Acquiring real estate is a significant step in life, and this can be especially true when it comes to investing in Israel. Whether you are a new immigrant, an investor, or simply looking for a second home, investing in the Israeli real estate sector can be a rewarding experience. However, this process can sometimes seem intimidating, especially if you are considering a direct transaction with a homeowner. This article aims to help you navigate the challenges of acquiring property in Israel directly from owners.
Advantages of Purchasing from Owners
In Israel, investing in real estate directly via the owners offers several advantages. First, it allows you to avoid agency fees, which can save you a significant amount of money. Indeed, agency fees in Israel are typically between 0.5% and 2% of the sale price. Therefore, if you buy an apartment worth 2 million shekels for instance, with a 2% agency commission, you will save 40,000 shekels by buying directly from the owner.
In addition, purchasing from an owner allows direct negotiation between the buyer and seller. This may offer greater flexibility in the terms of sale and also enables the buyer to ask specific questions about the property and its history. For example, you can ask the seller why they are selling the property, what renovations have been done, or what the neighborhood is like. This information can be extremely valuable when making a decision about where to live or invest.
Finally, by buying directly from the property's owner, you eliminate any conflicts of interest that can sometimes arise with real estate professionals. This can give the buyer greater confidence in the process and ensure that the interests of all parties are aligned.
Challenges of Purchasing from Owners
However, purchasing from owners is not without challenges. It requires a thorough knowledge of the Israeli real estate market to avoid costly mistakes. Moreover, it is becoming increasingly difficult for buyers to find properties for sale that are not put on the market by a real estate agent, meaning that you have less options to choose from and might ultimately have to pay real estate agent fees anyway.
It can also be complicated to understand and manage the legal and regulatory aspects without the help of a professional. For example, there are specific regulations in Israel concerning property rights, property taxes, and zoning rules that can be difficult to interpret with no prior knowledge.
As mentioned earlier, a challenge that is becoming increasingly frequent for people wishing to invest in real estate or buy a property in Israel: fewer and fewer properties are being posted for sale directly by the owners. This is not the case for rentals and vacation rentals in Israel, which are still very often rented directly by their owners, who publish them on social networks and real estate listings sites, such as Immo Israel. There are however some properties offered for rent by real estate agents, but without commission (which is usually one month's rent). The real estate agent is then only paid by the owner.
Respect for agreements with real estate professionals
As a buyer, it is important to understand that if you visit a property with the help of a real estate professional, you should not try to acquire the property directly from the owner without paying the agent's fees. This practice, called short-circuiting, is not only unfair to the agent who invested time and expertise to help you, but can also have legal consequences for you. It is therefore essential to respect the agreements you have made with your real estate agent and to ensure you pay the agent's fees.
In summary, investment in the Israeli real estate sector directly via the owners can prove to be an attractive option for those who are willing to put the effort in. It is crucial to understand the Israeli real estate market well and be prepared to navigate the complexities of the purchasing process. With good preparation and a thoughtful approach, investing in properties for sale by owners can prove to be a rewarding and financially advantageous experience in Israel.
The Immo Israel search platform allows you to filter results so as to see only properties published by owners. Use this feature to simplify your search for real estate in Israel offered directly by owners and find the one that meets your needs.