Foreclosure Properties in Panama: 3 Points to Keep in Mind

Finding a repossessed property can be of great economic benefit either when buying to live in or for investment. If the searching and follow up job is done effectively, it will allow you to get a foreclosure property with significant discount.

It sounds good, but is not always easy, in the case of foreclosures, what you initially see is not always what you will get, a lots of these homes most of the time are not well taken care of, and the purchasing and financing process is not always very transparent, it is recommendable to be well informed and understand well the pros and cons of these types of real estate assets.

For sure in 2020, the actual situation of COVID and the economic impact in the real estate sector can create an environment of increasing the inventory of foreclosure properties in Panama.

For those who are looking to buy or invest during this period, this environment could be of benefit, but to avoid bad experiences and to prepare expectations, we present below 3 points that you have to consider about these types of goods:

Clarity in the budget

During the search process of repossessed properties, the first expectation that people have is to find homes with substantial price discounts. It is not always like that, and it is important to compare and research the prices of similar properties in the same area to understand in-depth if there is a benefit in terms of the market. If you find a price that it is not that far low compared to similar homes, you should consider observing other opportunities of appreciation that can be in the near future according to its location and nearby developments.

If indeed you can find a property with a very low price, it is necessary to see the place itself, before considering is a good investment. If the listed price is way low there must be a reason, you should research what kinds of improvements will be needed for the property, in order to have a more realistic budget.

Observe property quality and environment

While seeing the property, details such as door conditions, windows, bathroom, kitchen, appliances and furniture (if any), are signals of how long the property was vacant or without anyone residing in it, and it can also give you an idea of how deteriorated could be.

Also, it is recommendable to verify that the location of the property is convenient, not only for safety and closeness reasons, but also its way of access and the conditions of the roads, in some cases, these small details are a definite factor affecting the price listed.

A real estate agent can be of great support

During the search of foreclosure properties, an experienced real estate agent can be of great help, not only to find different options of foreclosures, but also to provide support during the whole buying process.

Besides, you will not always find in listings everything that there is in the market, a real estate agent sometimes could have exclusive information from the banks and financial entities of other foreclosures that can be entering soon into the market.

Are you looking for foreclosure properties in Panama?

If you are searching for foreclosures and other real estate properties with special discounts, contact us, we have a wide experience in this type of properties and in the real estate sector overall in Panama.
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