There are people who attempt to buy an apartment on their own without the assistance of a professional real estate agent. Once the search begins and different options are presented, most clients looking on their own become overwhelmed – especially if we’re talking about buying a property abroad.
Hiring a licensed real estate broker allows you to make an informed decision using their experience in the local market when buying an apartment. The brokers knowledge of the real estate laws, market prices, and local negotiation culture allows the buyer to get the best price possible while ensuring your investment is purchased in a legal and safe manner.
Easier, Cheaper, and Safer?
Even though real estate agents in Panama earn between 3.5% – 5% of the selling price (see “Transaction costs when buying real estate in Panama” here), hiring a broker could end up costing you less than trying to buy a unit on your own.
Your real estate agent will act as an advisor and financial consultant by:
- Showing you different property based on the specifications you provided the broker. Once a property you are interested in is pinpointed, the broker will advise you to the market price of the unit and what they think you could negotiate the price to.
- Giving you information about the neighborhoods matching your lifestyle and expectations.
- Having a real estate lawyer draft and review all purchase and property transfer documents.
- Connecting you with local contacts for property management services, legal advice, insurance, and furnishing options.
Keep in mind that even if you speak Spanish and had bought a property before in your home country, the Panamanian laws and purchase proceedings will be different from where you are originally from.
For more information on why property management is Panama is a necessity, not just a service, we recommend you read this article.
Things good real estate agents help you with:
- Updated listings.
Brokers actively involved in the local real estate market will have an up to date inventory of available listings in the neighborhoods you are interested in.
- Detailed questions.
A knowledgeable broker should be able to answer your questions on the local real estate market, laws, services associated with real estate, the rental market, and the purchase process from A-Z.
- Tackling the paper work.
They take care of due diligence on the title, ownership certificate, and any purchase agreements up to the final contract.
- Financing requirements for expats.
Panamanian banks offer foreign applicants 70% loan to value with interest rates from 6%-8% depending on the type of property. Your licensed broker should be able to connect you with the right mortgage broker or bank to assist you with your financing needs.
- Repair requests.
Real estate brokers know what to look for when inspecting a property you would like to purchase. With Panama’s climate, there are issues that must be addressed that may not apply to properties in your home country. Panama can be humid for part of the year so mold is an important factor to look out for when choosing a property, especially a home where no on is currently living. Be sure to have someone inspect the property for moisture or mold when purchasing a property.To know about the Best Plants to Reduce Humidity in your Apartment go here.
Overall, hiring a licensed real estate agent will save you time, money, headaches, and legal issues when purchasing a home both in your home country and abroad.
If you are considering investing in real estate abroad, you must read our free guide with the 5 top reasons for doing so in Panama. Click below for a free download: