Israel’s First Developer Offers “Trade-In” on Old Apartments

For the first time in Israel, a residential developer is introducing a Trade-In Apartments model for homebuyers. Av-Gad is launching a new track that allows buyers to exchange their old home when purchasing a new apartment, with the old property valued based on an appraisal minus 6%. The company then markets the apartment on behalf of the customer, and in certain cases purchases it directly. According to Av-Gad, this model offers buyers certainty and stability in the move to a new home.

Av-Gad Holdings, a real estate group active in residential development, construction, and urban renewal, announced today that it is introducing an unprecedented Trade-In Apartments mechanism that enables buyers to convert their existing home into a trade-in toward the purchase of a new one.

The initiative aims to address one of the major consumer barriers in today’s Israeli real estate market: the difficulty of selling an existing apartment while buying a new one, especially given the slowdown in second-hand transactions and its impact on new-home sales. Research commissioned by Av-Gad through New Wave, surveying a representative sample of 200 homeowners considering a new apartment from a developer, found that 49% of Israelis cited selling their current home as one of the main challenges in purchasing a new property, alongside raising equity and covering ancillary costs.

The research also shows that 40% of respondents intend to sell their home concurrently with buying a new one—a behavior pattern reflecting the need for an organized Trade-In Apartments track. Additionally, 71% of respondents said they would consider purchasing a new apartment through a trade-in mechanism, were it to be offered. Key advantages cited include a guaranteed sale of the existing home, significant savings in time and effort, greater certainty in the transition between apartments, and avoiding direct dealings with agents and brokers.

Av-Gad’s Trade-In Apartments track is available to buyers who sign a purchase request in one of the company’s 14 projects. The value of the home designated for trade-in may be up to 70% of the price of the new apartment. The customer receives a list of up to ten certified appraisers and chooses one to conduct an independent valuation, which is then provided to the company. The final trade-in price is set according to the appraiser’s value, minus 6%. Thus, the price at which Av-Gad is prepared to buy the old apartment is determined in advance, even before the signing of the new-home sale contract.

Once the new apartment is purchased, Av-Gad manages the old home through the Trade-In Apartments mechanism. A licensed marketer is appointed to sell it on the open market, and the company covers all marketing costs. Any amount received from the sale—even if higher than the appraised value—is transferred to the customer. If the apartment is not sold by the delivery date of the new home, the company may approve a lower sale price and cover the resulting shortfall. Alternatively, the customer may request that the company purchase the apartment at the original appraised price minus 6%, subject to the company’s discretion.

Av-Gad is currently marketing approximately 700 new apartments in 14 urban renewal projects across 11 cities, including Tel Aviv’s Bavli neighborhood, Ramat HaSharon, Herzliya, Bat Yam, Holon, Ramla, Raanana, Hod HaSharon, Kfar Saba, Petah Tikva, and Rishon LeZion. The launch of the Trade-In Apartments track will be accompanied by a broad advertising campaign across television, radio, outdoor, digital, and social media, led by the Inbar Merhav advertising agency.

Av-Gad Holdings is a residential development and construction company specializing in urban renewal. It was founded in 2009 by Col. (res.) Michael Razon, chairman of the company, together with attorney Raem Razon, serves as CEO. The company focuses on high-demand areas and has extensive expertise in executing urban renewal projects.

Since its establishment, the company has completed and delivered approximately 701 housing units across 21 projects nationwide. Today, its pipeline includes 26,760 units at various stages of execution, planning, and land reserves, including 278 units under construction and 1,948 units expected to begin construction within the next 12 months. At the time of publication, the group holds rights in 18 projects categorized as development and planning, which will add approximately 1,407 housing units for marketing, along with another 18 land-reserve projects expected to add about 2,251 units, plus commercial and office space. Additionally, the company has 25 other projects classified as various stages, expected to add around 5,977 housing units for marketing.

Attorney Raem Razon, CEO of Av-Gad: “Today, we are launching a long-term initiative that we have been developing behind the scenes for several months, aimed at changing the purchasing habits of new apartments in Israel—similar to the transformation that reshaped the car market about 30 years ago. We believe that this move will significantly change how new homes are purchased and will give buyers confidence, certainty, and simplicity, removing the biggest barrier in the process. It is a genuine breakthrough for the market and for families in Israel, one that will change the way people buy homes and help them upgrade their living environment and move into a new apartment.”