gsinker
New Member
I wanted to let potential buyers in Panama aware of attractive deals that can be had in Panama and to understand how they come about.
I am sure the whole world has now heard of the term "Distressed Sale". Well the term is also being used in Panama but when you look at what is actually being offered the term Distressed is only applicable to the seller and nothing else.
Every few months a new building gets near to its final completion and the CO is ready to be issued by the local government. It is at this time that the developer sends out those nice letter to all the buyers explaining that it is time to make the final arrangements with there banks in preparation for closing.
The vast majority of buyers are OK with this news and are happy to start the closing process however there will be some that are not.
Due to situation outside of there control they are unable to get finance of bring the final money to the closing table. It could be a investor that over speculated or the person who now needs extra funding back home because of job loss, etc.
We are not in a situation her in Panama where the property is not worth the original sales price or that the demand for the property is down quite the opposite. So the buyer has a situation where he either defaults and the developer takes the property and there deposit or the try and sell the unit prior to closing at a discounted price.
This is where the bargain comes in for the new prospective buyer. A buyer can snap up a property for a price reflective of the date when the owner purchased the unit some 18 months before. All they have to do it pay to the seller the money that the buyer has paid into the deposit to the developer and whatever is added to the price as a slight profit to the seller.
There will normally be commission to be added and any legal work that was done. There is no point making offers below the price of the unit as the seller might as well default and right of the deposit on there taxes as a loss. The new owner must complete on the sales in the same process that the previous buyer would have.
The new owner has a property that is still worth today's prices as they have not dropped but the have purchased a large amount of equity.
As I am sure you can see this is not the same as the distressed sales in other countries brought about by a drop in property values or lack of funding or currency changes.
I am sure the whole world has now heard of the term "Distressed Sale". Well the term is also being used in Panama but when you look at what is actually being offered the term Distressed is only applicable to the seller and nothing else.
Every few months a new building gets near to its final completion and the CO is ready to be issued by the local government. It is at this time that the developer sends out those nice letter to all the buyers explaining that it is time to make the final arrangements with there banks in preparation for closing.
The vast majority of buyers are OK with this news and are happy to start the closing process however there will be some that are not.
Due to situation outside of there control they are unable to get finance of bring the final money to the closing table. It could be a investor that over speculated or the person who now needs extra funding back home because of job loss, etc.
We are not in a situation her in Panama where the property is not worth the original sales price or that the demand for the property is down quite the opposite. So the buyer has a situation where he either defaults and the developer takes the property and there deposit or the try and sell the unit prior to closing at a discounted price.
This is where the bargain comes in for the new prospective buyer. A buyer can snap up a property for a price reflective of the date when the owner purchased the unit some 18 months before. All they have to do it pay to the seller the money that the buyer has paid into the deposit to the developer and whatever is added to the price as a slight profit to the seller.
There will normally be commission to be added and any legal work that was done. There is no point making offers below the price of the unit as the seller might as well default and right of the deposit on there taxes as a loss. The new owner must complete on the sales in the same process that the previous buyer would have.
The new owner has a property that is still worth today's prices as they have not dropped but the have purchased a large amount of equity.
As I am sure you can see this is not the same as the distressed sales in other countries brought about by a drop in property values or lack of funding or currency changes.
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