At first, I wanted to make the title more radical (“What kind of real estate should not be bought”), but then I replaced it with what you see. Because, of course, there are different life situations, and we mostly follow the market rather than shape it.
Why do you think it’s not advisable to deal with some types of real estate? After all, we know that there’s a buyer for every product, and if something isn’t ideal, the worst that can happen is that you’ll have to sell it cheaper — but hey, you bought it cheaper too, right?
In general, that’s true, but sometimes not entirely.
In tough market times, like now, being forced to sell for less is only half the trouble. The other half is that some types of real estate are nearly impossible to sell at all. Sometimes, you don’t just need to drop the price by 10% (as with the market average), but slash it to downright embarrassing numbers just to get someone to take it.
So, what kind of real estate would I definitely not recommend my clients to buy, and instead — try their best to avoid, if there’s even the slightest alternative?
- Near a railway. It’s not about personal preferences: some of us may not mind it at all, but when you’re ready to sell the property, you’ll face the reality that many people simply won’t even consider your option.
- Near power lines. Many consider this type of proximity undesirable due to health concerns. It doesn’t matter that you don’t think so, or that such locations may fully meet all Canadian regulations—the number of potential buyers will be very limited.
- Next to highways or busy roads. Noise, exhaust fumes, dust — even if these things don’t bother you, keep in mind that many won’t like it, and it’ll be a shame to find that out only when it’s time to sell.
- Not far from an airport. Especially worth mentioning is Pearson Airport in Toronto, where takeoffs and landings happen every few minutes: the constant noise may seem romantic only for the first few days, and then it becomes a major irritation.
- Next to gas stations. Despite strict Canadian environmental laws and all the safety measures in place, many people are wary of such proximity due to potential health risks in the event of a leak.
- Near industrial zones and factories. Usually, industrial complexes are separated from residential neighborhoods by empty lots or parks, but overall it’s better to stay away from such surroundings.
- Homes with suspected structural issues (foundation, mold, etc.). Potentially expensive repairs and the need to bring the property up to modern standards can be a serious red flag for many buyers.
- Properties with a history of serious criminal incidents (e.g., violent deaths). By the way, it’s illegal to conceal such facts during a sale. You’ll end up trying to convince buyers that the house isn’t actually haunted.
- A home that’s significantly different from its neighbors. If your house is too big or too small, too old or too new, or has an unusual design — all of that can significantly narrow the pool of potential buyers.
- Properties near cemeteries. Though not all cultures view such proximity as emotionally uncomfortable, the number of buyers will definitely be lower than usual.
- Homes with awkward layouts or inconvenient lots. A narrow driveway, tricky access, or no parking at all — these are clear signs that the property isn’t worth buying, because it’ll be harder to sell later. In a falling market, this could become a critical issue.
- Real estate near social services, shelters, or subsidized housing. You might be able to buy such a property cheaper, but selling it later will be difficult — especially in a declining or stagnant market. When buyers have options, they tend to avoid such places out of concern for safety, which might be lower than what they’re used to.
Of course, situations vary, and you can’t predict everything in advance. But when buying, make sure you clearly understand why a particular property is priced below similar ones — and that you fully accept the risks you’ll take on when it comes time to sell. Hopefully, your realtor has experience with such deals and can help guide you to the right choice.
If you still have questions — please call 416 305 6525. I’m Serge Skyba, a licensed realtor in the province of Ontario, and I’ll be happy to offer advice, with no obligation on your part to buy or sell anything.
