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Punta Pacifica, the exclusive coastal neighborhood in Panama City, is a unique property market, with its own attributes and challenges for investors looking to make a good deal. To those unfamiliar with the inner workings, it can be frustrating experience.

For example, many buyers are surprised to find that prices can vary tremendously from deal to deal. Two different people buy a similar residence in a different building and they might pay prices that vary by as much six figures? How does that happen?

For Punta Pacifica investors, who are looking for deals that produce the best return on investment and steady yields, this can be a particularly frustrating experience.

Here are a few tips that can help investors understand and navigate the unique aspects of the Punta Pacifica property market:

-Find the Pocket Listings: Many properties for sale in Punta Pacifica are never publicly advertised. There is no multiple listings service in Panama, so most properties are marketed through a network of personal contacts. Some may end up on a Web site, but more often the best deals are found through the pocket listings, or the back pocket inventory. If you don’t have access to these pocket listings, you’re missing out on the deals.

-Hire a Broker With a Track Record: One of the key questions to ask any broker or agent in Punta Pacifica is, “How many deals have you closed?” Even when buyers and sellers agree on a price, completely a deal can be a tricky and drawn out process. Many deals are never completed, tying up an investor’s deposit for months. Some agents may been able to connect buyers and sellers, but they don’t have the experience, knowledge and expertise to actually complete the deal.

-Investigate Your Broker’s Credentials: Ask for references from your broker. It may seem like a simple step, but you can learn a lot about how a broker operates from this simple question. If they can’t – or won’t – provide references, that’s a huge red flag. If they do offer references, follow up and ask tough questions of the clients. You’ll learn a lot about how the broker does business.

-Find a Good Lawyer: Panama property law is relatively straight forward, but it shifts constantly and there are nuances that only an experienced lawyer can provide. A good broker should be able to offer a referral to a reputable attorney.

-Price is Not Always the Bottom Line: In Punta Pacifica, more than most neighborhoods, price per square foot is not always the final indicator of the best deal. The quality of apartments varies tremendously from building to building, location in the building and services to the apartment. A price may sound too high, but it may offer more value, due to the building. Likewise, a good deal may provide less yield and more headaches.
These are some basic guidelines that should help you navigate Punta Pacifica. Investors will find many opportunities in Punta Pacifica, as long as they do their homework.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused exclusively on Punta Pacifica, the neighborhood of 18 towers perched on the edge of the Pacific Ocean