Panama Real Estate – Buying or Renting
If you are thinking about buying or renting a property in Panama, you may need to consider some important factors to make sure you will make a good investment. Finding the right property for either purchase or rental is a process that can become stressful and difficult especially in a place like Panama where choices abound and the property market is growing every day. For you to achieve this objective you need to have a clear idea of what you want and keep in mind some key factors to successfully reach your end goal: your own Panama Real Estate
Have a clear idea of the type of property you are looking for
The most important factor to consider when you are looking for a property is to have a clear and accurate picture of the type of property you are looking for and in what area you want it to be. Another aspect to consider is your budget since depending on it you will have access to different areas. A good idea is to check popular sites about Panama Real Estate to have a general idea of how are the prices in the current market. Usually if you are looking for an affordable condo, areas to consider are El Cangrejo, San Francisco, El Carmen, Via Porras, Transistmica, Tumba Muerto and Edison Plaza. Generally these areas are in the center and slightly away from the sea and that’s why prices are cheaper; however they are close to supermarkets, banks, shopping centers etc. If instead you are looking for something with ocean view, areas to consider are Avenida Balboa, Marbella, Paitilla, Punta Pacifica, and Costa del Este. Also if what you want is to be more in touch with nature, the best option is reverted areas like Clayton and Albrook since other areas are more residential and do not have tower buildings. If what you are looking for is a house, there are very few options in downtown Panama City (unless you want to rent) because buying a house in these areas has a very high cost. Areas recommended for purchasing homes are El Dorado, Dos Mares, Villa de las Fuentes, Altos de Panama, including King County. Other more expensive options are available in areas such as Clayton, Albrook and other reverted areas, and also in Costa del Este. For you who want to be further away from the bustle and traffic of the city, options in suburban areas such as Las Cumbres, Don Bosco, San Antonio Tocumen, Arraijan, Chorrera etc. are also available and of course the have a much lower cost due to its distance from the city center.
Choosing a good professional for
The second most important factor to think of is to what professional Panama Real Estate agent or company you will go to for assistance. No doubt there are many agents and real estate companies in Panama but not all of them are serious professionals. It is often advisable to choose an agent or company that has been referred by acquaintances, relatives or friends, because at least we have some assurance that the agent is backed up by his results and has some reputation. But what aspects to consider in case you do not have any referred agent? In that case only observation may give us a clue about whether we are going in the right direction while choosing our real estate advisor. First impressions count a lot as we are looking for an agent or company that offers good customer service and can be a good listener to our concerns, desires and needs while answering our questions about the process. Similarly, the advisor should be able to provide us a clear picture about the options in the market, and other aspects of the transaction. In general it is better to go with an established company than working with an independent agent (unless it is an independent agent we have been highly recommended) because in case you encounter problems with this agent for some reason, you’ll have the assurance that the company will respond or be responsible for the actions of this agent. Independent agents usually do not have an office or a reliable way to be contacted so if for any reason they decide to vanish, you’ll simply not have anyone to turn to. It is advisable to avoid agents that from the outset have difficulty to be consistent with their words and promises, those who try to manipulate the situation to push you in the direction of a specific property, and of course those who fail to keep us informed about what is happening during the process.
Review the status and condition of the properties
Very often new buyers and tenants fail to see the flaws of the property they are about to purchase or rent. In the case of rentals, usually property owners are contractually obligated to repair any damage during the time tenants live in their properties, but in the case of buying the 
story is somewhat different. If you buy a new home developers are required to deliver the house to your satisfaction after having been inspected by you as many times as necessary. It is at this stage that you have all the power to ask them to repair or correct any fault you find in the property, as after delivery, although the Panama Real Estate developers are obliged to give warranty for every part of the house for some time, it is much more difficult to get developers to fulfill their responsibility to repair or fix the damage on time and according to the terms agreed. Remember you sign a document at the time of delivery stating that the house was being received by you to your entire satisfaction.
This point becomes much more critical if the home is not new but a resale, in which case buyers should check out the property thoroughly to identify and anticipate any damage the property may have because once the purchase process is ended there is no way back and an overlooked damage will represent a double investment. If you feel you are not qualified to inspect the property properly, then the best recommendation is that you hire a property inspector.
Have a Panama Real Estate lawyer to advise you about the legal issues
In some cases this is not extremely necessary, for instance, the real estate agent or advisor might be familiar with the paperwork and you trust him, in fact there are some real estate companies that provide legal services and also any licensed real estate broker has the power to correct and draft simple contracts such as the rental contract and promise to purchase agreement. Either way if you have a friend or acquaintance that is a lawyer or knows about laws this would represent an advantage for you. The lawyer may advise and review all documentation to ensure that your interests are properly represented and covered and that you are not in danger of agreeing to things that do not apply or give away your rights in any way.
Get Your Finances In Order First
You need to be able to prove to a seller that you can get a mortgage in Panamá. What will happen if you make an offer on a home without proof of funding? You’re much more likely to get passed over for the next buyer.
Make sure you can get pre-approved for a mortgage loan before you submit an offer letter. A pre-approval letter is a letter from a mortgage lender that confirms the mortgage amount you qualify for and lets sellers know that you’ll be approved for the home.
Keep in mind that a pre-approval and pre-qualification letter aren’t the same thing. Your lender takes a look at your income, assets and credit before they issue your letter. This allows your lender to give you the most accurate estimate possible. When you’re pre qualified, the lender usually doesn’t verify the information you provide. This means that your pre-qualification number holds less weight than your approval. Remember to always include a pre-approval to submit the strongest offer possible.
Negotiate your price and agree deal
The amount of room you have to negotiate is inversely proportional to the amount of interest in the home. If many buyers have expressed interest in the home and there are more offers, you’ll have less room to negotiate. If your local real estate market is cold, you have more room to ask for concessions, a lower price and repairs.
You might be able to get a bargain if the home has been on the market for a long time and the seller wants out. However, if the seller has had multiple offers on the home, you’ll need to submit a higher offer right off the bat.
Have you been shopping for a home for a long time? If so, you know that finding the perfect property can be emotionally draining. What you might not have considered is that selling your home is also an emotion-driven process. Every seller has memories of their home and they want to see their home go to people who will take good care of it.
Your down payment isn’t the only thing you need to pay at closing. You must also cover closing costs. Closing costs are expenses that go to your lender in exchange for servicing your loan. Some of the most common closing costs include appraisal fees, inspection costs and credit check fees. Closing costs on a home purchase are usually between 3% – 6% of your total loan value. For example, closing on a $150,000 loan means you can expect to pay between $4,500 – $9,000 in closing costs. This means that these fees can potentially present a significant barrier between you and your home purchase.
You may not realize that you can ask for seller concessions beyond the price of the home. For example, you can ask the seller to chip in if you want to buy a home but you’re having trouble covering closing costs. The seller may agree in order to close the sale faster. However, if there’s a lot of competition for your home, you may want to hold off on asking for closing costs. Ask your lender if you have the option to roll your closing costs into your loan.
The more you know about a seller, the more effectively you can negotiate. For example, if your seller is moving because they’ve bought a new home, you might be able to get a better offer by asking for a discount. You probably won’t be able to get repairs or renovations before closing, as the seller likely wants to get out of the home as soon as possible.
Ask your Panama real estate agent to do a little digging on your seller. Find out if the seller prefers a shorter or longer closing process. If your seller is getting a divorce or wants to move to an area with a better school district, they’ll probably be more eager to sell. This gives you more room to negotiate, especially if the property has been on the market for a while.
In some situations, you’ll encounter a seller who doesn’t want to budge on the home’s price. They may have a number of offers or be very attached to the home. In these circumstances, it can be tempting to throw your budget to the wind and offer more than you can afford to “win” the home. This will force you to take on a higher loan, and you may even need to buy private mortgage insurance before you close if your down payment is too low.
Go into the home buying process assuming that you’ll need to walk away from every home you see. Attend multiple showings, ask your real estate agent to set up a variety of viewings for you and try not to get too attached to a particular home. This can help you negotiate more effectively and stay within your budget.
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