For New Agents: What’s It Like Being a Real Estate Agent in Tel Aviv?

I’ve been meaning to write this post for some time, and of course being the overworked realtor in Tel Aviv that I am, where each day is nothing like the other – I just haven’t had the time. But — since I get a fair amount of emails and inquiries from ‘Olim’ and expats looking to break into the real estate business, I thought it might well be the right time to write a post about what it’s really like and to share some of my opinions and insights on the job.

Since I’m based in Central Tel Aviv, I focus on the Central Tel Aviv market and therefore cannot say much about other areas of the country, but basic rules to the job apply to every city.

I am going to start a monthly series based on answering questions that I receive quite often via email, as well as sharing some of my own insights. Also I would like to say, please remember that I will be sharing just my opinion and experience, so if you have any questions, feel free to drop me a line or let me know in the comments below.

I’ll start off with some basics, which are the most frequently asked questions I get, just so you have a general idea. I will then go into more depth, where each post will be focused on a question / aspect of the field to help you get a better understanding of the job and what it’s like, and hopefully will help you jump-start your career .  

First off –  Newsflash: it’s not easy, especially in a market like Tel Aviv, where seriously, real estate agencies and brokerages open (and close) every week . It’s no rocket science either, but like any profession – you either have what it takes or you don’t.

Every job requires training or experience, a certain work ethic, and the right expectations going in. There seems to be a misconception that being a real estate agent is an easy, glamorous job… that all you have to do is hang a “for sale” sign and your phone will immediately begin to ring, and the sale (A.K.A your commission) will be done in a week, ten days tops.

Think again.

Sure, it can be fun (I personally enjoy it very much) and yes you can make a great living out of it, but every deal is different and there will be some clients out there who will most likely not end up closing with you, which can mean time gone to waste and no money for you. Every real estate agent out there will attest to this – so you have to take the good with the bad, like all things in life.

Licensing:

Before digging any deeper on what becoming a real estate agent in Israel is all about, earning your realtors’ license, is first on the agenda!

I’m often amazed at how many agents out there are working in real estate without a license. Not only is this illegal but highly unprofessional and if you want your clients to see you as a professional, you need to be professional and begin by earning your license.

All real estate agents in Israel are required to pass a licensing exam and be registered by Israel’s Realtors Registrar; and in order to receive your real estate license, you must first pass a real estate license exam in Hebrew, and there are no shortcuts.

Both the booklet and exam are currently only in Hebrew and the courses preparing for the exam are mostly offered in Hebrew.

Most will find this part intimidating, especially if you have little or no Hebrew and some will even stop here and drop it all together in fear of having to deal with the written material. Although the questions aren’t too difficult (as long as you know and understand the material, of course), the exam itself is written in high level Hebrew and the questions tend to be tricky.

Regardless, know this: if you wish to work as a real estate agent in Israel – you must first pass the exam and earn your license.

Read more on our FAQ on the real estate license exam.

Language:

Being able to communicate in Hebrew is very important. You must have a good command of the language and be at ease when speaking. Having said that, Tel Aviv is known to have a big ‘Olim’ community, and given that most of its’ buyers are foreigners (mainly from Europe with a strong emphasis on the French, Italian and German clientele), communicating with clients in English (and in any other language) is very common and acceptable.

Home owners (A.K.A sellers) are a different story; as the majority of them are locals and do prefer a native Hebrew speaker work with them on the selling of their home, given the nature of the Tel Aviv market, your mother tongue can be a great advantage as long as you bring in the right clients (buyers / renters).  

The most important part of your Hebrew skills comes at the negotiation process (which I’ll cover in another post), where your understanding of the laws and knowledge of the actual sale process is vital to the success of the sale and to your brand image.    

Skills:

If you have previous experience in real estate, then you obviously have an advantage, but in overall one does not need any previous experience in Real Estate. However, if you have worked in sales, then you’re off to a good start.

With that in mind, you do need to know the laws and what closing a sale / rental in Israel involves, and apart from being good a salesman, your knowledge on the actual transaction is crucial.

Although in the end it is about selling homes, it’s a business where you work with people, and having good people’s skills is a must-have to earning your success.  

This is no ordinary sales job, and with long sales cycles and complex decision-makings, you really need to bring in your ‘A game’ when it comes to people’s skills.

It’s the type of job not fitted for everyone and as it is in any other business, it has its highs and lows, its pros and cons and it’s no surprise that so many agents cycle in and out of the industry.

You need to be energetic, have a positive attitude, be highly motivated to succeed and have the desire to build a profitable business as it can take time until you close your first sale. Generally, it can take between 2-4 months, so you need to be financially prepared to support yourself during that time.    

Benefits & salary:

Without going into too much depth with the actual work routine (I will do so in my next posts, so makes sure to stay tuned), as it is in any business you really need to be committed and put in the time and effort it needs before you start seeing results. After all, real estate is a marathon — the problem is most treat it like a sprint and quit well before the finish line.

When most, if not all, of my clients are foreigners, guiding them through every step of the way, being their trusted advisor and making the process of purchasing a home in Israel a dream come true, is a feeling like no other. And that’s what motivates me. Knowing that I was part of such an important process in someone’s life, is a satisfaction beyond money.

It’s a tough job; with long hours and running around all day meeting people, it can get exhausting. Adding the fact that it can take a couple of months until you close your first sale, you really need to find that one thing to hold onto to keep you motivated.

There, I said it. Now that we have that out of the way, I’ll move onto THE MOST common question and understandably so: generally real estate agents charge a commission of 2% + VAT from both the buyer and the seller and one month + VAT both from the owner and renter – given that they have a written and signed agreement with both regarding the commission. Without going into too much detail, bear in mind it is very common in Israel for clients to negotiate on brokers’ fee. I guess it comes from that general feeling that anyone can negotiate on anything… but as a standard the fee is 2% + VAT (which is 17%).

In most cases real estate agents co-broke, which the commission is then split between the agents, normally on a 50/50 basis (unless they decide otherwise). I strongly advise to have a written and signed agreement here as well, just so all is clear on all fronts.  

Some figures: depending on where you end up working (as each office offers a different commission / salary method), as an example, an average commission on a 2,500,000 NIS sale would generate a 50,000 NIS commission (in the event of co-broking), or 100,000 NIS of which the agent gets 50% and the office 50% (again, depending on the office you end up working for).

It’s a popular profession that draws people from many different backgrounds due to its flexibility and money making potential.

The benefits are definitely the satisfaction of making a very good living and being your own boss. With that in mind, the salary range depends on your people skills, motivation and the amount of time and effort you are willing to dedicate to the business.

Having your own schedule and running your own business also means great responsibility, so you really need to be on top of things.

Stay tuned for my next post.

Are you looking to break into the real estate business in Israel and find it all confusing?

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