On this episode of the Real Estate Fight Club Podcast, Jenn and Monica are going to duke out over whether or not verbal offers should count. Today's tiebreaker, Anna Maria, will contribute to the question. Jenn and Anna will be talking about the system they have in Panama and how deals are made there as well. Tune in now.
Episode Highlights:
- According to Jenn, not considering verbal offers makes sense because people will say a lot of different things; However, there have been instances where the buyer and seller agree, write it up and then in writing it changes.
- When working with a large investor, it is often necessary to communicate vocally or by text first. According to Jenn, it is done a lot vocally in other nations.
- Monica believes it should not be counted and it would be a huge mistake. If the selling agent has bidders and they offer you $500,000 cash with no inspections, it's not the same by the time she gets to the paper.
- The phrase that comes into play in the verbal discussions is honor your word. We all know because we have been in the business long enough unfortunately that just doesn't work the way you think it should.
- If you are the buyer's agent and it's something that the seller said they are going to get fixed, it's your responsibility to get that in writing. Jenn adds that it is not the listing agent's responsibility.
- There is a reason we have a hard line, says Monica, and that is why we all use accepted contracts. It's because you have to draw a line in the sand somewhere that we all can agree on. It is a little bit more concrete than a verbal discussion, but it still falls short of all of the rest of the legal contract.
- If you have got the verbal agreement and you are just buttoning the thing up but there was one change that needed to be made, that leaves the contract open.
- Overstepping bounds as an agent runs rampant in our industry, says Jenn. Where they just understood the conversation in some way and it wasn't accurate. People also change their minds all the time.
- In Panama, while there is a push for people to be licensed real estate agents, many people are still not licensed. There could be multiple people representing the property and the property could be advertised at different prices.
- The tiebreaker for this episode, Anna says, “Here is no contract or anything. It is insane here in Panama. They are trying to standardize everything and try to emulate the states to have a little more accountability.”
- In Panama, last year, October 2021, they just changed some laws that are very beneficial for people worldwide to come to live there. They depend on foreign direct investment, so the country is trying to push visas for people to come here.
- In the US specifically, there are different countries with different sets of requirements. You can invest in Panama for $200,000. You have to invest in cash, not in a mortgaged property.
- They are very good investments in Panama. You can buy on the beach, you can buy in the mountains, you can buy in the city. There are plenty of options here in Panama, and you can get your visa. We have tax friendly policies, says Anna.
3 Key Points:
- Monica talks about the things that happen when sometimes by accident your clients get to interact with the sellers for someone.
- Tiebreaker Anna says that in Panama, they don't accept verbal offers. They send a form. A company has their own form; It is a private organization and they have specific forms that you can use.
- Anna shares some good tips for people who want to buy an investment property outside of the United States in Panama.
Tweetable Quotes:
- "While we agree, until it's fully signed, there is actually no agreement. But you could do all this stuff ahead of time." – Jenn
- "You have to be careful of saying any guarantee because you cannot guarantee it." – Jenn
- "We are trying to push the system the same as the US has. To give one property to one realtor, I think their possibilities would be better off in different baskets." - Anna
- "We can have $100,000 in the stock market, or you can buy a property which is the smartest thing to do. Since you buy the property, you can use it as an investment." – Anna
- "A lot of people are moving out of the United States. They are moving to Puerto Rico for the tax, which is considered as a territory, but then a lot of people are looking at Panama too as a tax shelter." - Jenn
Resources Mentioned:
- What's App # - 507-66-17-3034
- avillanueva@padecorealty.com
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