by Ephraim Vecina
Real estate technology firm Properly is offering homeowners who are looking to change properties the opportunity to buy first, and then sell their old homes later at a guaranteed price.
The program, a cooperative venture with the Canadian Imperial Bank of Commerce, will be initially available only in Toronto, although an Ottawa roll-out is also in the works.
“The pandemic has made an already stressful home buying and selling process even more volatile,” said Anshul Ruparell, chief executive and co-founder of Properly. “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.”
One of the main attractions is the capacity to list a home even after moving out, which is a valuable feature in the age of COVID-19.
“This eliminates the stress of living through staging, showings, and open houses – all inconveniences that have been exacerbated by the pandemic,” the company said in its announcement.
The offering will allow property owners to “substantially reduce risk,” Ruparell said. This will be largely achieved by Properly shouldering any mortgage costs associated with the previous property once a seller takes on a mortgage on their new home.
“We are comfortable covering this cost, which … wouldn’t be done in a traditional transaction,” Ruparell told The Financial Post.
With an average selling time of 17 days in Toronto, the company will not likely take undue hazard unto itself, Ruparell said.