(IsraelNN.com)
 
“I have $250,000 and want a three to four room apartment in Baka with a garden”, said the determined voice over the phone. “And also I would like it to be within walking distance to the Great Synagogue, because my husband likes it there.”

The agent (me) felt a bit of frustration as he knew this goal could never be achieved. “Well, I have a first story, large 3 room apartment on Derech Beit Lechem, near “tzomet habankim” with a small open terrace for $270,000.”
“Does it have a garden”
“No”
“Well, you didn’t listen to what I said. I said I must have a garden and I don’t want to spend more than $250,000.”

Potential buyers need to be aware of prices before they look to purchase a property. Many buyers are taken a back by the high prices and begin their search unprepared. The caller above was one such person. In 2006, when this conversation took place, an apartment with a garden in Baka would have cost at least $400,000.
 In the central neighborhoods prices for a standard 100 meter, 4 room flat can go from $350,000 to $800,000. In Talbia or Shaari Hesed a standard 4 room flat will start over $500,000 and may reach $700,000 or even $800,000. The same is true for the German Colony. In Kiryat Shemual or Rehavia prices begin at $400,000. In Baka and
Katamon prices are close to that of Rehavia but still a bit less.

Before you decide to buy, it would be good advice to find out what is your purchasing power. If your budget is $550,000, a respectable amount of money, don’t think that you can buy a 7 room duplex with a view and a garden in Rehavia. That would cost you well over a million. Half a million dollars could get you a nice 4 room apartment in the nice areas and you still may need to renovate. It is recommended to speak with a real estate about realistic goals. Any experienced real estate agent will be able to tell you what your can purchase with your budget.

Here is a brief list of ball park figure prices of some neighborhoods. Estimated prices are according to standard 100 meter, 4 room flats, in good condition, without any special features such as garden or large terrace.

Talbia: $600,000
Rehavia: $500,000
Katamon: $430,000
Baka: $420,000
Nachlaot: $350,000
Arnona: $300,000
Har Nof: $300,000
Ramat Eshkol: $300,000
Pisgat Zev: $180,000

Again, this is just to give the reader a general idea. Prices will go up or down based on the some of the following factors:
Renovations: Recent renovations will bring the price up; an apartment that needs complete renovation should be cheaper. Therefore if in Katamon a 4 room home would go for $430,000 but needs a total renovation, a fair price for it would be about $380,000.
The floor. The seller of a ground floor apartment would be able to get a bit more for his flat, as it is desirable for the elderly, families with small children and handicapped buyers. Fourth floor apartments with no elevator would be sold at a discount.   
The age and shape of the building.
Parking and storage room
Noise from the street.
Proximity to public transportation, parks, schools etc.
Additional building rights.
Style of home:  A home with the old Jerusalem style, high ceilings and arches, costs more. A “shikun” building, cheap row housing apartments are less. 
 
These are some of the factors that go into establishing the price for an apartment.

An agent’s observation: There is something common with most buyers and this may be an overall observation of human nature. Most people want something one or two levels over their budget. A person with $400,000 will look for a 5 room flat in Katamon when then budget can only buy a 3-4 room flat. A person with $200,000 in their wallet will look for something that costs $300000. Even people with a $1,000,000 budget will shop for homes that are being sold at $1,500,000. People shouldn’t think that if they had more money it would be so easy to get what they want because when they have more money they want more.

Baruch Finkelstein is an owner/broker of Remax Center in Jerusalem.

The office is in the shopping center of Ramot and Baruch has agents that service all of Jerusalem.