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The Hidden Dangers of Lease-to-Own Contracts (What Every Homebuyer Should Know)

October 21, 2024
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by aowd
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In today’s competitive housing market, many aspiring homeowners are turning to alternative financing options to make their dreams of property ownership a reality. One such option that has gained popularity is the lease-to-own contract. While these agreements may seem attractive at first glance, they often come with hidden pitfalls that can lead to severe financial distress and even eviction. This blog post aims to shed light on the dangers of lease-to-own contracts and provide valuable information for potential homebuyers.

The Allure and Deception of Lease-to-Own Agreements

Lease-to-own contracts, also known as rent-to-own or contracts for deed, appear to offer a pathway to homeownership for those who may not qualify for traditional mortgages. These agreements typically allow potential buyers to rent a property for a specified period, with the option to purchase the home at the end of the lease term. However, as recent events have shown, these contracts can be fraught with risks and may be used as tools for predatory lending practices.

A Cautionary Tale: The Andino Reynal – Ribbon Home Lawsuit

A recent lawsuit filed by Attorney Andino Reynal of The Reynal Law Firm on behalf of Texas homeowner Genae Hull against Ribbon Home SPV I, LLC, Ribbon Home SPV II, LLC, and EasyKnock, Inc. highlights the potential dangers of these agreements. Hull’s experience serves as a stark warning to other potential homebuyers.

According to the lawsuit, Hull purchased a home through Ribbon Home in 2021 and faithfully made payments for nearly three years. During this time, she witnessed a significant increase in the property’s value. However, in a shocking turn of events, Ribbon abruptly shut down the payment portal and moved to evict her.

This case exemplifies the bait-and-switch tactics that some companies allegedly employ in lease-to-own transactions. As Federico Andino Reynal, the attorney representing Hull, states, “Lease-to-own contracts often appear attractive at first glance, but many come with hidden pitfalls that can lead to severe financial distress.”

The Resurgence of Predatory Lending Practices

The Hull case is not an isolated incident. There has been a resurgence of predatory lending practices in Texas and across the United States. High-tech national companies are repackaging lease-to-own contracts, posing significant risks for homeowners. This trend underscores the importance of vigilance and thorough research before entering into any alternative financing agreement.

Lack of Consumer Protections

One of the primary concerns with lease-to-own contracts is the lack of substantial consumer protections and regulatory oversight. Unlike traditional mortgages, which are subject to strict regulations and consumer protection laws, these alternative financing arrangements often operate in a regulatory grey area.

The Pew Charitable Trusts highlights that these agreements are generally riskier and more costly than traditional mortgages. Without proper oversight, unscrupulous companies can take advantage of unsuspecting buyers, leading to situations where homeowners face eviction despite diligently making payments.

The Role of Regulatory Bodies

In response to these alarming developments, various regulatory bodies are taking action:

  1. The Consumer Financial Protection Bureau (CFPB) is actively combating predatory lending by issuing warnings and filing lawsuits against deceptive practices, including lease-to-own schemes.
  2. State legislators across the country are considering tightening regulations to prevent predatory practices from proliferating. Proposed measures include enhanced transparency requirements, stricter enforcement of existing laws, and increased penalties for companies found guilty of deceptive practices.
  3. The Texas Attorney General’s office has launched an investigation into these practices, aiming to protect consumers and hold companies accountable.

Protecting Yourself: What Potential Homebuyers Should Know

If you’re considering a lease-to-own agreement, here are some crucial steps to protect yourself:

  1. Thoroughly research the company: Check their reputation with the Better Business Bureau and look for any complaints or lawsuits filed against them.
  2. Understand the terms: Carefully read and understand all terms of the agreement. If something is unclear, seek legal advice before signing.
  3. Know your rights: Familiarize yourself with your state’s laws regarding lease-to-own agreements and consumer protections.
  4. Consider alternatives: Explore all available options, including traditional mortgages or government-assisted homebuying programs, before committing to a lease-to-own agreement.
  5. Be wary of high-pressure tactics: If a company is pushing you to sign quickly or discouraging you from seeking legal advice, consider it a red flag.

The Importance of Legal Representation

In cases where homeowners find themselves in disputes with lease-to-own companies, legal representation can be crucial. Attorneys specializing in consumer protection and real estate law can help navigate the complex legal landscape and protect homeowners’ rights.

Conclusion: Proceed with Caution

While the dream of homeownership is powerful, it’s essential not to let that dream cloud your judgment. Lease-to-own contracts may seem like an attractive shortcut to property ownership, but they can often lead to financial distress and legal complications.

As the housing market continues to evolve, it’s crucial for potential homebuyers to stay informed, vigilant, and cautious. By understanding the risks associated with lease-to-own agreements and taking steps to protect themselves, aspiring homeowners can make more informed decisions and avoid falling victim to predatory practices.

Remember, when it comes to such significant financial decisions, it’s always better to err on the side of caution. Take the time to research, understand, and seek professional advice before entering into any alternative financing agreement. Your future financial stability and the security of your home may depend on it.

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5 Things Buyers Hate to See

July 8, 2019
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by aowd
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5 Things Buyers Hate to See

When you show your home to prospective buyers, there is probably a long list of things you’re hoping they’ll notice. For example, you’ll want them to see the beautiful chandelier in the foyer or the spacious backyard and large deck, or the kitchen with the island big enough for a whole family to sit down for breakfast.

But what about those things you’re hoping buyers will not notice?

Every home has some features that are less than enticing to the typical buyer. You may not be able to do much about a small kitchen or a home backing onto a noisy main street.

However, there are several things buyers don’t want to see that you can change. Here are five of the most common:

  • Clutter. Closets stuffed full of clothes or rooms crammed with too much furniture are distractions. Clutter of any kind makes buyers feel uneasy – and gets in the way of showcasing the wonderful features of your home.
  • Maintenance issues. Buyers definitely don’t want to see a lot of things that need repairs or replacement, such as dripping faucets, faded or chipped walls, or overgrown lawns and shrubbery.
  • Smells. Of course, you can’t see smells. But buyers will notice the lingering aroma of exotic cooking, cigarette smoke, and pets. These smells may even limit the amount of time they want to spend exploring the home.
  • Personal items. Buyers will understand that a family is living in the home they’re viewing. However, constant reminders – in the form of vacation pictures, trophies, or scattered children’s toys – can make a buyer feel like an intruder.
  • You. It’s nothing personal, but buyers prefer to view your home without you in it.

Fortunately, all these things can be easily dealt with before you show your home.

Looking for more ideas on selling your home quickly and for the best price? Call us today – Guelph Real Estate Agents – Ann O’Garr and Wolfgang Dobrowolski.

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5 Tips to Help Sell Your House

March 29, 2018
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by aowd
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If the time has come for you to sell your home, we have a few helpful strategies that should make this process run as smoothly as possible. A seller’s worst nightmare is to have their home listed forever and never make a deal. As your local Guelph real estate agent, I can provide 5 tips to help you quickly sell your home and prevent that fear from becoming a reality.

1. Curb Appeal

Whoever said, “Don’t judge a book by its cover” was clearly not talking about a house. A home’s curb appeal could be the first and only impression it makes on a potential homebuyer. Therefore, it is important that you make the home look as presentable as possible. This could be done by installing a new roof, fixing any chipped paint or removing dead flowers from the yard. The more appealing your home looks the more likely a buyer will stop and look around.

2. Stage Appropriately

When your house is being viewed, stage it appropriately so the buyers can envision themselves living there. In many cases, this may mean depersonalising your home to some extent. Most homebuyers do not want to see your family photos or personalised items in their potential home; remove all unnecessary items so they can picture their family there instead. In addition, make sure all the furniture is in an appropriate place, and that the whole house has been deep cleaned.  Nothing will turn away a buyer faster than having an unorganised, dirty home.

3. Price Right

The real estate in Guelph is competitive so be reasonable with your listing price. Homebuyers are aware of the current market trends so don’t try and oversell. If you do not price your home appropriately from the start, home buyers could avoid viewing your home and you could risk the chance of making a sale. As experienced Guelph real estate agents, we are experts on the market and at pricing homes. We can help you get the most money for your home, in the shortest amount of time.

4. Online Listings

When selling, make sure your home is listed on all the major online sites. The more popular the website, the more viewings your home will get. Make sure all your photos online are of good quality because presentation is everything. One blurry photo could deter a buyer from wanting to see more. It will also be in your best interest to go above and beyond by adding helpful information about the neighborhood. This way buyers cannot only see what it would be like to live in your home, but to live in the community as well. We can help you make sure your home is marketed properly to the right audience!

5. Be Flexible

It is important to be flexible with your schedule. If you have someone who is interested in your home but can only view it at a certain time, be as readily available as possible. Having to constantly reschedule will discourage a buyer from wanting to make the effort of seeing your home and might look elsewhere. We understand that it can be difficult to always keep your home clean or have it available for potential buyers to view, but this will help make the process moving along much faster!

Working with a real estate agent in Guelph can provide more insightful tips on selling your home. So don’t wait, reach out to Ann O’Garr today at 519-831-7447 or aogarr@remax.net or Wolfgang Dobrowolski at 519-831-7447 or wolfgangd@remax.net.

 

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Guelph Realtor – Reasons Your Home is Not Selling

February 14, 2018
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by aowd
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Whether you need to relocate for work or you are purchasing a home closer to family or an excellent school, you have listed your home with the intention of selling it. Everyone hopes to sell their home in as little time as possible, and when that doesn’t happen, it can leave you wondering what is going wrong.

While problems selling your home are definitely unwanted, there may still be some good news! In many cases, there are steps you can take to remedy whatever problem is preventing your home from selling..

The most common reason for homes not to sell as quickly as they should is an issue with the price. There is a great deal that goes into pricing a home accurately and that is for good reason. If you start out too high, even in a seller’s market, your home can sit on the market without any traffic. As Guelph realtors, we understand many people want to price their homes higher in the beginning as a way to “leave room” for negotiation. Our experience in the industry has shown us that this method of pricing a home just leads to longer time on the market and possibly even a lower selling price.

By pricing your home correctly from the beginning, you are more likely to sell your home at a price that works well for you. If your home is currently priced too high, that could factor into why your home has not yet been sold.

The condition of your home, especially in relation to price, will also have an important role in how quickly your home sells. If your home is priced according to the homes being sold in your local area, but it hasn’t been looked after in the way the other homes have, it isn’t going to sell.

In situations where a seller’s home could use some “TLC” we recommend taking care of the more inexpensive jobs and adjusting your price to accommodate for anything that has not been taken care of. This will give buyers more of an incentive to purchase a home that they know will involve additional time and money on their part.

How your home is being marketed to buyers is another thing you should take a look at if your home isn’t selling fast enough. Your Guelph realtor should be helping you stage, photograph and market your home to appeal to the largest number of buyers.

While we may not be able to help you with issues involving your title or other things of that nature, we can definitely help you sell your home if price, condition or marketing are your issues.

If your home hasn’t sold yet, it’s time for a change. For help selling your home, give us a call today!

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Guelph Real Estate – Real Estate Terms

January 11, 2018
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by aowd
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When it comes to real estate, whether you are buying or selling, there are a lot of terms that may be associated with each transaction.

Throughout our experience working in the real estate industry, we have come across each of these terms countless times. This has helped us obtain a firm grasp of the meaning of each aspect of the process and allows us to better assist our clients as they find the perfect home or buyer in the Ontario region.

We understand that, while it is crucial to work with an experienced real estate professional, many of our clients also feel more confident when they understand the process themselves.

There are many common, and not so common, real estate terms whose meanings may not be as familiar as they should be. Below, you will find a list of a few of these words, along with a brief definition, to help you better understand each term.

Amendment: An amendment is a document that states a change that has been made to a contract. This may include a correction, clarification, addition or deletion of a certain section or term of the contract. The contract must have been previously agreed to for it to need an amendment. If the contract has not yet been agreed to, changes may be made to it by either party and these changes, once agreed upon, will just be part of the contract itself.

Appraisal: An appraisal is a formal, unbiased estimation of property’s value. It is most often issued in writing and must be evidenced by criteria relating to relevant property data.

Chattels: Chattels are all the removable possessions that are not secured to or considered part of the real property. These possessions may include furniture, décor, and appliances. A common term that is often associated with this lesser known term is personal property.

Closing: The process of closing on the purchase or sale of a property refers to the finalizing of the real estate transaction. During this process, all documentation is signed by all required parties, funds are properly distributed and keys are exchanged.

Surveying: Surveying refers to the process of accurately measuring the boundaries and elevations of a certain piece of land or structure. A survey is taken during the home buying process to ensure that all parties are aware of the exact measurements of the property before the sale is finalized.

Valuation: The process of valuation occurs when the value of a certain real estate property is determined. Unlike an appraisal, the process of valuation can be done through many different means, and is not necessarily a formal declaration of value, although it may still be helpful for things like pricing your home when you list it for sale.

These terms represent only a fraction of the information that is involved with each real estate transaction, which is why we always recommend working with a real estate professional who is experienced and educated on each and every aspect of the process.

As Guelph real estate professionals, we are always happy to help people on the move! Give us a call today for more information or to get the process of buying or selling your home started now!

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Guelph Real Estate Agents – Things to Consider Before Selling Your Home

August 7, 2017
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by aowd
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Whether you are relocating for work, moving to an area with more options for your children’s education, or downsizing as you enter retirement, there will come a time when you are ready to sell your home.

As trusted Guelph real estate agents, we want to help you understand the importance of preparing both yourself and your home before you put your house up for sale.

The most important thing to consider when you make the decision to sell your home is who you will be working with throughout the selling process. Aside from deciding to sell your home, deciding on who you want to work with is the most important choice you will make because it can affect everything else!

The right Guelph real estate agent will help you price your home, market your home and sell your home.

Whether you choose to work with an expert or try to make a go of selling your home on your own, there are many factors that will need to be taken into consideration before you can accurately price your home.

You and your agent or realtor will need to conduct research on the local housing market to see what the homes in your area with similar characteristics to your home are selling for. This will not only help you set a realistic asking price right from the start but will also give you an idea as to how long most homes in your area and price range are taking to sell.

The process of selling will vary from home to home, but this relevant market data should give you a great starting point for your own process.

It is important to remember not to overprice your home when you first list it on the market, as this can drag out the process which could have a large impact if you have time limitations due to work or other scheduling obligations.

Once your house is “market ready” and you and your agent or realtor have conducted the necessary research and accurately priced your home, it will be time to list your house!

From the moment your agent lists your home for sale, you will be responsible for keeping your house clean at all times. If you and your agent have done a good job of pricing your home, you should be getting regular calls from other agents with potential buyers. You will often be given very short notice when buyers want to view your home, so you should make sure your home is ready to be shown at any time.

As experienced Guelph real estate agent, we can help you prep, price and sell your home with ease! We have been helping people on the move for years and we can’t wait to do the same for you!

Give us a call today for more information!

 

 

 

 

Sources: http://bit.ly/2udrdlRhttp://bit.ly/1EjUFruhttp://bit.ly/1mTjiWS

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Open House Prep Tips

July 21, 2017
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by aowd
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In our previous post, we discussed the logistics of hosting an open house – choosing the right date, advertising properly, etc. Once your open house has been properly planned and scheduled, it is time to tackle the project of preparing your home.

The best place to start is where potential buyers will start. The first thing they will see when they come to your open house is the outside. This is where their first impression will be made, so it is important to make that a good one.

There are many quick and easy updates that can be made to the front of your house to boost this first impression or curb appeal as it is often called, but these are not always necessary. You do, however, need to make sure that your lawn is properly maintained, all debris is cleaned up, and your garbage cans and recycling bins are put away.

The next place visitors of your open house will see is your entry way. Remove all unnecessary items, including jackets, coats, shoes and dog leashes to make this space as tidy and inviting as possible. If you have a small closet in this area, don’t over pack it with these items. Instead, put them away in larger closets, in storage bins if possible, to make this space appear larger.

This tip can work throughout your entire house! Clear out as much clutter as possible to make your home feel as open and welcoming as possible. Potential buyers who visit your open house will appreciate the chance to get a better idea of how their own belongings will fit into this new space.

As guests begin to walk through your home, they will be considering more than just the way your home looks. Smells are also something that can impact the way an open house visitor feels about your home. Clean your home and neutralize any odors with scented sprays. Baking sweets and lighting scented candles are also great ways to improve the scent of your home to make sure potential buyers leave with a lasting, positive impression.

The best tip for when you are getting your home ready for an open house is to try to look at your home from the perspective of a potential buyer. Is the house clean enough, lit well enough, and deodorized?

For a more detailed list of ways you can prepare your home for an open house, contact us today! We are more than happy to help you hold a successful open house, from planning and preparing to hosting.

We have been helping people on the move for years and can’t wait to help you too!

 

 Source: http://blog.comfree.com/2015/02/16/10-tips-host-best-open-house-ever/#.WTAMxhPyuL0

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Guelph Real Estate – Open House Tips

June 14, 2017
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by aowd
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The strategic marketing concept of holding open houses has been under scrutiny for quite some time. There are people who will swear by open houses and others who don’t believe open houses truly help when it comes to selling their Guelph real estate.

It is true that most people looking to purchase their home will start their search online and this is a great way to start bringing attention to your property. With such an emphasis on online marketing it is hard to see the value in an open house, but trust us, it’s there!

Have you ever made a purchase online before? What type of item did you purchase?

It was most likely something you have purchased in the past or had already seen in a store. If most people are worried to purchase clothing online for fear of receiving the wrong size, they aren’t going to purchase a home strictly off what they read about it on a website.

People want to experience the house. They want to check out the neighborhood as they drive up and picture their possessions as they walk through the house. An open house is the perfect way to let as many people as possible have these experiences and fall in love with your home.

With that being said, if you and your agent or realtor do decide to hold an open house, it is important to get it right! The following tips should give you some great ideas when it comes to holding your own open house:

 

Choose the Right Day and Time

One of the most important aspects of holding your open house is selecting the right day and time. Open houses are now typically held for only a couple of hours, say from 2:00pm – 4:00pm. This strategy of limiting the hours will bring more people to your house in a shorter amount of time, giving them all the impression that there is heightened competition for your home.

Choosing the right day is also an important factor when planning your open house. You don’t have to stick to the weekends if the buyers you want to target would be more likely to come by on say a Thursday. Take some time to think about the potential buyers you want to draw in and consider their usual movements, then work your open house plans to fit into their routines.

 

Advertise

It is very important to advertise your open house to draw as much attention and traffic to your home as possible. This can be accomplished with flyers and signs and via social media and word of mouth. Your agent or realtor should also have some marketing tools they can provide to ensure your open house is properly advertised.

 

Make it Friendly and Enjoyable

An open house doesn’t have to be a sort of informal home inspection. Make your open house more of a social event by inviting your neighbours. The potential buyers that come to your open house with this welcoming and friendly atmosphere from your neighbourhood will have a much better impression of your home.

 

Hold Two Open Houses – One for Agents and One for the Public

Holding two open houses is a great way to draw more potential buyers to your Guelph real estate. Hold one exclusive open house that is only for other agents and realtors. This open house won’t be advertised to the public, but your agent will be able to advertise it to other agents and realtors that represent potential buyers. It is important to get them excited about your property so they will take your information back to their clients.

The second open house will be the open house you hold for the public and can be accomplished using the tips we have given above.

If you are considering an open house, it is important to remember that online marketing and open houses don’t have to be either or. You can absolutely post your property online, with an agent or realtor, and hold an open house. These two marketing concepts go hand in hand and both are designed to increase your exposure to potential buyers.

Do you want to hold an open house? Give us a call today and we will be happy to help!

 

Source: http://www.moneysense.ca/spend/real-estate/selling/tips-for-better-open-houses/

 

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Top Real Estate Myths

May 4, 2017
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by aowd
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As with every industry, there are many common myths that are heard throughout the real estate industry. We are going to go through a few of those myths and explain why they are not facts as we help you through the process of selling your home.

 

Myth Number 1: Selling your home FSBO will save you a ton of money.

 Many people believe that by selling their house “for sale by owner” they will be saving a ton of money by avoiding any fees associated with an agent, realtor or broker. There are many factors that these sellers are not considering, which could end up costing them far more in the long run.

Yes, real estate professionals charge a fee or commission when they help you sell your home, but with that fee comes the expertise of that professional. They use their knowledge and experience of the industry to make sure you are listing your home for the right price and marketing your home the right way. They will also handle negotiations on your behalf and make sure all transactions and paperwork are handled legally and accurately. In doing so, these professionals not only save you money but also save you time!

When it comes to one of the largest financial transactions you will make in your lifetime, don’t leave it up to chance. Hire a real estate professional who has the proper qualifications and can be trusted to handle the entire process ethically and in your best interest.

 

Myth Number 2: Agents, Realtors or Brokers will say just about anything to make a sale.

 As we mentioned before, it is important to choose a real estate professional to help you sell your home who has your best interests in mind. Agents, Realtors, and Brokers are often portrayed as individuals who will say and do nearly anything to make a sale.

This is not always the case, especially not with us! We hold ourselves to an even higher standard than the already strict code of ethics and regulations we are bound to as professionals in the industry.  We strive to build lasting relationships with your clients and that would not be possible if we did not conduct ourselves with integrity.

Of course, not everyone that works in the real estate industry operates the same way we do, so it is important for you to do your research and, again, make sure you trust the agent, realtor or broker before you hire them!

 

Myth Number 3: Every Agent, Realtor, or Broker is the same.

 As we have already touched on, this is not the case. Unfortunately, this way of thinking can lead both buyers and sellers to choose the wrong real estate professional for their situation.

Every agent, realtor, and broker have a different area of expertise, a different level of skill and a different personality. All of these factors should be taken into consideration when you are looking through your list of potential candidates. Just because someone has a real estate license, doesn’t mean they are necessarily qualified to provide what you are looking for.

 

Myth Number 4: You should “leave room” for negotiating when you decide on an asking price for your home.

 Making sure your home is priced correctly is one of the most important requirements if you want to sell your home quickly and for as much as possible.

Many sellers believe that if they price their home well above what they expect to sell it for, they are leaving room for buyers to feel like they are negotiating the price down and still come out where they want.

This tactic is not advised because it will typically result in your home staying on the market for a longer period of time, during which you will most likely begin dropping the price anyway. Most buyers will be conducting their research online or working with a professional and will move right past a home that is significantly overpriced.

 

Myth Number 5: You do not need to report the sale of your home.

 Along with the recent mortgage regulation changes, the Federal Finance Minister has also instituted tax changes that require all property sales to be reported by sellers to the Canada Revenue Agency.

These practices have already gone into effect, requiring every seller to file a tax form in April that includes general information about the sale of the home. This may include acquisition and sale dates and a description of the property, among other information.

While these five real estate myths may be commonly thought of as facts, we hope you now have a better understanding of how the real estate industry works and feel more confident in choosing us to help you sell your Guelph real estate!

Give us a call today at (519) 831-7477 so we can help you on the move!

 

 

Source: http://www.rochesterrealestateblog.com/top-10-real-estate-myths-debunked/

Source: http://www.moneysense.ca/spend/real-estate/selling/5-home-selling-myths-debunked/

Source: http://www.hgtv.ca/real-estate/blog/8-real-estate-myths-28874/

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Happy Homeowners – Meaghan and Kit

April 26, 2017
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by aowd
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Meet happy first-time homeowners, Meaghan and Kit!

We are so honored to have been included in the process of finding their dream home!

guelph real estate - first time home owners

Whether you are looking to buy or sell your Guelph real estate, give us a call today. We can’t wait to help you get on the move!

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