Changing Homes in Israel: Should You Buy or Sell First?

Moving from a 3-room to a 5-room apartment, leaving an old property for a new one, getting closer to a school: changing homes is one of the most common real estate transactions—and one of the trickiest to finance. This process involves two deals whose timelines rarely align perfectly. Nadlan Center published, at the end of September and updated on October 5, 2026, the advice of a real estate professional on this topic. While these tips are primarily aimed at Israelis already living in Israel, they are also relevant for buyers abroad who are selling property in their home country to fund their purchase.

Two Strategies, Two Risk Profiles

Source: summary of advice published by Nadlan Center.

Sell First: The Safest Path

According to the author, this is generally the most prudent option. Once the home is sold, you know how much you have, when the money arrives, and what your real budget is. A buyer who does not make their purchase conditional on a sale negotiates better. The risk is selling without having found a new place: this can be limited by arranging a long enough handover period to buy without pressure.

Buy First: Only for a Hard-to-Replace Property

This strategy can be justified when the desired property is rare. But before signing, you need to consider what happens if the old home doesn't sell at the expected price or within the expected timeframe. As the deadline approaches, you become a pressured seller and lose your negotiating power.

The False Calculation of the Price Gap

Selling for 2.5M₪ to buy for 3M₪ does not mean you are missing 500,000₪. The author insists: this figure is almost never correct. You need to build a complete table for both transactions.

Two concrete warnings stand out from the article. First, the renovation: a budget of 200,000₪ can almost double, so it's important to get at least two quotes and keep a safety margin. Second, the purchase tax: many households believe they are exempt because it's their only home, but 60,000 to 70,000₪ may be due depending on the price. Our Mas Rechisha guide explains the principles.

The 20/80 Payment Schedule Trap

In recent years, many households have bought off-plan with a 20% payment at signing and 80% at delivery, or even 10/90, counting on selling their current home before the final payment and benefiting from a price increase. If the market stagnates, drops, or if the sale is delayed, they may face the final payment without the expected funds.

The current context makes this warning very real. According to the Bank of Israel's press release on September 1st, prices have fallen by 1.5% over the year and the stock of unsold homes remains high. TheMarker headlined on October 4th about the rising number of owners selling at a loss. Some developers are selling mainly thanks to discounts, as shown in our article on developer promotions.

The test proposed by the author is simple: does the operation still work if prices do not rise at all? And if the property is worth 5 to 6% less in three years? Simulate these scenarios with our payment schedule simulator.

Securing Financing

- Validate your borrowing capacity before searching. The key interest rate is 3.25%, and the next decision by the Bank of Israel is expected on October 21, 2026. Test your monthly payments with our financing simulator.
- Anticipate the bank's appraisal. If the bank values the property below the purchase price, the difference must be covered with your own funds.
- Know your buyers. Families, young couples, investors: depending on your property's target audience, the selling timeframe will vary.
- Coordinate the dates. Payments, vacating the property, loan disbursement, and key handover should all be scheduled together.

From Abroad

A buyer selling a property outside Israel faces two additional uncertainties: the sale timeframe in their country and the exchange rate at the time of transfer. The same rule applies: do not sign a firm deadline based on an uncertain sale.

One Plan, Three Experts

Moving to a new home is a unique project that should be managed as such. The total cost of the new property includes 18% VAT already included in the price of new builds, plus closing costs of 10 to 13%. The team to assemble: lawyer · broker · architect. The broker builds the financing plan and arranges the loan, the lawyer synchronizes both contracts and validates the tax aspects, and the architect estimates the renovation work and checks the plans.

IsraelStart lists 300+ new projects across Israel. Request a personalized assessment, with no obligation, to explore your buy-sell project.

Sources

- Nadlan Center — Changing Homes: Buy or Sell First? (09/27/2026, updated 10/05/2026)
- Bank of Israel — Monetary Policy Announcement (09/01/2026)
- TheMarker — More Israelis Selling at a Loss, Data from 24 Cities (10/04/2026)