Ten Tips for Purchasing Real Estate in Jerusalem
- Identify the neighborhood/s you like best in the city and that are in your price range. For example, is being walking distance to the Kotel important? Would you consider more “Israeli” neighborhoods like pastoral Nayot or Beit haKerem with easy access to the light rail, Israel Museum, National Library, Givat Ram
- As you plan your budget important to take into account closing costs associated with purchasing property here. These include your realtor’s fee, attorney’s fee and state of Israel purchase tax. Generally, this comes to an additional 8-13% depending on the cost of the flat and the other associated fees.
- Mortgages to foreign residents are available with an option of either fixed or variable rates for approximately 50-70% of purchase price.
- Is there a Multi Listing Service (MLS) in Jerusalem? The answer is a resounding yes! It is called Shiran (website www.Shiran.co.il) only certified realtors may post properties there but all member realtors may show you any property listed on Shiran. This is very convenient for you the prospective buyer as it allows you to choose the realtor you are most comfortable working with, who will assist you in defining your criteria and then represent your interest as you view and negotiate any/all properties on the MLS.
- Important to choose an experienced realtor, with excellent communication skills, so that if you don’t see what you want this trip your agent will be in touch with you at a later time alerting you as listings matching your criteria become available.
- Choosing your attorney early in the process as you narrow down the options is often a good idea as he/she may have good advice to give you even before you are ready to sign a contract. Be sure to ask your friends and family as well as your realtor for recommendations of a local attorney who specializes in real estate law.
- Buying new construction or an existing flat? Each has its advantages and disadvantages. For example, buyers of new construction are often unaware of hidden costs requiring sometimes 20% or more (of the purchase price) to build closets, upgrading flooring, kitchen and bathrooms, etc.
- What are the next steps after identifying the property you wish to purchase? Having an intelligent and savvy realtor will give you many advantages. Your realtor can assist you in conveying a competitive offer, negotiating a good deal re: price, payment schedule and date of occupancy as well as when/if to schedule with an engineer and/or property appraiser.
- It is not essential but is often helpful to have a local bank account, for escrow transfers, etc.
- Having the right realtor will make some of the idiosyncrasies of the Israeli market comprehensible. Specifically understanding the multiple (bruto, net, ‘contour’) official measurements of a flat’s square meters!
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