Properly Review

**This post may contain affiliate links. I may be compensated if you use them.

It doesn’t matter if you’re a first-time home buyer or if you’ve owned multiple properties, the process of buying and selling a home can be stressful. You need to deal with changing real estate prices, getting a mortgage, and moving. That’s where Properly comes into play.

Properly is a Canadian fintech company that has been around since 2018 with operations in Ontario and Calgary. They believe that the real estate transaction needs to be improved, which is why they’ll give you a guaranteed purchase contract that will help you unlock equity in your home immediately. That means you can buy your next home before listing your current one on the market.

Guaranteeing the sale of your old home is nothing new in real estate, but with Properly, you’ll know exactly what you can afford. Read my Properly review now and find out how you can reduce the risks in the home buying and selling process.

Properly review

Properly Services

  • Guaranteed Backup Offer – Properly’s guaranteed backup offer unlocks your home’s equity, so that you have the money to buy the home you want without the need to sell – or even list – your current home first
  • Instant Estimate – A free home value report that includes an estimated home value range, recent comparable sales, and market trends
  • Properly Market – Classic listing and buyer representation services, with lower commissions (4.5%) than typical real estate agents charge
  • Listing search tool – In Toronto and Calgary, you can search every listing on the market, see prices of listed homes, and view recently sold comparables

Properly works like a traditional real estate brokerage, but the various services and data they have available gives you the confidence to buy the home you love when it hits the market.

To find out your purchasing power, Properly will first estimate the sale price of your home using machine learning technology. This estimate takes 2 business days, but they claim it’s 99% accurate based on 190,000+ sold homes. With the number available, Properly will give you a guaranteed backup offer of 93% of the estimated sale price.

Since you’ll know how much equity you have available, you can now search for a new home with a Properly Sales Representative (REALTOR®). Once you have that purchase contract in place, you can go to your lender of choice to get final approval for your new mortgage. That lender can also provide a bridge loan to cover the equity that’s available in your guaranteed backup offer from Properly.

As soon as you move into your new home, Properly will list your old home for sale. That’s right, you won’t have to deal with any showings or open houses. Your property is listed after you’ve moved out. Don’t worry about staging, marketing, or cleaning, Properly will take care of that, as well as mortgage payments and the bridge loan costs.

When your property sells and the closing date has come, Properly will transfer the funds from your former home’s sale (minus the standard 5% commission) to your lawyer. Your lawyer will then pay off the mortgage on your former home and the bridge loan. In the rare event that your property doesn’t sell within 90 days, Properly will buy your home at the guaranteed backup offer price (minus commission). Even if it gets to this point, Properly will still try to sell your home for the highest amount possible. If they end up selling your home at a higher price than what’s in the contract, you’ll get 90% of the difference.

How the math works

The idea of unlocking equity and getting a guaranteed offer may make your head spin, but when you look at the actual math, it’s quite simple.

How properly works

*Remember, the offer from Properly is based on 93% of the estimated value of your home.

This estimate is locked in for 7 days, but after that time, prices would need to be adjusted to factor in any changes. That said, it’s unlikely the price would alter drastically.

The guaranteed backup offer is optional. If you don’t need it and just want to list your home, Properly charges a commission of 4.5% in Ontario and 7% on the first $100,000 and 3% thereafter in Alberta. There’s no fee to use a Properly agent if you’re buying a home as the seller would pay the commission.

Why use Properly?

Some of you reading this Properly review are probably still wondering what the advantage of Properly is over a traditional brokerage. While both offer similar services, using Properly does reduce risk in the home buying and selling process.

When using a traditional brokerage, you might need two mortgages, a temporary place to stay, and a bridge loan. Since Properly covers the bridge loan and existing mortgage costs until you sell your home, you don’t need to worry about those extra fees. Plus, with Properly, you move out of your home when it’s convenient for you, so there’s no need to worry about different closing dates which may require you to find temporary accommodations.

As far as costs and fees are concerned, you don’t pay more or get less by working with them. Properly Realtors have a fiduciary duty to present all offers made to you. They’re not looking to buy your home at a low price so they can flip it later. It’s in their best interest to sell your home at the highest price possible.

That said, Properly does have a few downsides. If you’re selling, Properly is only available in Calgary, Toronto, and Ottawa. You need to use a Properly agent to qualify for the guaranteed offer since the commission earned from the seller when representing you as a buyer allows them to cover their costs. Properly also doesn’t give a guaranteed offer for all types of properties as they have specific criteria in mind.

It’s worth mentioning that Properly used to have a different business model that focused on buying homes. They pivoted and relaunched in 2020 using their current strategy, so some of the reviews and info you may find online are about what they used to offer.

Instant Estimate

Even if you’re on the fence about selling your home or you’re not sure when you plan to move, Properly still has a feature that may appeal to you. Their Instant Estimate uses data to predict the value of your home and is currently available in Toronto, Ottawa, and Calgary.

By getting your free Instant Estimate, you can view comparable homes and see what nearby homes with similar features to yours sold for. With this information readily available, you can keep up to date about the current market conditions.

The underlying technology is called an Automated Valuation Model (AVM) and factors in things such as the quality of nearby schools, comparable sales, neighbourhood density, transit accessibility, crime rates, and more. These additional data points are important because they can be high on the list of wants for buyers.

Final thoughts

My Properly review is positive. Disruption in Canadian real estate has been difficult, so who knows where things are headed. What Properly offers is more value for home sellers which will force the industry as a whole to work harder. This will only benefit consumers.

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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