You invest in your home steadily over time. You pay down your mortgage, build equity, and expect your home value to rise.
However, property values do not always go up. Poor-quality, or hyper personalized renovations, deferred maintenance, and upgrades that increase monthly carrying costs, can actually make a home less attractive to potential buyers and reduce your homes overall market value.
In this article, we explore what actually brings down property value in Canada. We surveyed 1,000 buyers in the across Quebec, to understand the features they actively try to avoid. We also spoke with several home appraisers to get their perspective on what most commonly brings down property value.
We’ll break down the top factors from both groups so you can see what really impacts property value, and what to avoid when renovating or maintaining your home.
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What brings down property value? (Buyer’s Perspective)
Let’s start by looking at what are the top things that bring down property value from a buyer’s perspective.
1. Deferred Or Neglected Maintenance
The number one thing that can cause a home to deprecate in value is deferred or neglected maintenance. A faulty sump-pump might not seem like a big deal in the middle of a roasting hot Quebec summer. But during springs freeze-thaw cycles, huge amounts of water will accumulate around your foundation walls, and without a functional sump-pump, you can risk water infiltration which can lead to damp, mold, flooding, and even (in extreme cases), a collapsed basement.
In reality, all homes require ongoing maintenance, and going through each part of your home to do a health check up is key. Below is a list of things that you should regularly check:
- Plumbing
- Drainage
- Heating systems
- Foundation
- Electrical
- Cracked driveways
- Missing shingles
- Curling shingles
- Damaged gutters
2. Non-Compliant Renovations That Hurt Property Value
Next on our list are home improvements that are not built to code. In this case, there are two key things to consider:
- Zoning bylaws – was the work legally permitted?
- The Quebec Construction Code – was it built to required safety standards?
For example, converting a duplex into a townhouse in Montreal or adding a basement bedroom may seem valuable. But if these changes don’t comply with zoning bylaws, buyers will see them as liabilities that they will need to pay for to either remove or fix.
The same applies to work that doesn’t meet the Quebec Construction Code, which sets standards for structure, electrical, plumbing, and ventilation. Poorly executed renovations that violate code can create safety risks, and affect insurance. If damage like a fire or flood is linked to non-compliant work, insurers may deny the claim. This can leave homeowner to cover the full cost alone. For buyers, this mix of legal risk, safety concerns, and potential uninsured losses can significantly reduce a property’s value.
3. Busy Pattern Or Outdated Flooring
In 2026, most buyers expect simple, continuous wood flooring throughout the home. It creates a clean, modern look and helps spaces feel larger.
If a property has multiple types of outdated flooring across different rooms, or bold, busy patterns that feel dated, buyers immediately start factoring in the cost to replace it. That includes demolition, materials, installation, and the disruption of living through the work.
You don’t necessarily need to upgrade the flooring in every room to sell. However, if you don’t, your home will likely be priced accordingly. For example, if a neighbouring property sold at a premium after updating and standardizing its flooring, you shouldn’t expect to achieve the same price without similar improvements.
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4. Bold And Bright Kitchen Cabinets
When you go to sell your home, you want to style it so that it appeals to as many buyers as possible. One way to unintentionally limit that appeal is to paint your kitchen cabinets bold colors like navy blue, green, orange, or red.
While these choices can make your home feel stylish and reflect your personal taste, buyer feedback consistently shows that strong, personalized colors often don’t resonate, in the sense that they simply don’t align with everyone’s preferences.
If you want to paint your cabinets, that’s perfectly fine for your own enjoyment. Just keep in mind that when it comes time to sell, neutral colors tend to perform best. Whites and soft, neutral tones are the safest choices, especially when paired with a matte, eggshell, or flat finish, as they create a clean, versatile look that appeals to the widest range of buyers.
5. Overly Personalized Renovations
Your home should absolutely reflect your style and the things you enjoy, but when it comes time to sell, too much personalization can work against you and, in some cases, even hurt your property value.
Just like bold kitchen cabinets, buyers often see overly personalized renovations and immediately think about the cost and effort to undo someone else’s taste. A classic example is themed rooms. These are rooms designed around something super specific, like a home theatre, a sports room, or a princess room. These might be fun and meaningful to you, but they tend to not resonate with buyers.
The same goes for unique features that can be expensive to run or maintain, such as a wall aquarium or a backyard pond with pumps and heating for specialty fish. Even something like a swimming pool can be a downside in certain markets, where buyers see added time, effort, and ongoing costs.
In the end, if you’re renovating with resale in mind, it’s best to stick with neutral designs that make it easy for buyers to picture their own lifestyle in the space.
6. Low Quality Workmanship
We’ve all seen the good, the bad, and the ugly when it comes to home renovations. More often than not, poor workmanship comes down to homeowners trying to save money with DIY projects or hiring unqualified contractors.
In Quebec, contractors must be licensed through the Régie du bâtiment du Québec (RBQ), and they need specific licenses for specific types of work. For example, just because someone is skilled in one trade—like electrical—doesn’t mean they’re qualified to take on plumbing or other specialized tasks.
One common issue buyers bring up is work done by handymen hired for small jobs—like mounting a TV—who then offer to take on additional tasks. Homeowners may end up asking them to fix things like outlets, minor plumbing issues, or other repairs outside their expertise. This can lead to improper fixes, hidden problems, and even safety hazards that aren’t immediately obvious.
While homeowners are free to make changes to their property, it’s important to recognize your limits. Some DIY work can absolutely save money and add value. But in other cases, it can lead to wasted materials, costly mistakes, and the need to hire a professional to undo and redo the work properly.
7. Cheap “Luxury” Finishes
A common mistake sellers make is trying to create a “luxury” look on a budget. For instance, homeowners often add things like cheap faucet fixtures, cabinet pulls that mimic gold but are clearly not, or even faux finishes like plastic exposed brick walls. At first glance, it might look good, but up close, buyer’s tell us that it has the opposite effect.
The bigger issue is the impression it creates. When buyers notice shortcuts like peel-and-stick countertops or low-quality backsplash solutions, they don’t just think, “I’ll have to redo this.” They start wondering what else was done cheaply or covered up.
If you’re going to make improvements, it’s worth doing them properly. And if the budget isn’t there, it’s often better to skip the quick fixes and price your home accordingly. Buyers appreciate honesty, and they want to know the quality of what they are buying.
8. Excessive Built-Ins
Built-in cabinets are custom-fitted storage units constructed directly into a room’s structure, typically extending from floor to ceiling or wall to wall. While they can be beautiful and functional, they are also incredibly expensive and, buyers tend not value them. This is because, like other highly personalized features in your home, unless they speak directly to a specific buyer’s taste, the buyer will only see a cabinet stuck to the wall, that will cost a lot of money to remove.
9. Wall To Wall Carpet
Once upon a time, carpet was considered a luxury feature in a home. Today, not so much.
Many buyers now see carpet as outdated, dingy, and even unsanitary, trapping pests, dust, and moisture deep below the surface. What most buyers prefer today is hardwood flooring or other hard surfaces that feel cleaner and more modern.
That doesn’t mean you shouldn’t install carpet if you like it. But it’s important to understand that, in today’s market, wall-to-wall carpet will devalue your home. A more flexible option is to stick with hard flooring and use area rugs instead. They add warmth and style, without turning buyers off, and they’re easy to change or remove based on personal taste.
10. Unfinished Basement
A finished basement can add real value to a home. It creates usable space such as a family room, additional bedrooms, or even a rental suite. Buyers see this as a major plus. On the flip side, an unfinished basement is often factored in as a cost.
We found that when preparing a to make an offer to purchase, buyers and brokers will typically discount the home based on the time, materials, and labour required to finish it. This means that simply by not finishing your basement, your property will have a lower value.
That said, not all basements are meant to be finished. This applies especially to those that are fully below grade (entirely unground, with no windows), or found in older homes. It also applies whenever the basement is not properly waterproofed.
If the space isn’t well insulated, or at least partially above grade, finishing it can actually hurt your value. Moisture problems tend to get worse over time, and finishing over a damp basement can lead to mold, damage, and expensive repairs. There are also zoning and safety considerations. For example, basement bedrooms that typically require proper egress windows. Without them, the space can’t legally be counted as living area, limiting both its function and its impact on resale value.
11. Location, Location, Location
Homes that are located in nice neighbourhoods tend to sell for higher amounts than those located in bad neighbourhoods. The things that buyers look for in a good neighbourhood include:
- Good schools
- Parks
- Low crime rates
- Good transportation links
- Access to amenities
- Municipal investment
- Demographics
On the other hand, a home located near unpleasant facilities, undesirable businesses, or low income housing, can devalue your property because these things can make your home less desirable. Some examples include the presence of:
- Strip clubs
- Nightclubs
- Power plants
- Dumps or landfills
- Sewage treatment centers
- Shooting ranges
- Hospitals
12. Traffic And Noise
Noise pollution is one of the top reasons why buyer’s walk away. Homes near busy highways, airports, or train tracks, tend to sell for less, simply because less people are comfortable living next to constant noise. Even inside the home itself, vibrations from planes taking off, or a loud intermittent thunder of trains rolling past the windows can make living uncomfortable for many people.
As top performing Montreal realtor Reda Wahaba explains, “some buyers don’t mind living next to airports or busy roads. For example, I had a client who was born and raised in Mexico City. They were happy to live right next to Montreal Trudeau International Airport, as they were used to seeing planes fly overhead each day. However, these types of clients tend to be the exception. Most of my clients won’t even consider a home near a busy road or flight path.”
Less buyer demand for a home naturally means that the price of the property will be lower, compared to other similar properties.
13. Poor Local School Results
Even if you don’t have children, it’s important to be aware that local schools that consistently perform poorly compared to regional or provincial averages can negatively impact property values. This is because many buyers (especially families), prioritize school quality, which directly affects demand in the area.
However, in this case, good real-estate marketing can help. For instance, if you’re selling, a good realtor may be able to market the home in a way that appeals more to singles or young couples without children, who place less emphasis on schools and more on lifestyle factors like proximity to work, nightlife, or transit.
14. Unpleasant Odours
Buyers can be immediately put off the moment they walk into a home with a bad smell. No one wants to live in a space that smells like cigarettes, pets, damp, or mold. That’s why most real estate agents will advise you to identify the source of any odors and eliminate them when preparing your your home for sale.
In some cases, however, odors aren’t just surface-level, and they may have penetrated into materials like flooring, drywall, or insulation. When that happens, cleaning alone won’t solve the problem, and the only real fix is to remove and replace the affected materials.
In situations like this, your listing agent may advise you to disclose the issue in the seller’s declaration, especially if it can’t be fully resolved before the sale. Whilst this will bring down your property value, it is important to be transparent since, you do not want to be later accused of hidden defects after closing.
Note
What brings down property value? (Home Appraiser Perspective)
Whilst buyers tend to focus on things like bad schools, noisy streets, or overly customized finishes, home appraisers take a more structured approach and evaluate properties based on broader home valuation principles. These include:
- Functional Obsolescence
- Principle of Regression
- Principle of Substitution
- Principle of Conformity
- Principle of Highest and Best Use
Let’s take a closer look at these principles, and how home appraisers use them when they consider what brings down the value of a property.
1. Functional Obsolescence
Functional obsolescence is a real estate valuation term that describes a loss in property value caused by a design, layout, or feature that is outdated, inefficient, or no longer suited to modern buyer needs. Unlike loss of property value caused by physical damage, or wear and tear (like a broken roof), functional obsolescence is a design inefficiency.
Think about the plexes in markets like St. Henri, or Pointe St. Charles. These homes along the Lachine Canal in Montreal were originally built to house industrial workers in the early 20th century. Many of these have small, closed-off kitchens, where buyers now prefer open-plan layouts. This is an example of functional obsolescence.
Other common examples of functional obsolescence in real-estate include:
- Bedrooms only accessible through other rooms (poor layout design)
- Too few bathrooms for the size of the home
- Low ceilings or awkward room shapes
- Outdated systems (e.g., old electrical panels that can’t handle modern equipment)
2. Principle Of Regression
The principal of regression in real-estate is when a high-value property loses value because it is surrounded by lower-value properties. In other words, a premium home can be “pulled down” in value by its neighbourhood context. For example, if there are vacant, neglected, and deteriorating houses nearby, this can drag down the value of all the properties in the neighbourhood.
3. Principle Of Substitution
The Principle of Substitution in real estate appraisal is the idea a home is only worth what a comparable alternative would cost in the current market. If two identical homes are available, rational buyers will always choose the lower-priced option, and this places a natural ceiling on value.
This is why appraisers rely on comparable sales and listings (“comps”) to determine value. If a listing agent prices your property based on overly optimistic comparables, the appraiser will adjust this value downward using more realistic market data that reflects what buyers are actually paying.
4. Principle of Conformity
The Principle of Conformity in real estate appraisal holds that a property achieves its highest value when it aligns with surrounding homes and neighbourhood standards. This is closely tied to the income-earning potential of the typical buyer in that area.
When a home is significantly over-improved, for example, by adding water features in your back garden, a pool, spa, or elaborate landscaping, this may exceed what local buyers can reasonably afford, to buy or maintain. As a result, even high-quality upgrades may not translate into higher sale prices if they push the property beyond what the target segment can support financially.
In these cases, appraisers consider that these types of improvements an unreasonable cost, rather than an asset. Not only do they come with ongoing maintenance costs, but they may also be seen as unnecessary or even burdensome by buyers whose budgets are already stretched.
Ultimately, appraisers know that value is capped by what the typical buyer in that market can pay. When a property’s features exceed the purchasing power of its likely buyer pool, those upgrades can hurt the value of your property.
5. Principle of Highest and Best Use
The Principle of Highest and Best Use holds that a property’s value is based on its most optimal, legally permitted, and financially viable use, not simply how it is currently being used. When a property is restricted from achieving this optimal use, its value can decline.
Legal limitations are a common reason for this. For example, encroachments, such as a neighbouring fence or structure crossing onto your lot, can create expensive disputes and reduce usable land. Easements (servitudes in Québec), like those granted to Hydro-Québec for power lines, can limit what you’re allowed to build or modify on parts of your property. Similarly, zoning bylaws may restrict how the property can be used, such as limiting it to single-family use or preventing certain types of redevelopment.
These limitations can change over time as new servitudes are registered, zoning rules are updated, or issues are discovered. In Québec, appraisers and buyers typically rely on the certificate of location, along with municipal records and title searches, to identify these constraints. If they find restrictions that limit the property’s use or future potential, they will factor this into the valuation and reduce the property’s market value accordingly.
Frequently asked questions
Beyond maintenance, other major value killers include:
– Non-compliant renovations (not built to code or zoning)
– Poor location (noise, schools, undesirable surroundings)
– Overly personalized or low-quality workmanship
– Functional issues like outdated layouts or lack of usable space
From a data standpoint, our buyer surveys consistently showed that property condition and location are the two most important drivers of value. In addition to this, buyers repeatedly flagged unfinished basements, wall-to-wall carpets, and poor workmanship as reasons to reduce their offer price.
The most effective improvements tend to be:
– Fixing structural or mechanical issues first
– Painting your home in whites, and neutral colors
– Enhancing curb appeal
– Improving energy efficiency (windows, insulation, heating systems)
– Making minor kitchens and bathroom updates
If you’re planning renovations, it’s best to start by understanding your home’s current value. This gives you a clear baseline. From there, you can prioritize upgrades that are proven to add value in your local market. To develop a renovation plan that aligns with your goals, it’s best to speak with a local realtor.
👉 Use the Immovision property value estimator for a free, instant valuation of your home.
👉 Use the Immovision Agent Finder to get connected with a local expert who can help you plan your upgrades for free.
Key things to look for:
– Uses recent, local sales data (“comps”)
– Adjusts for property-specific features (size, condition, upgrades)
– Reflects current market conditions (not outdated data)
– Provides a realistic range, not just a single number
Local estimators tend to be more accurate because real estate is highly location-specific. A model trained on Montréal data, for example, will outperform a generic North American tool when valuing a property in Québec.
👉 Use the Immovision’s Montreal Property Value Estimator for a free, instant valuation of any home based in Montreal.
Automated estimators use algorithms to analyze market data and generate a quick estimate. They’re fast and convenient, making them a good starting point but, they can miss nuances like condition, layout, or unique features.
A CMA, on the other hand, is prepared by a real estate professional. It involves a detailed comparison of similar properties that have recently sold, along with adjustments for differences in size, condition, location, and upgrades. This makes it far more accurate, especially for pricing a home before listing.
In practice, many homeowners start with an online estimate and then refine that number with a CMA to arrive at a reliable market value.
Some realtors will run a free CMA for you, as a way to engage initially. You can find agents who offer a free CMA in your area with Immovision’s Agent Finder.
Final Remarks
Many of the things that bring down the value of your property are tied to lower buyer demand. Whether from over-personalization, features that don’t match the majority of buyer preferences, or a neighbourhood with declining value.
The good news is that much of this is within a homeowner’s control. Smart renovations and a neutral, broadly appealing design can help to attract a wide range of buyers. Meanwhile, staying engaged in your community and holding local officials accountable for how they spend your property taxes can also support long-term property values.
At the same time, Canada’s federal and provincial government, and central bank policies also play a role in buyer demand. For instance, the stance on interest rates, land transfer tax, and lending conditions, all influence buyer demand. Overall, Canadian homeowners are in a strong position. As property prices continue to rise faster than real wages, Canadian real-estate remains a solid investment.
Immovision
Find the best renovations for your home (Free)
Get a no-obligation comparative market analysis (CMA) from a local expert, and discover:
- The highest ROI upgrades for your property
- What to avoid wasting money on
- How to increase your home’s value before you renovate
