the past few months while trying to come to some understanding of what MLS service might look like in five years time. Here’s some of the trends I see happening.

Using 3rd Party Vendors for MLS Service

Today, 73% of MLS service for real estate boards is provided by 3rd party vendors (like First American or Multi-List Vallarta). Only 5% actually still own their own systems, and this number is dropping. Its expensive to own your own database system, better to have someone else do it and pay for the upgrades.

The “Good Enough” Revolution

There is a strong trend these days called “Good Enough”. Don’t make it complicated, just make it do the job. What consumers want from a product is fundamentally changing, they now favor flexibility over high fidelity, convenience over features, quick and dirty over slow and polished. Having it here and now is more important than having it perfect.  A great example is the new “Flip” digital video recorder that many real estate offices are now using. You don’t need an instruction manual to use it its so simple. And its killing the more sophisticated video cameras vendors. 20% of the effort, features, or investment often delivers 80% of the value to consumers. You can drastically simplify a product or service in order to make it more accessible and still keep 80% of what users want – making it “Good Enough”. Take a look at MLS systems and take this into consideration – what delivers 80% for 20% of the effort? This is what Craig Newmark, of Craig’s List had to say about this: “Most people’s needs are simple, all you have to do to serve them well is build a minimal infrastructure allowing them to get together and work things out for themselves. Any additional features are almost certainly superfluous and could even be damaging”. Well, you can’t get more simple (or successful!) than Craig’s List!

The Internet is radically transforming businesses – is real estate next?

There was a time that record producers controlled music, especially when it was only available on vinyl. Then came cassettes, which allowed people to copy it, and they lost a little more control. Then came digital formats and Napster and iTunes – then the record producers lost complete control. Consumers now control the distribution of music. They do the same with books through Amazon, with classified listings with Craig’s List, and information on Wikipedia. What about the real estate industry? It is being seriously challenged by services such as Zillow, Redfin and Google. The consumer are the winners in this new world model, especially with the introduction of social networks such as Twitter and Facebook. Is real estate next to undergo a revolution? It already is.

How sophisticated of a system do we really need for MLS service?

Here’s some interesting numbers from Multi-List Vallarta: •30% of the offices have 5 or less listings •60% have 10 or less listings •75% have 20 or less listings •95% have 50 or less listings. Can a legitimate, sophisticated system be built upon this? First American’s system, as it says on their website, is built for medium to large systems. Like 10,000 users. MLV has 200 users. Is this the best system for AMPI’s MLS? The most popular American MLS 3rd party system is offered by Systems Engineering, which has 50% of the market share for small MLS systems in the United States.

Advent of Consumer MLS Systems

This is where MLS systems are going. As former NAR president Billy Chee said back in 2002, “The consumer is the lion coming over the hill.” If the consumer wants the information and Realtors aren’t delivering it, they will find a way, or someone will find a way, to deliver it. And that’s what Zillow and Google are doing, creating open systems that involves involvement of everyone, including FSBOs. Our system, (Multi-List Vallarta) is still a “closed” system in that we don’t allow FSBOs and only offices that have complied with the requirements of AMPI. There are some open systems out there available for the consumers in Vallarta, but they are weak, don’t work well and don’t have sufficient content. But its coming, its just a matter of time.

If AMPI decides to establish their own MLS system (and from the feedback we’ve been getting, that seems to be the direction they are going in), it is going to take some time to get it up and running properly. So you’ll want to continue with our service at least until it working and they’ve worked the bugs out of the system. But you’ll also want to continue with our service to ensure that your listing information is found on Google Searches.

Right now, if people search for “vallarta real estate”, or “vallarta MLS” or many, many other key search words or phrases, out websites come out in top position. That means if people use our MLS search available on these sites, your listing information with YOUR contact information, is there. Even if you company website with your listings and MLV Interface comes way down in Google searches, you know that at least your information will appear on www.mlsvallarta.com.

If you look at which other websites come up during these searches, you’ll see that they are either you (if you are one of the lucky one’s!) or your competition. Your listings appear on your competitive sites with the MLV interface, but your contact information is NOT included. However, as long as you have your listings with Multi-List Vallarta, your listings will be in good positions with Google.

So now what about is AMPI goes with First American?

Well, they certainly will not be in the top positions with Google. This takes time, money and a lot of work. They are competing not just against our sites, but 70 other real estate offices and as many real estate developments, who are spending the time, money and doing the work to ensure they show up well. Its going to take time, if they decide to go with a public AMPI search website, to get good positioning.

So you are going to want to continue being a part of Multi-List Vallarta, even after AMPI’s system is up and running, to ensure your listings have the best exposure possible. Even the offices that do have good positioning should do so, as they don’t show up for all key words or phrases. Nobody completely dominates this, but we do come out very well, and we are the only public option available – you can’t advertise on your competitor’s website!