Why do properties in North America sell in a matter of months and in Panama in a matter of years?

By
July 08, 2020

Why Panama?

Depending on where you are in North America and the type of property, how fast a property will sell can vary.  In certain markets it can sell in a matter of days.  In other markets it may take a couple of months.  High end properties may take longer.  But overall, the average time a house is on the market in the US is 65 days.  In Canada, in Windsor, it typically takes about 12 days to sell a property.  Compare it to Saguenay in Quebec, where it takes about 134 days and that is the longest period reported in all of Canada.

The big difference between North America and Panama is that in North America they have been keeping accurate data on prices of homes sold in every corner of the country.  When you sell in Canada or the US, you can easily ascertain what price per m2 has sold in that area in the past 30 days, 90 days, 180 days, etc.  Years of information exists and the price for a property to sell is set based on this information.   The realtor in Canada, for instance, knows exactly how long it will take to sell a home based on the average number of days that a home in that area stays in the market.  He knows how many homes are for sale in that neighborhood, in that street.  He knows exactly the prices of each of the homes sold nearby in the past. 

This information is not available in Panama.  Any of it.  We don’t even have addresses to look up a property.  

A realtor in North America can invest in marketing for the property because he is assured a return.  He is assured, by the information available, that he will sell within X amount of days.  Not in Panama.  Without knowing a realistic price, it could be years.  

What is selling at this moment, are properties that are 10 to 30% below appraised value.  So, by getting the appraisal, we get closer to obtaining a price that is realistic.   It must be from a well respected appraisal company like Zubieta y Zubieta, AVINCO, or Panamericana de Avaluos.

This is why we strongly suggest to get an appraisal because it is the closest thing to obtain up to date, relevant information and it is the best way to set a price that will actually get your property sold in months versus years.