Sell ​​the property today with tomorrow's prices?

Many people are debating whether to sell the property for various reasons.

When is it worthwhile, when not and at what cost?

We checked with a bunch of professionals

David Rosenthal

07/27/2022

Wednesday, July 27, 2022, 11:59

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Old, new, everything is sold (Photo: Reuven Castro)

The real estate industry in Israel is going through many upheavals in view of the acceleration of construction that has afflicted us during the last decade, and therefore the term 'property owner' takes on great meaning. After all, it is not every day that we sell or buy a property, for many of us it is a once-in-a-lifetime transaction. A psychological matter, it is an important, substantial and well-informed action.

But even though the demand is strong, the market is not only for buyers. For various reasons, some own the property and wonder if it is time to sell. We asked experts how the price is determined, when it is best to sell and for how much.

The value goes up and up.

Will he go down?

Apartment designed by Shira Moskal, Hillel Architecture (Photo: Oded Smeder)

Ron Landsman (Photo: Nimrod Cohen)

Rafi Habsov (photo: courtesy of those photographed)

Ron Landsman,

CEO and owner of a real estate agency and a mentor to real estate agents, often comes across the 'million dollar' question: How much is the property in my possession worth? "In general, based on past experience, the value of the apartment increases by 10 percentages," he explains, "there are sites like Gov and the Medlan site from which you can learn the data. They allow the general public to check the price history in the building and the neighborhood and understand how much your apartment or house is really worth. The best measure you will get is to contact a real estate agent An expert in your area.

A good realtor knows the neighborhood and the prices and fluctuations, and will be able to give you an updated valuation."

Is it worth selling the property or waiting for another increase?

"The longer you wait, the more the value of your property will increase," replies Landesman, "but you also have to take into account inflation and the value of money, so if the plan is to buy another property it doesn't really matter. Those who sell for an expensive amount will have to buy another property for an expensive amount. It all depends The reason is that money is needed in the garden. If the need is for available money, it is better not to sell the property, because it has a very high value and you can mortgage part of it and get the amount without selling. Today, the option is to mortgage about 50 percent of the property."

"As far as old apartments are concerned, if I own a property in an old building, today we know for sure that in the areas of demand the buildings are going to be destroyed and rebuilt as part of eviction plans, so the price in the future will be significantly higher and it is not worth selling," says realtor

The owner of "Rafi Properties and Real Estate", "It is better to own the property and not sell it, and if we really need money, it is better to know what we are getting in the future, inform the buyers about the future of the building and sell accordingly."

Habsov explains that "this is the reason why there is a lack of apartments in the area the center

All the old houses are in the process of eviction, therefore the owners of the properties do not sell and even own empty apartments and there are no apartments on the market.

What until recently was considered a hard sell has turned into gold, especially when entire municipalities promote changes and entire complexes for urban renewal."

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Every apartment is snapped up quickly and the market shows no signs of calming down (Photo: Reuven Castro)

Sa'ar Peled (Photo: Public Relations)

Shira Moskal (Photo: Shani Halevi)

"The trend today indicates a decrease in the amount of transactions," says

, owner of Saar Peled Real Estate Appraisers, a real estate appraiser and vice chairman of the Real Estate Appraiser's Chamber in Israel. A review published by the chief economist at the Ministry of Finance indicates a 16% decrease in May This year compared to May last year. Does this decrease indicate a drop in prices? It is necessary to separate the two things. The decrease in the amount of transactions is partly due to a decrease in supply. Today, the total number of second-hand apartments that are on the market for sale is very low, therefore the amount of transactions has decreased. As soon as an apartment is marketed (as long as the price is realistic, of course), its selling time is very short. The increase in interest does contribute to a decrease in the amount of transactions, but it is not a solution to the increase in prices. In fact, the increase in interest makes transactions more expensive, creates uncertainty regarding the amount of financing required, and certainly does not help young couples and housing developers who want to buy an apartment".

"real world"

from Hillel Architecture, "If there is no opportunity or a critical situation of lack, there is no yield or adaptation to needs - it is not worth setting out.

In the end we buy and sell something, so in both cases we check what the market value is today.

If you sell expensive you will also have to buy expensive.

If both actions are at the same time, they will be at the same level.

"On the other hand, there is something happening in the field. The conservatives prefer to sell and then buy, and here they got a serious slap in the face, because the prices went up a lot and the money was worth much less. It was really unexpected, and this is something that needs to be taken into account, there are extreme cases that cannot be prepared for It is important to be alert to situations of opportunity, that is, if there is a property for sale in a good location and the price is attractive compared to the market, then this is a rare opportunity."

Couples invested and now they are getting divorced?

This is your chance.

Apartment designed by Shira Moskal, Hillel Architecture (Photo: Maor Moyal)

Moskal talks about other opportunities, for example selling a property below the market price, people who have already bought and want to sell, people who want to travel and get rid of the property: "Today there is more of a market of buyers than sellers. In normal times there are such opportunities, such as in divorce situations if both parties are willing to compromise Such a purchase is an opportunity."

Moskal also mentions that it is possible to improve the property: "There is no doubt that renovation is a complete departure from the comfort zone, and sometimes the renovation of one very specific thing can occupy a larger volume and result in a huge financial expense alongside heavy pressures. Those who wish to renovate in order to improve a property, should understand in advance The degree of suitability of the property in front of the renovation you want to do. A correct and precise improvement can 'transform' the property from end to end, with the right additions, a pool, a roof, etc., you can get a completely new property."

How would you estimate the price of your apartment?

"The only person authorized to value property in the State of Israel is a real estate appraiser," says Peled. What is reported is not always correct and this must be checked. Among other things, we will also refer to the date of the comparison transactions and an adjustment factor will be given with reference to the price level at the time of the transaction.

"Of course, you never know what the future holds, but before purchasing a real estate property, it is necessary to refer to the changes in the market and to understand that a real estate transaction is a transaction that has a long-term effect on the financial situation of the buyers. In addition, the purchase of a property often involves taking out a mortgage, and the amount of the monthly repayment must be taken into account, emphasizing on the various mortgage routes, some of which will be directly affected by the rising interest rate today. Real estate is an investment with low liquidity.

It is important to take this into account before purchasing real estate and investing the best of your money.

If the money is needed today, it is better to invest it in more liquid alternatives that are on the market."

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