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Two new real estate players enter market

Central Alberta’s real estate market is about to become more crowded — and varied.

Central Alberta’s real estate market is about to become more crowded — and varied.

PropertyGuys.com and 2% Realty have both announced plans to establish outlets in Red Deer.

Ken LeBlanc, president and CEO of Moncton, N.B.-based PropertyGuys.com, said Donald and Elaine Lysons will open a franchise in Red Deer after completing their training next month.

And Roy Almog, owner of 2% Realty, hopes to have an office operating here by April or May.

PropertyGuys.com provides support to homeowners seeking to sell their own property.

It charges a flat fee that ranges from about $400 to $1,500, and provides a sales agreement and negotiating tools, takes photos, furnishes signs, arranges for local print ads and promotes the property on its website, among other services.

PropertyGuys.com representatives are not licensed Realtors, and do not have access to the Multiple Listing Service.

Founded in 1998, PropertyGuys.com started selling franchises five years ago and now has more than 120 outlets, including in Edmonton, Calgary, Lethbridge and Grande Prairie.

LeBlanc said this national presence distinguishes his company from other for-sale-by-owner operations.

As its name suggests, 2% Realty uses a discounted commission system.

Vendor clients pay an amount equal to two per cent of the property’s selling price, and in return receive MLS exposure and help with showing properties, photos, signs, paperwork and every other aspect of the marketing and sale process.

“It’s not a do-it-yourself,” said Almog. “We’re still very much involved every step of the way.”

The company also has an incentive program for buyers, repaying them one per cent of the purchase price when the deal closes.

After starting 2% Realty in Edmonton three years ago, Almog has ranked among the top five per cent of that city’s Realtors in each of the last two years.

He expanded into Calgary last fall, and sees Red Deer as a logical next step.

He hopes to enter the Fort McMurray market by year end.

“Once I solidify a presence in Alberta, it would be expanding to other provinces via a franchise model.”

Almog expects to start his Red Deer office with two Realtors and expand it as demand requires.

“Red Deer’s still a lively market. I think there’s a lot of opportunities there.”

LeBlanc believes PropertyGuys.com has been successful because many homeowners want to avoid paying high commissions when selling.

That said, some people want the help of a Realtor and others prefer to do everything themselves — even shunning the relatively low fees charged by companies like PropertyGuys.com.

Almog said commissions often vary from one real estate firm to the next, but 2% Realty is among the lowest for full-service brokerages.

It’s able to do this by keeping costs low (agents work out of their homes) and following a strategy similar to that used by Costco and Wal-Mart.

“We base our business model more on volume.”

hrichards@www.reddeeradvocate.com