How To Avoid Making
Mistakes in the Purchasing Process
(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)
As an experienced realtor, I realize a vital part of my job is to make sure my clients have a concrete understanding of the current market conditions and the purchasing process.
Many times, my clients are not aware of nuances that are different in the Israel real estate market as opposed to abroad. Here are my biggest tips for any prospective clients who are starting their property search.
Many times, it takes a few trips to Israel in order to educate yourself on the market conditions. However, many times, I find clients have not prepared themselves before coming to look, which would save them a good amount of time and money.
If you are coming on a trip to look at Israeli real estate, have the necessary things set up so that if you find the apartment that you are looking for, you can move on it.
Preparation includes hiring a lawyer, working out finances, figuring out how you are moving your money, etc… your broker or lawyer can point you in the right direction but remember always make your own choices of professionals and seek out additional recommendations if needed.
There Is A Right Order
Asking the right questions and finding out the necessary information is extremely important when purchasing Jerusalem real estate.
However, when you put in an offer, it is based on good faith. No contracts are signed, and you are not committing to anything when you put in an offer.
If there are details that come to light during due diligence before signing or if the inspection goes badly, you can back out of the deal.
If you like a property, there is no reason to delay putting in an offer. The inspections and necessary due diligence occur after putting in a good-faith offer.
Use A Real Estate Attorney
Too often, my clients tell me they are using a cousin or a family friend that is a lawyer in Israel. While this is their prerogative, I highly recommend using a specialized lawyer.
Not all attorneys have been updated on the new construction laws and specific nuanced laws in regard to TAMA 38 projects, and not using a specialized real estate lawyer can cost you.
Thinking You Can Beat The Market
There is no point in looking for an apartment in Jerusalem thinking that you will be able to negotiate with the seller for an incredible price.
Today’s market is a seller’s market, with no supply and extremely high demand.
If you give a lowball offer, it may annoy the seller and he may not be willing to talk at all. Negotiating 5-10% below the asking price is not smart in today’s market.
These are my top tips for prospective buyers in the Israel real estate market.
Entering the market as a foreigner can sometimes be confusing but does not need to be.
Make sure you surround yourself with a team of experts that can guide you and help you make a successful purchase.