For all of the excitement, joy, and fresh starts that colour a real estate purchase, there’s no denying that it also comes with stress and uncertainty – especially during a global pandemic.
For most people, this stress involves dollar signs. Or, perhaps more often, a lack thereof.
One Canadian real estate technology company has been busy eliminating some of this financial stress by enabling customers to buy their next home before listing their current home on the market.
Properly.ca enables homebuyers to unlock equity from their current home and finance their next home with a guaranteed sale. They’ll even pay your existing mortgage for you in the meantime (yes, you read that correctly).
The first-of-its-kind home upgrade service in Toronto reduces the stress from the home buying and selling process by allowing customers to list their home after they’ve already packed up and moved out. This eliminates the headache of living through staging, showings, and open houses – all inconveniences in normal times that have only been amplified during COVID-19.
The need for innovation in the real estate market has accelerated with COVID-19. While the Toronto real estate market inevitably took a hit at the onset of the crisis – with the Toronto Regional Real Estate Board (TRREB) reporting a 63% drop in sales volumes from March to April 2020 – it didn’t take long for the market to experience a sharp rebound. Between April and July, sales volumes grew by an astounding 345%, with the average sale price increasing by 15%. In fact, the average GTA home price hit an all-time high in July.
The traditional home selling-then-buying process simply can’t keep pace with market movements.
“The pandemic has made an already stressful home buying and selling process even more volatile,” says Anshul Ruparell, co-founder and CEO, Properly. “We’ve created a way for Toronto homeowners to feel confident when managing the biggest transaction of their life. The standard view is that you should sell before you buy or risk being left with two mortgages to carry. With Properly, you have the freedom to buy the home you love as soon as it hits the market.”
For Toronto real estate purchasers, this ability to buy the home that captures the heart as soon as it hits the market is an unprecedented luxury – especially in an ever-competitive real estate market where acting quickly is the only option.
So, How Exactly Does it Work?
In a sense, you get all of the benefits of working with a great real estate agent (Properly has those), but with many additional benefits for homebuyers and sellers. Properly lists its customers’ property on the market, sells it for the highest price, and guarantees a sale. In the unlikely event that a customers’ home hasn’t sold within 90 days, customers can rest easy (in their new home) knowing that they have a guaranteed sale to Properly. The company will buy the property from customers at their backup offer price.
The Entire Process Can Be Broken Down into 3 Easy Steps
First: Properly’s backup offer enables customers to secure firm financing from the bank quickly.
Second: Properly allows you to use your unlocked equity to buy your new home.
Third: Properly will professionally prep your old home and sell it on the market. The process ensures that customers avoid paying double mortgages, thanks to Properly picking up the mortgage tab on your current home until it sells.
Machine learning is front and centre of Properly’s business model. An algorithm enables homeowners to discover what their home would sell for on the open market. Customers are invited to simply type in their home’s address on the company’s website to generate a guaranteed backup offer.
“We were looking to make an offer on a home we loved in Niagara, but we needed to sell our condo in Leaside first,” said Courtney and Justin, a professional couple who turned to Properly to support them in their recent purchase and sale. “We wanted to move quickly and Properly allowed us to do so with confidence.”
Customers pay Properly a commission that is the same as what you’d pay a traditional agent, but also get the confidence of a guaranteed sale and the ability to avoid living through showings. For the risk-conscious set of real estate buyers, the 5% commission from Properly is a fair price to pay for the peace of mind knowing they can relax in their new home without worrying about their old one.
Interested in getting a guaranteed backup offer for your home? Find out more at Properly.ca.