Follow on Google News News By Tag Industry News Country(s) Industry News
Follow on Google News | Buyer Beware; Panama Real Estate Information At A PremiumIt's no secret that the game of real estate is often one that revolves around the control of information, and in Panama due to a number of factors at play, the disadvantages that result from a restricted flow are significantly amplified.
By: Matt Landau The dissemination of information dilutes power...information is a beacon, a cudgel, an olive branch, a deterrent, depending on who wields it and how. - Steven D. Levitt and Stephen J. Dubner, Freakonomics Freakonomics talks about this phenomenon and the rise of the internet as a way of giving regular Joe-Shmo the opportunity to the ability to examine real estate in depth, thus shifting information to the hands of people who have it, into the hands of those who don't. In Panama though, there are few, if any internet resources that collect or divulge this kind of information: Outside of website owners and real estate agents, even so-called experts depend on the fact that you don't have the information that they do. Luckily, in these cases, oftentimes the information has a price tag that you can pay for to acquire like my $99 eBook, The Panama Real Estate Report (http://www.thepanamareport.com/ In Panama, the real estate agent is king. They are not only the possessors and the hoarders of valuable information such as market prices, trends, and buying power: they are also oftentimes so busy with an excess of potential buyers chomping at the bit, that they can quite easily afford to kick you (the persistent and inquisitive one) to the curb, simply because you take more time and energy to attend to. They are the almighty beholders of information (albeit information they've acquired through experience) and they'll be very selective in how they relinquish that stronghold to little old you. Matt Landau of The Panama Report (http://www.thepanamareport.com/ Because Panama has nothing close to a Multiple Listing Service (MLS), information is rarely shared about properties between developers, agents and buyers. Against what anyone will tell you, there is no efficient distribution of information in Panama and it's very difficult to gather comparison data unless you're doing all the gathering yourself (which will take a lot of time, money, and misery). This is all reinforced by a poor overall real estate infrastructure (trivial legal repercussions, unorganized public records, incompetent public officials). What do real estate agents, the beholder of the gold, want to sell you in Panama? In order to synthesize the information you receive from your real estate agent, it can be useful to take into account where they make the biggest (and immediate) paycheck. Real estate agents in Panama collect commissions percentages just like agents elsewhere, but it is the time table by which they receive their commissions that's worth noting. Pre-Construction: Raw Land and Re-sales: Land, existing condos, homes, or commercial property are preferable to agents because they get paid right away (as opposed to waiting for a developer to finish a unit). It would be advantageous therefore, for the agent to push these sorts of transactions and accordingly get paid quicker. I don't know about you, but if I was an agent, I would much prefer to be paid all at once, and thus portray the more favorable investment as superior. Understanding this is half the battle. Inquire about how your agencies commissions are setup to know how to interpret the agent's advice. "Sunlight is said to be the best of disinfectants." Before you make your investment, try to shed as much sunlight as you can. Meet as many people and read as much information as humanly possible. Become a consumer of everything related to your real estate area of interest. Panama real estate is not like the industry you're used to at home. You'll rarely find agencies sharing property listings, you'll often see developers changing their minds mid-project, and comparing different investments can be an act akin to crocheting a sweater for a mosquito. As the Panama real estate market grows, the line between the experts and the buyers will begin to blur. Information will slowly but surely seep into the hands of the public, but until it does, and until this serious information asymmetry dissolves, buyers should certainly beware. Website: thepanamareport.com/ End
Account Email Address Disclaimer Report Abuse
|
|