Real Estate Talk:
Consider resale when buying

Examine issues that may affect resale when investing in a home

By Joseph Marovitch

Updated November 6, 2025

I once sold a duplex in Westmount to a buyer who stated they would only be leaving the house feet first. In other words, the buyer had no plans to move until death. Except that the buyer’s children had grandchildren, and the buyer decided to move to Vancouver, where the rest of the family was.

While owning the duplex, the buyer ripped out the recently installed beautiful kitchen to make it more of an office/kitchen. It was practical for the owner but not for anyone else. The buyer lost money when selling because the new buyer wanted the property and a nice kitchen.

One of my corporate clients had a five-year contract to work in Canada. The client was permitted to purchase a property while residing in Canada, with the prospect of living in the house and selling at a gain when it was time to leave. Immediately upon possession, the buyer painted the walls in the colours of the client’s country of origin. The colours were bright, a mix of reds, pinks, and yellows.

When searching for a home, in considering resale, price and location play a large factor.

Two months after taking possession of the house, the company informed the client that he was to be relocated to another international location. My client immediately called me, urgently asking me to sell the house we had just purchased. I suggested painting the house in a neutral colour. The client refused. During the time I was selling the property, the client had already been relocated and was paying the carrying cost on a property he no longer lived in.

Eventually, within six months of listing the property, a price was accepted that was lower than the purchase price, and a $ 3500 penalty had to be paid on cancelling the mortgage before expiry.

Some people purchase a property with the idea that they are never going to leave that property. We are all part of the circle of life. We have no choice. We are born into our parents’ home. We move to our first apartment. We marry and buy our first house or condo. We have children and need a larger home. The kids move out, and we need a smaller home. We get old and require assisted living, therefore, perhaps move to a retirement home. Other reasons to move are financial or work-related. People move, and consequently, resale must always be considered.

When searching for a home, in considering resale, price and location play a large factor. Is the price fair, and is the location good? Will I get my money back when I sell, and will the property be easy or difficult to sell? Will I get my money back when I sell, and will the property be easy or difficult to sell? This is the beginning of the process.

Now you have purchased the home, and you want to decorate. You like the colour pink, but does everyone else like pink when it is time to sell? You want more living space, so you decide to enlarge the house, which means sacrificing backyard space. When it is time to sell, does everyone else like a small backyard?

It is important to get the best price when buying, but it is also important to choose the best location possible within your budget. A property should be as easy as possible to sell when the time comes. If you get a great price for a property next to a highway or by train tracks, it may take a very long time to sell, and you could even lose money.

‘Buyers are attracted by spacious rooms, nice bathrooms and up-to-date well-designed kitchens.’

Neutral colours in a home, such as off-white, creams and other light colours, are better for resale. Buyers are attracted by spacious rooms, nice bathrooms and up-to-date, well-designed kitchens.

Some issues that affect resale negatively are:

• The price is too high
• The condition of the house is poor
• The appearance is poor
• Dated bathrooms
• Dated kitchen
• Small bedrooms
• Tandem or no garages
• Pools can be a non-starter for families with young children
• Location near a highway, train track or school

These are just a few issues that can generally negatively affect resale. It is better to realize these issues at the beginning than to find out at the end when selling.

General rule to follow: A property must be easy to sell.

• This is done by paying the market value or less and never investing more in the property than the market value in the area will bear. If the average price for a similar home in the area is $500,000 and you purchased for $425,000, the most the buyer should invest is $75,000 to $125,000. The buyer does not want to be the most expensive property in the neighbourhood because it will be difficult to sell.
  .
• Another way to ensure the property is easy to sell, other than proper pricing and targeted marketing, is to choose interior design that appeals to almost everyone. White or cream walls that need a new paint job will deter some but not all, since the new owner can repaint the property. However, multi-colored rooms or an abundance of pink, yellow, and purple can turn a buyer off at the get-go. Therefore, it is advisable to choose tasteful yet neutral colours, not to place a full office in a kitchen, and not to turn the garage into a bedroom.

The information in these articles is summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly.  As well, to view past articles, click here.

State of the market

The Bank of Canada lowered interest rates this week, likely to spur homebuyer sentiment; however, there is still buyer hesitation due to global market uncertainty.

Several factors are holding buyers back, such as a new nuclear arms race about to begin between the US, Russia, and a few other bad actors, continuing wars, and a widening gap between the rich, middle-income, and poor in the U.S. due to the government shutdown. Once again, all these factors affect our supply chain, interest rates and inflation. For those less concerned with these factors, there is an opportunity in the market to acquire property at a discount.

‘The good news is that the Canadian budget for 2025 was announced, and there are many tax incentives to increase home revenue and to make home ownership more affordable…’

The good news is that the Canadian budget for 2025 was announced, and there are many tax incentives to increase home revenue and to make home ownership more affordable, such as:

• Eliminating the GST for first-time homebuyers on new constructions
• Increasing the lifetime capital gains exemption from $$1.25 million
• Investing $13 billion in new home construction

For further discussion, leave a comment or call me directly.

Have a great week!

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