We all know that the moment we start driving a new car, its value starts dropping, just like how gadgets lose their worth as technology advances rapidly. However, homes usually don’t lose value as these other purchases do. In fact, the estimated price of a property you see in a house value calculator in Canada today could double or even triple in ten years, helping you earn a high resale profit. Of course, whether your new home appreciates or not depends on several factors you need to look at before you buy.
Let’s explore in-depth how the home you invest in today can bring you a massive return when you decide to sell.
A House’s Resale Potential Matters as Much as Your Current Priorities
When buying a house, it is easy to get caught up in what you want right now. You may want an extra bedroom, a modern kitchen, or a beautifully landscaped yard and give these factors your full attention. And yes, your current lifestyle and choices matter.
However, to make a wise, long-term home-buying decision, you also need to think ahead. After all, a house isn’t just where you will live currently; it is also an investment in your future. And like any investment, you should consider what the house might be worth in the future. When you sell your home 10 or 30 years later, you will want to be in a position where the property brings you a solid return or, at the very least, doesn’t leave you at a loss.
That’s why you should balance the long-term value with your current priorities when buying a house. Homes with good resale potential tend to attract more buyers and often sell faster, even in a slow market.
Factors to Keep in Mind When House Hunting to Ensure a Solid Resale Value
1. Check Both the Current Value and the Past Sale Prices
Before you fall in love with a house, take a look at the current value of the house and how that price compares to history. The seller’s asking price can give you an idea of the home's current worth. But in case you want to double-check the seller’s claim, use a free home value estimator in Canada. You can also ask your real estate agent to help you find the home’s worth based on recent sales of similar homes.
Next, compare this price to the past sale prices of the property. Your real estate agent can pull up past sale prices through MLS or local property records. Tracking price changes of the house over time can give you a decent idea of the home’s potential for appreciation.
2. Choose a Location That Will Always Be in Demand
Homes in desirable locations tend to appreciate faster and are easier to sell, even during a market downturn. But what exactly makes a “good location”? Here are some things to look for:
- Proximity to public transportation (subways, buses, GO stations)
- Good schools and top-rated school districts
- Low crime rates and a sense of community
- Easy access to shops, grocery stores, and other amenities
- Parks, trails, and green spaces nearby
- Future growth potential, such as new infrastructure, transit projects, or commercial developments
3. Pay Attention to the Size and Layout of the Home
Buyers tend to compare apples to apples to see which home offers the best deal for money. If your new home’s square footage is smaller than that of other similar types in the neighbourhood, it may struggle to compete during resale. Even if the home checks all the boxes, its smaller size might lead to a lower resale value.
Source - MPAC (the Municipal Property Assessment Corporation) Data
Buyers also factor in the house layout when deciding how much to offer. Usually, buyers prefer open floor plans, well-separated bedrooms and living rooms, and logical room placement. On the other hand, choppy, awkward, or outdated floor plans can turn off buyers, even if the home has more square footage.
4. Don’t Ignore the Home’s Condition
Imagine buying a home, only to discover a few days later that you have inherited a string of expensive repairs. In this case, you will need to handle these repairs soon after purchase or at least when you resell, or else your house won’t attract serious interest. Why? That’s because no one wants to inherit costly repairs, including the future buyer of your home.
To avoid such problems altogether, evaluate the home’s condition thoroughly before signing the deal through a professional inspection. The home inspector will spot any existing or future issues to help you make an informed decision.
5. Think About Future Expansion and Zoning
You may not need extra space today, but in the future, that bonus basement or room over the garage could be a key selling point. After all, buyers love homes that offer options for future growth or extra income, and they are often willing to pay more for it. So, look for a home with potential for expansion, such as adding a second floor, finishing the basement, or a legal suite.
6. Consider the Type of Home and Market Demand
Some home types in Ontario hold their value better than others, depending on the area. For instance, in Niagara Falls, detached homes saw an impressive price appreciation of 20.67% from January 2020 to January 2025. But, during that same period, condo apartment prices dropped, making them a riskier investment in Niagara. However, flip the script to Etobicoke, and condos there saw an 8.8% increase in value from January 2020 to January 2025.
So, ask your Realtor about which home types are performing well in your preferred city. If the type of home you are buying isn’t in demand now or hasn’t appreciated much in recent years, it could affect your resale value in future.
Below are the price appreciation trends for different home types in major Ontario cities to help you make an informed decision -
Source - Ontario Housing Market Trends (The Canadian Home)
7. Know the State of the Housing Market
Finally, think about the overall housing market at the time of your purchase. In a buyer’s market, you (the homebuyer) have more negotiating power and a better chance of buying low. When you buy in this market and eventually sell in a seller’s market, you can make a healthy profit. On the other hand, if you are buying high and the market cools later, you may have to wait longer to make a gain or risk selling at a loss.
What You Do Now Can Pay Off Big When You Sell Your Home
Once you move into your new house, there are several things you can do to increase the property’s resale value. Regular upkeep, timely repairs, modern updates, and energy-efficient upgrades can help your home’s value grow over time. That said, there are some things you simply can’t change after you buy the house. For instance, the location, the quality of the school district, or the demand for your home type.
That’s exactly why, when picking your dream home, take time to analyse the resale value factors that you won’t be able to change later. Then, after you settle on the right house, take great care of it and make strategic upgrades to increase its future market value.