What Is a Shuma (Bank Property Valuation) in Israel?

A Shuma (שומה) is the professional appraisal an Israeli bank orders on a property before approving a mortgage. A licensed appraiser (שמאי) inspects the property and issues a valuation that the bank uses instead of simply trusting the agreed purchase price.

The bank calculates your maximum loan using the lower of the purchase price or the Shuma value. If the appraiser values the property below what you agreed to pay the seller, your maximum mortgage shrinks accordingly, even though the price you owe the seller doesn't change.

Why it matters for a buyer: in a fast-moving or overheated market, purchase prices can run ahead of appraised value. Ask your mortgage broker how much cushion to expect between the price you're paying and a realistic Shuma, so a low valuation doesn't blow a hole in your closing budget at the last minute.

Source: Bank of Israel mortgage lending regulations; Israeli Chamber of Real Estate Appraisers