Yael Drel, themarker.com

Bernard Raskin, who founded Re / Max Israel in 1995, currently dominates an empire with about 100 branches across the country, while facing quite a few challenges. The image of realtors among the Israeli public is usually not positive, social networks and real estate information sites are now providing a lot of information competing in his business - and in the last two years the housing market has slowed down, which has caused a significant decline in the purchase of apartments in Israel.

One of the most significant measures that directly affected you was the expense of investors, which in the past accounted for 30% of the market. Today they are only 14%.

Ruskin: "There is a national hysteria on the real estate issue, and it disrupts the public's ability to take things seriously and conduct a cultural discussion. The discussion is emotional. People say: 'The investor is the reason why I can't buy an apartment.' In such a discourse, there is no real discussion about investors' contribution to the housing market, and it was a mistake to fight against them.

"Investors are important to the rental market because there are people who must rent - students, temporary workers, disadvantaged populations"

"They were unjustly seen as responsible for price increases, and Finance Minister Moshe Kahlon's policy succeeded in sending them to Portugal and Greece. In fact, the largest RE / MAX customers in Greece today are Israeli. So, while we are solving the discounted housing problem in Greece and Portugal, Rental rates in Israel are rising, all because investors have been expelled.

"The truth is that investors are important to the rental market, because there are people who must rent - students, temporary workers, disadvantaged populations. As more investors, there are more rental apartments and rents go down. After all, most investors who buy an investment apartment immediately seek to bring in a tenant, so what did we do? By banning investors from the market. "

This move was felt to drastically decrease your business activity.

"It was not a drastic decline, but we certainly felt a significant slowdown in 2017–2018. We saw a 17% -20% decrease in activity."

"Do not understand anything about the housing market, which is contrary to common sense: people buy apartments precisely when prices rise"

What do you do in such a situation? A 20% reduction is no small matter.

Patmos, Greece Shutterstock.com

"I'll tell you a secret. At that time, I thought it was actually a business opportunity to grow. In difficult times, we see how our competitors are responding. Most often, they go into a bunker, spend no money and develop business, but there is no such thing as stopping business - going forward or backward.

"These two years I put my foot on the gas and invested in development. We opened branches, recruited agents and launched a technology move with RE / MAX Europe, which allows us to digitally sign clients, and reveal to them all our scope of assets. For example, anyone looking for a 3-room apartment in Tel Aviv Second place and above, automatically receives all the assets that fit this category. This move cost NIS 250,000 to Ri / Max Israel. "

So, after two difficult years, what happens this year?

"The balance between demand and supply has changed significantly this year, and we see that in the market as well as in the mortgage data, which is at their peak. Then they will tell me I am interested, but it is inaccurate because it is necessary to distinguish between a situation where there are conflicting interests among market players, and where market players have interests. Similar sharp price increases are also wrong for us, I'm in favor of moderate increases. Stagnation is not good for anyone. "

Still, you prefer the prices go up, the young couples don't.

"There's something people don't understand about the housing market because it's contrary to common sense: People buy apartments precisely when prices go up. The reason is simple: When prices go down, people say to themselves, 'I'll understand a little more, maybe the price will go down,' or the other side are hesitant to sell "When the prices go up, and they fear that if they don't buy quickly - the price will rise again. The price drop does not bode well for the market."

So, what will happen to prices in your estimation?

"Next year, prices will rise, that's clear. That's because people are getting off the fence and returning to the market. However, there is uncertainty about government plans. We need to see what happens now. The outgoing government felt the need to intervene and disrupt the market. Although I believe Kahlon's intentions were Favors - cost per resident failed. I hope the next government intervenes as little as possible because when government intervention begins, they know how it starts, but don't know how it will end. "

Apartment for rent in Jerusalem Photo: Tess Shaplan

"Realtors regulator is public"

Let's talk about the DOJ's intention to stop the broker's license. The industry is booming, and you are among the few who support the course.

"Sites like Hand 2 or Madeleine are not our competitors. Most people can't dedicate themselves to the process of real estate"

"The license provides value to the mediators ' self-image that through the license they feel more respected, but in practice what is their contribution? The test, which is currently being conducted by the DOJ, is not at all relevant to the mediator's work. The test is scandalous. At least 50% of the mediators I know - who have Already licensed - they would not pass the latest mediation test. The test primarily tests legal knowledge, while a mediator is not legally allowed to give legal advice to his client. In the last test, for example, there were questions about judgments, which lawyers also did not know the answers to. .

And what about the argument that if the test is irrelevant, it should be changed? A situation where anyone can be a mediator doesn't seem to be a problem for you?

"No, because not everyone who wants to be a broker can be a broker. First of all, there is the public and customers. They are regulators. As soon as a person gains reputation and people remember how he helped them with the deal, he will gain more clients. Negatives and people will warn their friends not to come close to him. Whatever not everyone who wants to work for us can. Over the years I have flown more people from the industry than the Justice Department filter. "

What did you fire people for?

"Most ethical behavior, I've come across realtors who hide information and hide assets and quality of people is important. Berry / Max has free training once a week, and realtors can come and get a professional toolbox. I have a business interest in having as many mediators as possible in the market, but those who need quality control Realtors are not the DOJ, but we, the professionals. "

In an age when people search for apartments through groups and friends on Facebook, get information through sites like Madeleine where you can see deal prices in the area and detailed neighborhood information - maybe you don't need them anymore?

Apartment sign for rent Photo: Eyal Toag

"For me, sites like Hand 2 or Madeleine aren't our competitors. Most people can't dedicate themselves to the process of real estate, for all the complexity that it entails. Realtors have professional tools that the individual does not have, and there are also recommendations that make a lot of money for clients. "

What recommendation for example?

"I would recommend to anyone who sells a house to paint it before, it's no different than getting rid of before going on a date. Beyond such tips, our broker holds a large pool of assets that the client enjoys, and we have a large pool of about half a million users a month. A buyer who asks for a 4-room apartment on the second floor in Tel Aviv and at that moment we have nothing to offer him, he enters the pool and when a property that meets his requirements with another agent on the network, he can be exposed to it. "

So, don't you believe that technology will outdo the middlemen?

"No, because no website can do what the realtor does. I don't know of any country in the world where dealing with the concept of sucker is so extensive, and a good broker should save you money and you want to know that when you buy, you haven't missed a better offer. Real estate is not a scientific matter, but exposure to as many assets as possible is critical to making a decision. The real estate deals I've done in my life have almost always, with the exception of one transaction, with the help of realtors. "

"Broker must make proper disclosure if he represents both parties"

And what about the representation? Realtors today can represent both sides, no problem here?

"In the United States, by law each party is represented by another party, and in Israel many people are unaware that the mediator can represent both parties. As part of the Justice Ministry's initiative to revoke the brokerage license, a proposal was also made that the mediator must obtain written consent from both parties that he represents them, if that happens - this is a revolution. "

Old Town Naifly, Greece Photo: DIMITRIOS TILIS / Getty Images I

What is the scope of transactions in which you represent both parties?

"In my estimation, more than 50% of the transactions are unilateral (meaning that the broker represents only one party; JD).The desired situation is that we only represent one side, because we as mediators should strive to reach the position that we represent only one side. The day that happens, we will see an increase in the use of intermediaries. Many people in the industry may not like what I have to say, but in today's situation, proper disclosure should be made if both parties are represented. This will increase credibility and reduce suspicion and temptation in transactions. "

Is it legitimate to require an intermediary to represent only one party?

"Yes. We have a broker who works at the chain's branch in Hadera, which I consider to be one of our brokers' opening quarters, both in commissions and deals, and that's the rule for him.