Israel’s homebuyers have been steadily increasing in number. According to Bank of Israel figures1, the Israelis took out new mortgages worth NIS 116 billion in 2021, a 50 percent increase over the last year.
Even with such encouraging statistics, you must be sure that you are receiving a good deal on purchasing your home. As a result, your bargaining abilities will either make or ruin the deal. Here are some expert bargaining strategies to help you get the best deal on your dream home in Israel
The Initial Price is Only the Beginning
In Israel, the majority of the public does not pay the initial price of the property. The seller anticipates the buyer to counter their offer. This is why they set the initial price higher than what they expect to get. It sets buying houses in Israel much different from other parts of the world. Initial price negotiations are often conducted after inspection. You get an opportunity to renegotiate if anything unfavorable comes to light.
Bring in A Real Estate Broker2
Advancements in technology have reduced a real estate broker’s role in finding clients’ property. The proliferation of online marketplaces has made the broker’s job more of an advisory role. They are now responsible for coming up with the most substantial possible offer for your dream home while serving as your negotiation advisor.
When hiring a broker2, you should ask them about the process, approach, tactics, or methodology they use when negotiating. However, if they don’t have any methods, it does not necessarily mean that they are bad at their job. Real estate brokers are beneficial to individuals buying their dream house remotely. Having someone familiar with the market and neighborhood is crucial.
Study the Real Estate Market
House negotiations in Israel are often based on the market. Knowing the real estate market conditions is essential when negotiating your dream house. In competitive markets, house pricing varies significantly based on the quality of the housing stock and proximity to amenities.
An experienced real estate broker should be familiar with the big picture and the micro details that lead to housing demand. The broker should also understand the market climate and read if the potential buyers are building up for a bidding war or looking less urgently. If there is demand for a particular house, negotiations will not be as effective.
Leverage the House Inspection
Some agents and home sellers may not like it when you leverage the house inspection, but you have the absolute right to do so. There is always some flexibility when you discover defects in the house. Home inspectors usually inspect the roof, the foundation, look for water penetration or condensation, etc. After the inspection, they will write a detailed report of the state of the house. Go through the inspection report closely, and if there are any issues, you will have the upper hand to renegotiate the initial price or ask the seller to sort the repairs before you purchase the vehicle.
When looking to negotiate the price of your dream house, there are two phases involved. The first phase is when a potential buyer submits their offer hoping it will get accepted. The second phase occurs after inspections of the house, and the seller discloses material fact (material facts is critical information that is crucial to the buyer’s decision). Apart from the tips offered above, it would be best to focus on learning as much as you can about the seller or real estate agent.
1 https://en.globes.co.il/en/article-record-nis-116b-in-mortgages-taken-in-israel-in-2021-1001398106
2 https://bhii.co.il
