Finding and purchasing an apartment in Jerusalem can be a challenging task, as there is limited availability of units that meet all of your criteria and high competition from other buyers.
To increase your chances of success, it’s important to be well prepared.
Keep in mind that sellers and developers may not have much patience in a low-supply market, so it is important to be proactive and assertive in your search.
Here are a few general tips to keep in mind:
Property Searching While on Vacation
Personally, I believe it can be challenging for clients to properly search for a property while on vacation in Israel.
Setting aside a short amount of time to view just a few properties may not provide a comprehensive understanding of the market and could lead to impulsive buying decisions.
To gain a full understanding of the market, I highly recommend dedicating a minimum of two to three days solely to property searching.
It is important to plan your trip strategically in order to view a variety of properties, and I suggest preparing beforehand by having a clear idea of what you are looking for and using your time efficiently.
Do Not Delay After Your Good Faith Offer is Accepted!
It is important to remember that a property is not considered yours until a contract is signed. If you are interested in purchasing a property, make sure you are in a position to sign a contract promptly.
Make sure your lawyer has the power of attorney or arrangements for signing.
Avoid delaying the signing process for several months with the assumption that the property is still available, as this can often lead to losing the property.
In Israel, the contract signing process typically takes two to three weeks, which provides enough time for proper checks to be made. However, if there is a valid reason for delaying the deal, it is important to be upfront and honest with the seller, and if they are willing to work with you, a reasonable time frame can be agreed upon.
Keep in mind that the seller may have other interested parties, so try to move things along as quickly as possible while still conducting the necessary due diligence.
Do Not Treat the Deal Like You
Are in the US!
It is important to keep in mind that there are usually no contingencies in a real estate deal in Israel.
This means that it is essential to have your inspector and lawyer ready to begin work as soon as the contract is signed and to have your financing in order.
Sellers will not wait for you to delay the signing process, so it is important to have these things taken care of before signing the contract.
Additionally, it’s important to understand that “tick all boxes” units are not typically priced for significant negotiation. It is not common to see drops in the price of more than 2% to 3%, and sometimes sellers may not be willing to drop the price at all.
Keep in mind that the goal should be to purchase the right property, not to focus on negotiating the price. A seller’s reluctance to lower the price should not necessarily be viewed as a negative.
Work Out How to Move and Exchange Your Funds.
Another important step in the property buying process is the transfer of funds, which can take time and should be organized as soon as possible. Consult with your lawyer about the way they suggest to ensure that the process goes smoothly.
The key is to be aware that moving the money can take time, and it may take even longer for the funds to clear. To avoid losing the deal due to delays in transferring or having the money ready, it’s important to plan ahead and be prepared.
If you are seriously considering buying a property in Jerusalem, it is important to make it a priority and follow all the necessary steps to be in the best position to make a purchase.
This includes preparing your financing, having your inspector and lawyer ready to begin work, and making sure that the transfer of funds is organized.
By having these things in place or nearly completed, you will increase your chances of success and have a smoother buying experience when you find a property that you like.
This article is based on the opinions of CapitIL Real Estate CEO and Co-Founder Ben Levene. Ben Levene is a Jerusalem real estate expert with over 10 years of experience, specializing in helping Anglos purchase real estate in Israel. To start your Israel property search, please contact Ben at +972-53-822-4336 or [email protected]