Every local market has its quirks and Jerusalem is no different. Our goal with this article is to outline some of the key points that you need to know when working with a Real Estate Agent in Jerusalem.
The industry standard rates in Jerusalem are
SALES TRANSACTIONS - 2% plus Maam (sales tax - 17%)
RENTAL TRANSACTIONS - 1 month plus Maam
Unlike many overseas countries, in a real estate transaction, generally both sides of the deal (assuming that they are both using an agent) pay commission. This contrasts with other countries where the seller is the only party to pay a commission to their agent (who will split this with the buyers agent if there is one). It is therefore important to know to include these fees in your budget.
It is also acceptable in Israel for an agent to represent both sides in a deal. In this scenario, you have to be very aware of who you are dealing with - this sort of arrangement only works with someone that you are sure you can trust.
As with anywhere in the world, finding a real estate agent that you can trust is one of the key criteria that you should look for when looking for someone to represent you. We have a number of testimonials on our website and would be delighted to put you in touch with our clients if you would like to speak to someone directly.
Working with Other Agents
The system in Jerusalem (and Israel) is designed to encourage agents to work with each other in order to improve the customers ability to access properties and buyers (depending on what side of the transaction they are on). Since the agent for each side will get commission from their customer directly, they are able to work with other agents without the worry of having to negotiate or agree a deal with that agent in order to get paid.
It is also important to realise that once you have found an agent that you like, because of the way the commission system has been set up, they can take you to see any properties that you happen to come across. In fact, as a buyer it can be better not to call property signs directly since in that scenario, you are likely to be involved in a transaction where the agent is representing both sides - this way the agent that you already trust can take you to the property and continue to represent your interests.