The real estate market in Panama has great advantages for those who see the country as a place to invest or start a new adventure. The strong economy and reasonable property prices attract large numbers of tourists and expatriates.
The tips below are essential to enter the real estate sector in Panama and cover topics that are vital for the investment you wish to make that will exceed all expectations.
Working with the Right Real Estate Agent
It is important to work with an experienced real estate company. Every reputable and credible broker knows the pulse of the local market to guide you in finding the perfect property. However, helping to find the future home or property is one part, the company will also be the guide throughout the sales process until the new owner has the keys in his or her hand.
If You Require Financing, Secure a Pre-Approval from a Local Bank First
It is not always possible to buy a property directly without the help of financing, as a mortgage or loan. Fortunately, financing is available in Panama for both locals and expats, but it is not without complications. It can be a very long process and requires local guidance. If financing is needed to make a purchase in Panama, it is important to speak with a local bank before beginning the property search to see if you qualify for a loan and for how much. With pre-approval in hand, you have a better understanding of the type of property you should look for and the potential return on investment you should expect.
Buying Without Financing Has Advantages
One of the best ways to convince a property seller is to buy it without financing. This is because by using the leverage of a quick closing, your real estate agent can negotiate a more attractive purchase price with the seller. At the same time, you avoid all the additional costs associated with obtaining financing, including bank closing costs and the insurance necessary to obtain the loan.
Make sure the Real Estate Agent is Licensed
Buying real estate without an agent can lead to property problems in any country, and Panama is no exception. All real estate companies in Panama must be licensed, a licensed broker will understand the ins and outs of the local market as well as exactly how the sales process should be done and who is responsible for what.
In addition to having a license, verify that the broker is part of local real estate associations such as ACOBIR. Generally, these brokers have the knowledge and experience to represent the client well throughout the transaction.
