Thread: Confessions from a Real Estate Agent in Panama: The Commission Stack.

Real estate companies are commonly stacking commission in Panama. It is a bastardly practice that costs both motivated sellers and buyers too much. Here’s how the scam works.

Confessions from a Real Estate Agent in Panama: The Commission Stack. | Eye On Panama

Thanks forbes, I'll be in Panama this fall an be looking you up .Anything in Playa Blanca ?

Me too Forbes ,I'll be there in a few months looking for you.

very interesting article on this in the panama-guide .com website

Another example of scams...

My friends in the real estate business entertain me with crazy stories that happen. Basically, there's dozens of real estate companies that are committing serious fraud, false advertising and worst.

This article doesn't even reveal the tip of the tip of the iceberg.

Here's one example that blew my mind...

A "Jenius" (note the capital "J") who was the marketing manager for one of the biggest real estate companies in Panama wanted to attract new business -- and here was his master plan:

They advertised a beach front condo for $96,000. There was one small catch: THE CONDO DIDN'T EVEN EXIST!

This "Jenius" taught they could "steer the leads" into a new direction after they called and sell them something else.

It's the classic technique where you would read an ad that said:

SEX...

Cement for sale at $7 a bag.

What the fawk?

Basically, they were committing fraud and false advertising.

Not surprisingly these guys are crashing and burning and the owner "fled" out of town at night back to the US.

I've got dozens of crazy stories like this. Maybe I'll share more later.

It's the wild west in Panama.

Matt

Originally Posted by No-Non-Sense-Matt

Another example of scams...
My friends in the real estate business entertain me with crazy stories that happen. Basically, there's dozens of real estate companies that are committing serious fraud, false advertising and worst.
Matt

A spin-off of this is of course that buyers get very wary and reluctant to invest fearing that the development they are interested in is one of the scams. Which makes it harder to sell genuine property. Which penalizes the genuine realtors............

This is another reason why Exclusive listing should be encouraged in Panama. There would be more control on pricing and advertsing as the agent would have to sell at the agents listed price as agreed by the seller and the listed agent. The contract would clearly state the commission to be earned by the agent.

The rogue agent would soon bee found out and they would get bored and move on to a new way of making a quick buck.


I am confused in the article with a reference to "Short Sales".

Surely a short sale is agreed through the lender who has a mortgage on the property, when a unit has not closed how can this be a "Short Sale"?

Plus when a short sale is conducted there is an appraiser called in by the bank to access the current price of the home so a suitable number can be obtained for the short sale.

These deals being offered prior to the unit closing have nothing in commom with a Short Sale other than the fact money is exchanged and so is a property.

If the developers hadnt marked there prices so high to start with, we might not have this need for selling like this.

I feel that this practice is a great way of allowing people to sell properties without losing there original deposits.

Its not Short Selling, its just a correction in the market place on Real Estate prices.

Lets face it if this method of selling was not available no one would be buying or selling in Panama right now.