A Canadian tech startup is hoping to change the way Canadians eventually end up buying and selling houses.
In an interview with a media outlet, Properly CEO Anshul Ruparell said: “We are in an era when transparency and convenience and choice is being offered to homeowners.”
Properly is what’s known as an institutional buyer or “iBuyer.”
Also known as direct buyers, iBuyers use algorithms to determine the market value of a home. They can make an initial offer to buy the property directly from the homeowner within 48 hours, and the whole process can be completed in a week, with the seller setting the closing date.
Though based in Toronto, Properly is currently operating only in Calgary.
The company’s data driven model is focused on buying only detached or semi-detached homes in the city, built after 1960 and worth $250,000 to $550,000.
Properly claims to be the first to bring this model to Canada and has big plans for 2019.
Selling a home is one of the most important financial transactions in people’s lives, and one that can carry a commensurate amount of anxiety.
Properly’s sales pitch is that its process can save time and reduce stress.
Those who’ve used Properly pay a service fee between 6 and 11% on the transaction. It’s based on the condition of the house being purchased and repairs it needs to be sale ready.
What Properly does is buy the property directly from the seller for the determined price. This eliminates the hassle of Open Houses and showings that can be really disruptive and needless to add, stressful.
Instead of paying an agent a commission, clients pay Properly a service fee.
The Calgary Real Estate Board reports that detached home sales in the city for January 2019 were down 16 per cent from January 2018, and prices were off by four per cent in the same period.
Calgary is a market that Properly’s Ruparell knows well because he’s from the city.
Ruparell says his company is committed to giving customers a fair price through technology.
On homes in good shape Properly says it will refund back 75 per cent of the difference if it sells a property for more than it paid.
Ruparell won’t say how many transactions the company has completed since launching in June. However, in January, Properly purchased seven homes, representing about 1.5 per cent of the city’s total deals on detached houses.
For 2019, the company plans to buy about $50 million worth of homes in Calgary, which could add up to more than 100 houses.
After that the idea is to take their real estate revolution national. Ruparell says the concept can work “not only in Calgary, but in every other city across Canada.” -CINEWS