Thinking of selling your home? Typically, selling a home is a drawn-out process that requires hiring a realtor, listing your home on the real estate market, marketing your listing, and staging the home for open house showings to convince potential buyers.
The process also involves taking care of significant repairs and sprucing up the property, hiring a lawyer to handle the sea of paperwork, and much more.
Due to the pandemic, most builders and buyers have primarily shifted to the virtual world in the real estate market for everything from virtual tours to digital contract signings.
In a housing market that is not doing well, you can have your house listed on the market for months without any interest from buyers. This is where a company like Properly comes in to change the game entirely.
In my Properly review, I will discuss the real estate company that serves as a one-stop-shop for buying and selling homes for Canadians. Hopefully, my review will give you all the information you need to determine whether Properly is worth your while.
Use: Real Estate Fintech
Wealthawesome Score: 4.2/5
- Sell your home with more convenience
- Searching for homes to buy is easier
- Completely free home value report
- Accurate home valuation
- Ability to sell for cash
- Only available in Calgary and Ottawa
- Pricing tool doesn’t work for apartments or outside of Calgary and Ottawa
- Slightly higher fees than a realtor
Summary: Properly will direcly buy or sell your home from you for minimal hassle in certain cities in Canada.
What is Properly?
Properly is a tech startup company founded by Anshul Ruparell, Sheldon McCormick, and Craig Dunk in 2018. The company’s basic idea was to introduce the convenience of modern technology to the real estate sector to facilitate buying and selling activities in Canada.
The Toronto-based company offers a technology-driven method for Canadians to buy and sell homes and circumvent several painstaking aspects of traditional real estate transactions. Rather than offering itself as a marketplace to bring buyers and sellers together, Properly purchases the real estate after providing you with an accurate estimate of your house.
The company raised $22 million in Series A funding in 2019 that enables it to make cash offers instantly for your property so that it can take care of the aspect of selling homes. As I write this, Properly’s service is available in Calgary and Ottawa. However, it plans to expand its services to other cities and provinces in the coming months.
Features and Benefits of Properly
In this section of my Properly review, I will discuss the company, all its features, and the benefits you stand to gain from using the platform to buy and sell homes.
1.Ease in Selling a Home
The first benefit of using Properly has to be the opportunity it offers potential sellers to get the property off their hands for a fair valuation. Rather than merely a marketplace that connects buyers and sellers, Properly speeds up the process for sellers.
Categorized as an iBuyer, Properly uses technology to accurately estimate the value of your home in an instant, based on various factors. Once it has an estimated value, the company makes you an offer to buy your home without obligation within two business days. You can sell your home to the company for cash payment.
Properly has set criteria for your home to qualify before it makes you an offer. For instance, if you have a property in Ottawa, the price range must be within $250,000 and $700,000. For homes in Calgary, the property should be valued within the range of $250,000 to $485,000.
Properly uses advanced computer algorithms that predict the value of your home with 99% accuracy. The algorithm factors in several aspects, including the actual selling price of homes, the real estate market trends, and unique features in your home that help it stand out.
Should you accept the offer that it makes, Properly offers a third-party home inspection to calculate the cost of repairs, if necessary. Properly undertakes the cost of the home inspection to make the process entirely free for you. After the inspection is complete, you can choose when you want to move out. This gives you the freedom to move out without overlapping mortgage payments and receiving your certified check.
2.Profit Share Guarantee by Properly
Properly goes beyond buying your home from you. After it purchases your home, Properly makes any necessary improvements on your home before it sells your home on the open real estate market.
If the company makes a profit, it gives you 50% of the profit within ten business days. The profit share guarantee is an ideal aspect that helps you get potentially more for selling your home. If there is no profit, you do get to keep the amount initially paid to you by Properly.
You can track the price of your home’s listing on Properly’s platform to confirm its actual price without worrying about transparency issues.
3.Ease in Buying a Home
Properly also facilitates the sales of homes. After it makes the necessary improvements on properties it purchases, Properly lists the home on its website for interested buyers. If you want to buy a home through Properly, it connects you with a full-service realtor who helps you find the ideal home based on your requirements.
The client advisor who helps you find the home will be provided to you free of cost until you find the right home and close it.
4.Properly ProperPrice Report
Properly does not limit itself to providing the home value to people who want to sell their homes. Even if you do not plan to sell your house or buy a house, you can use its free tool to track the value of your home over time.
ProperPrice report is an automated valuation model that uses information through more than 75 data sources to accurately compute and provide you with an estimated value of your home.
The tool works automatically without requiring much effort from you. Properly claims an accuracy of 99% for its ProperPrice report based on results of over 125,000 homes sold by the real estate company.
I tried the tool out for my parents’ home in Edmonton, but because Properly does not operate there, it gave me an error message. When I tried to pull up the old apartment I used to live in Calgary where Properly does operate, it showed me this error message, so it seems like the tool doesn’t work for apartment buildings yet:
Cost of Using Properly
As convenient as it brings, using Properly is not entirely free. If you are buying and selling your home using Properly, you should expect to pay a flat fee of 5.9% for the selling price. If you choose to only sell your home to Properly, the fee goes up to 7.9% of the final selling price of your home.
The 5.9% to 7.9% fee might seem a lot for some people, but it comes with additional convenience. When you buy or sell through traditional real estate avenues, you have to add the hassle of open houses, paying the fees to lawyers, manage and pay the cost of repairs, clean the home, and pay a realtor a fee of 4-5%.
Properly offers you the opportunity to circumvent those costs, save significant time, and the stress that comes along with it. It also guarantees your ability to sell your home. Properly works with total transparency when it comes to the costs, and it can provide you with excellent value for your money.
Other Benefits of Using Properly
Using Properly to realize your real estate goals gives you several opportunities to benefit, including:
- Selling your home for cash.
- No waiting for months to sell your home.
- Convenience in managing the time to close the deal to avoid overlapping mortgages. It allows you to choose the closing date 5-65 days in advance.
- Provides you with a proven 99% accurate home valuation.
- Properly provides you with a guarantee for 50% profit share generated after it sells your home in addition to the value it paid you to purchase the property from you.
- You get to sell your home without worrying about repairs, maintenance, or any lengthy processes with lawyers.
- Properly provides you with a third-party home inspection free of cost.
- You can track your home’s value for free through ProperPrice, even if you don’t plan to sell.
- Properly matches you with top-rated real estate agents if you use Properly to buy a house.
Alternatives to Properly
If you go through the traditional channels to buy or sell real estate, there are many expenses and procedures you have to go through to make the transaction. The process can take anywhere from a few weeks to several months from the point of making the initial decision to close the deal.
Even if you do not plan to sell your home, but you need to know the estimated value of your home, you have to go through a lengthy process to find out. Typically, you can get the most accurate estimate through traditional channels like home appraisal services.
The exact cost of finding out the value of your home can value drastically. If you are getting your home appraised in Ontario, you can expect to pay between $350 to $700 for the services of a professional real estate appraiser to do the job.
Currently, there are no alternatives to Properly that offer similar services in Canada.
When doing this review of Properly, I was hoping to find a lower-cost solution than having to go through a realtor; however, I was a bit disappointed to find out this wasn’t the case. I believe that true disruption of the real estate industry will happen when there is a solution to the high-fee realtor problem because I know that people hate to pay those fees.
With the real estate market being as fickle as it is today, depending on which province in Canada it is a huge challenge to either sell or buy a home for good value. A service that can help you sell your home quickly in return for cash payment can be seen as a breath of relief today.
Between its ProperPrice tool and its overall service, if you’re looking to make a quick home sale in Calgary or Ottawa with minimal hassle, I recommend that you give Properly a try.
For related reading, check out my list of the best real estate investments in Canada.