The property market in Jerusalem is currently rolling along speedily. In my areas transactions are occurring and that include American buyers who have never seen the unit.
I want to examine the pros and cons of buying an apartment without seeing it.
1. The first point is to take a position. I have a number of buyers acting as if they believe they are beating the market. They feel that the expected rush to Israel after COVID-19 is not only keeping the local market running but they truly believe prices will rise sharply. This is much more common currently than ever before. Recently I have closed deals with retirees and holiday buyers who do not know when they will get to see their apartments.
To further clarify, deals I am currently working on with foreign buyers range from 1000 to 3000 SQF.
2. You must go to any property you are seriously considering. The reassurance (or opposite) after they walk through this expensive purchase will be extremely beneficial to you.
3. You need an extremely strong team of professionals. If you are going to follow your dream from thousands of miles away you must have a strong broker, lawyer and mortgage broker. Always ask for referrals from the professional and always grill them on their market knowledge and understanding. Your professionals always need to offer great value but now even more so they must go the extra mile. Ask my wife or check my phone. I am in the states remotely most evenings going through properties, comparisons and walkthrough videos. I believe I need to offer value and service and I try to pass on my strong market understanding to help buyers make as informed a decision as possible.
Your professional team should be available. It might surprise you but even I must sleep and also remember family commitments, but when you pay for a service you need to receive support and answers. My team is very professional. Your lawyers and mortgage brokers must be the same. Only use people you believe have your best interests at heart. You must believe your professional will tell you to walk away from a deal even at the loss of a significant commission or fee.
If you do not trust this would happen I myself would not engage the services of that person.
I know as a deal maker agreeing on the price is not even half the job. Just as important is managing the process to get the deal through due diligence or if something is found not suitable, to either walk away from the deal or resolve the issue.
4. Technology is an amazing thing. Whether it’s the countless virtual walkthroughs, a WhatsApp video chat, or measuring room sizes in your home against the unit size in Israel, we are going to do everything we can to get you all the information and understanding that you need. No question should not be asked. No question is silly. This is a massive financial purchase.
5. You are not alone!
Though hard to consider buying from abroad, you are not considering doing something others are not. Remember buying a brand new unit from plans is exactly this, whether from abroad or around the corner. Like that process you just need to understand the process and what you are entering.
6. Once you have evaluated your options and believe you have the right apartment you will hopefully close a deal.
Closing a deal involves due diligence from a real estate attorney and often involves mortgage finance and transferring money from abroad. It often also needs modernization or a new bathroom. If the deal closes you may want a property manager. Remember the horror stories you have heard. You will not hear the many more stories of when something runs well as it is not interesting.
This leads me to my new panel I set up with a group of fellow skilled professionals, “Now Is The Time” buying or renting in Israel
There will be two webinars this Sunday on understanding the process, one at 10 a.m. and one at 1 p.m.. Visit realestate-il.com for free registration so you can start to really understand the process of buying in Israel.
Ben Levene is the owner of Capitol Real Estate. He can be contacted at +972538224336 or [email protected]. Visit www.capitil.com.
