Pearl Skolnik Realty- Advice and Links

There are many things to consider in determining a FAIR price for selling your property and a definite danger in the mortgage process of which you should be aware. Before purchase of a second-hand property, the bank sends out an appraiser to determine the correct price of the property. On the basis of his decision of the correct price for the apartment, the bank will grant a mortgage to the buyer. The danger is that if your apartment doesn’t meet appraisal, the bank will not grant the buyer a full mortgage.

A client of mine bought an apartment in Ramat Beit Shemesh for $200,000. The appraisal report claimed that the property was worth only $175,000. Therefore, my client had to come up with an additional $25,000 of his own money in order to buy the apartment. The truth is that the apartment WAS worth $200,000. In fact, the owners of the property in question received two offers of $200,000. The appraiser was, in fact, mistaken and perhaps lived a different area where conditions are different and had no way of really knowing what prices are in another area.

No one knows the correct price of a property better than the BUYER. He is no fool and has checked out enough apartments beforehand to know what the correct price is. If your apartment isn’t selling, the price is likely too high. (See “The Most Costly Mistake in Selling Your Home.”) The true measure of property value is what recent buyers paid for similar properties, not what the sellers asked for.

The REALTY AGENT also knows the correct price because he is in the field day and night. He lives the prices, so to speak, on a daily basis. The agents wants the property to sell as quickly as you do, and so will try to price it correctly. Contrary to belief, it is in the agent's interest that prices remain LOW, not HIGH, because it is always much easier to sell a property that is not expensive over a high-priced, upgraded property. Once a property is sold at too high a figure, it immediately affects prices in the neighborhood, causing an unnecessary upward spiral that does not always reflect true market values.

In 23 years working as a realty agent I only once came upon a property that was underpriced. A couple was asking $230,000 for their duplex in the Shaked project of Ramat Beit Shemesh on the advice of another agent. I told them it was definitely worth $235,000 in the market at that time. The next week they sold their property for $235,000. Prices must reflect true market value, supply and demand, not an artificial estimate by someone unfamiliar with the local market.

LAWYERS also know what apartments are being sold for in a particular district. They handle a sale after the deal is done, so to speak, and can base their judgement on sale prices rather than asking prices.

So what does cause the difference in price between seemingly similar properties in a particular area? Many people call us and ask us how much their apartment is worth. I always tell them that I would be doing them a disservice if I gave an estimate over the phone without seeing the property.

Some of the factors I look for are listed below, not necessarily in their order of importance:

Area	How far is the apartment from schools, shops, synagogues and other popular or important places? What kind of people live in the building and area? Do they own or rent? Rental properties are typically not cared for as well as personal property.
Size of building	Fewer families per building make the building more desirable and more expensive
Meterage of home	Some apartments have larger rooms than others and this will affect the price.
Upgrades and additions	Improvements such as air-conditioning, upgraded kitchen, window bars, screens, etc., add to the value of the apartment, if done in good taste.
View	Check whether there is a building slated to be built in the way of the view.
Exposure and Directions	An apartment open to more sides and thus better ventilated is more valuable. A southern exposure will warm the house, northern cool it. Check which is best for the area.
Private Entrance	Many prefer such an arrangement and this adds to the value of the apartment.
Entrance and Elevator	The fewer entrance steps to climb the better. Inside the building, few people today would consider more than two flights without an elevator.
Number and size of balconies	The larger and more numerous the balconies, the easier to sell the apartment and the higher the price.
Garden and its size	The presence and size of a garden will greatly increase the value of a property. A garden off a salon is more valuable than a garden accessed through a bedroom.
Storeroom	Having a storage room adds value to the apartment. If it has a window and/or plumbing, it can be used as a room. If it is next to the apartment itself, it allows owner to enlarge his home at minimal expense.
Parking	A registered parking space adds to the value of an apartment. A covered parking space can legally be converted into a room or enclosed garage and thereby adds even more to the value of the apartment.
Option to expand the apartment	If the apartment has an option for expansion (dead space behind walls, empty roof above, large yard, attached storeroom or covered parking), the value is greatly increased.
Quiet/ dead-end street	Less traffic makes the apartment quieter and the area safer for children.
Quality of Building	Stone buildings are worth more than stucco. A low quality finish can turn a building into a slum within one or two years. Check if the builder is known for building well and using high quality materials.