Source: cell2sell.ca

What is a house appraisal based on? Most homeowners are aware of the classic factors that affect their property value: number of bedrooms and bathrooms, the age and condition of the home, quality of the neighborhood and schools, and so on.

But buyers today are looking for a wider range of factors than ever before, and there’s one that’s especially important: the quality of internet service available at the property.

How does the quality and availability of internet service affect a home’s valuation? While researchers haven’t fully examined this question yet, a picture is starting to emerge — and, as you might expect, it favors homeowners who have consistent access to high-speed broadband.

Why Internet Access Matters In Home Valuation

Source: wtcks.com

High-speed broadband internet access is no longer a luxury or a nice-to-have — it’s a necessity for most Americans’ lifestyle. Here’s a quick look at some of the major reasons why.

Demand for High-Speed Connectivity

Without high-speed broadband, it’s hard or impossible to game online, stream a movie, take virtual classes, or many of the other activities we take for granted.

With so many households relying on internet-connected devices, having reliable broadband is now one of the key features buyers consider when choosing a home.

Support for Smart Home Technology

Reliance on digital devices goes deeper than phones and tablets. Many homeowners also use smart home devices to manage lighting, security, energy efficiency, and other key parts of domestic life.

These devices often require a strong, stable internet connection to function properly, making broadband access a key factor in modern home infrastructure.

Appeal to Tech-Savvy Buyers

In a survey by the Fiber Broadband Association where home buyers were asked to rank the features that mattered most to them, “very high-speed/reliable broadband internet” was the second-most desirable feature.

That places it behind only laundry rooms for single-family homes or an in-unit washer and dryer for multi-unit buildings. With so many Americans taking remote jobs that require constant use of digital devices, it’s no surprise that many of them prioritize a fast internet connection.

Impact of Internet Speed and Availability On Property Value

Source: whathouse.com

The million-dollar question: Does high-speed internet availability actually translate into a higher property value for homeowners?

Opinion varies on how much internet availability translates into hard numbers, but with internet service a more crucial resource than ever before, it’s not hard to see why it could be a property value boost for some homeowners.

Valuations for Fiber-Connected Homes

At least one study has suggested that theoretical valuations are higher for properties where fiber internet is available.

The Fiber Broadband Association’s survey found an overall 3.5% price premium in the hypothetical valuation of a property that includes high-speed fiber access.

It’s safe to assume that premium could fluctuate depending on many other factors — but at the very least, it’s unlikely that a high-speed internet connection will do anything to hurt your home’s value.

Internet As a Utility In Modern Appraisals

These days, home appraisers often view internet access as a basic utility, on par with electricity and running water.

When appraisers evaluate a property, a lack of high-speed connectivity could lower a home’s value, as buyers increasingly prioritize staying connected in their daily lives.

In competitive housing markets, properties with superior broadband technology pre-installed may even stand out as more desirable to potential buyers.

Ways Internet Quality Can Affect Homebuyer Decisions

Source: cioafrica.co

When the cards are down and it’s time to make an offer, how might internet quality affect a homebuyer’s choices? These factors are all worth considering:

Remote Work and e-Learning Considerations

The increase in remote work has driven a lot of relocations — but a fast and reliable connection is a non-negotiable for these workers, and in some places they have more difficulty finding one. In regions where high-speed internet is harder to find, homes with a strong connection can hold a major advantage.

Online Home Listing Trends

Increasingly, sellers whose properties have fiber internet are showcasing that fact in their home listings, alongside other amenities like finished basements and outbuildings.

By emphasizing connectivity in listings, sellers signal that their property is ready for modern needs, from streaming and gaming to smart home setups.

Neighborhood Comparisons

Internet quality can vary significantly between neighborhoods, even within the same city or region.

Neighborhoods with better broadband options are likely to appeal to buyers who rely on stable internet for work, school, or everyday life, potentially giving those properties a competitive edge.

Leveraging Broadband Access for Homeowners

Source: businessinsider.com

How can homeowners leverage the power of broadband internet access to boost their home values? These are a few of the key ways that today’s sellers are using their internet connections to get the best price for their property.

Upgrading Infrastructure Before Selling

In some cases, it might make sense to upgrade your home’s internet infrastructure before you put it on the market.

Ordering a fiber to the home (FTTH) installation can be a particularly potent way to increase the property’s appeal, especially in areas where fiber access is limited.

This kind of improvement may also attract a broader pool of buyers, including those who prioritize high-performance internet for remote work and streaming.

Highlighting Internet Access

If other home sellers are including high-speed internet access in their listings, maybe you should be, too! Ask your real estate agent whether they’ve included information about your home’s broadband options and providers in the listing details.

You might consider running an internet speed test to showcase the actual performance potential of your connection, as buyers often value concrete numbers over general claims.

There’s no “brave new world” of home valuation. For the most part, the basic factors are the same as they’ve always been: Buyers want a well-maintained home in a good location.

However, homes that lack high-speed internet access might not be commanding the full price they could be — and homes where the owners have invested in high-speed connections could be the big winners of tomorrow’s markets.