diff --git a/lib/elements/dom-if.html b/lib/elements/dom-if.html
index 842e5a6593..be98f7a2ab 100644
--- a/lib/elements/dom-if.html
+++ b/lib/elements/dom-if.html
@@ -204,7 +204,7 @@
         }
         if (!this.__instance) {
           this.__instance = new this.__ctor();
-          parentNode.insertBefore(this.__instance.root, this);
+          this.__instance.insertBefore(parentNode, this);
         } else {
           this.__syncHostProperties();
           let c$ = this.__instance.children;
diff --git a/lib/elements/dom-repeat.html b/lib/elements/dom-repeat.html
index 0b7ee3f5f3..fffc5ecf06 100644
--- a/lib/elements/dom-repeat.html
+++ b/lib/elements/dom-repeat.html
@@ -580,7 +580,7 @@
       }
       let beforeRow = this.__instances[instIdx + 1];
       let beforeNode = beforeRow ? beforeRow.children[0] : this;
-      this.parentNode.insertBefore(inst.root, beforeNode);
+      inst.insertBefore(this.parentNode, this);
       this.__instances[instIdx] = inst;
       return inst;
     }
diff --git a/lib/utils/templatize.html b/lib/utils/templatize.html
index 051aca976c..75347b783d 100644
--- a/lib/utils/templatize.html
+++ b/lib/utils/templatize.html
@@ -54,12 +54,6 @@
         if (this.__templatizeOwner.__hideTemplateChildren__) {
           this._showHideChildren(true);
         }
-        // Flush props only when props are passed if instance props exist
-        // or when there isn't instance props.
-        let options = this.__templatizeOptions;
-        if ((props && options.instanceProps) || !options.instanceProps) {
-          this._flushProperties();
-        }
       }
       /**
        * @private
@@ -77,6 +71,16 @@
           this._setPendingProperty(hprop, this.__dataHost['_host_' + hprop]);
         }
       }
+      /**
+        Inserts the templatized dom into the given `parentNode` before
+        `refNode`.
+        @param {Node} parentNode node into which to insert dom
+        @param {Node} refNode node before which to insert dom
+      */
+      insertBefore(parentNode, refNode) {
+        parentNode.insertBefore(this.root, refNode);
+        this._flushProperties();
+      }
       /**
        * Forwards a host property to this instance.  This method should be
        * called on instances from the `options.forwardHostProp` callback
diff --git a/test/smoke/ready-order.html b/test/smoke/ready-order.html
new file mode 100644
index 0000000000..3fc55bccfa
--- /dev/null
+++ b/test/smoke/ready-order.html
@@ -0,0 +1,72 @@
+ <!--
+@license
+Copyright (c) 2017 The Polymer Project Authors. All rights reserved.
+This code may only be used under the BSD style license found at http://polymer.github.io/LICENSE.txt
+The complete set of authors may be found at http://polymer.github.io/AUTHORS.txt
+The complete set of contributors may be found at http://polymer.github.io/CONTRIBUTORS.txt
+Code distributed by Google as part of the polymer project is also
+subject to an additional IP rights grant found at http://polymer.github.io/PATENTS.txt
+-->
+<!DOCTYPE html>
+<html>
+<head>
+  <script src="../../../webcomponentsjs/webcomponents-lite.js"></script>
+  <link rel="import" href="../../polymer.html">
+</head>
+<body>
+  <dom-module id="grandchild-element">
+  <script>
+      Polymer({
+        is: 'grandchild-element',
+        ready: function(){
+          console.log('grandchild-element ready');
+        }
+      });
+  </script>
+</dom-module>
+<dom-module id="child-element">
+  <template>
+    <grandchild-element></grandchild-element>
+    <h2>{{person}}</h2>
+  </template>
+  <script>
+      Polymer({
+        is: 'child-element',
+        properties: {
+          person: {
+            type: Object
+          }
+        },
+        ready: function(){
+          console.log('child-element ready');
+        }
+      });
+  </script>
+</dom-module>
+ <dom-module id="parent-element">
+  <template>
+     <template is="dom-repeat" items="[[childrenData]]">
+      <child-element person="[[item]]"></child-element>
+    </template>
+  </template>
+  <script>
+      Polymer({
+        is: 'parent-element',
+        properties: {
+          childrenData: {
+            type: Array,
+            value: function() { return ["Child name"]}
+          }
+        },
+        ready: function(){
+          console.log('parent-element ready');
+        }
+      });
+  </script>
+</dom-module>
+
+
+<parent-element></parent-element>
+
+</body>
+</html>
