Home Selling in Los Gatos>Question Details

Neil Kennedy, Home Buyer in Los Gatos, CA

Does a Broadband Internet Connection Add Value to Home and/or Make it Easier to Sell?

Asked by Neil Kennedy, Los Gatos, CA Tue Sep 11, 2012

We live in the Los Gatos/Santa Cruz Mtns and have limited internet service. We have an opportunity to invest in a project to bring broadband internet cable to our neighborhood but it will cost an initial $2-4,000. Will this investment add value to my home and help me sell my house in the future?

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11
Possibly, but I am not sure I would participate if you were not planning on staying in the house long enough to recover the investment. It is very similiar to any other upgrades.
1 vote Thank Flag Link Tue Sep 11, 2012
Interesting question, but I doubt broadband internet cracks the top 10 best investment in a home when it comes to ROI! Most homes purchase decisions are based on schools, kitchen, bathrooms, size, and location of the home. If broadband internet was the ONLY decision criteria, we would all be lined up to move to Mountain View where Google is offering FREE wifi.

Will someone pay $4,000 more for your home than your next door neighbor who does NOT have broadband!? We doubt it.
0 votes Thank Flag Link Thu Aug 8, 2013
Bay area residents can't survive without internet. However wireless is taking over many hard wired applications. The cost of putting in cables may be meaningless in the future. (cheaper DirectTV)

But aren't people living in the mountains a bunch of hermits that don't want to be that close to civilization? Actually wouldn't quick easy access through the internet save driving?

I sure wouldn't want to bet that the cost would be recovered by sales value. Broadband internet runs almost $100 a month. Looking at $2,000 you are basically facing twice the cost for internet over the next two years that valley city dwellers pay. Judge it by its current value to you.

Juliana Lee
650-857-1000
Keller Williams Realty
Web Reference: http://www.julianalee.com
0 votes Thank Flag Link Tue Sep 25, 2012
Hi,
I also think it will not add value to your home, but it would be nice to have and if you can afford it why not

good luck!
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0 votes Thank Flag Link Tue Sep 11, 2012
Ron and Grace are spot on, in my opinion. The valley buyers rely on their internet and removing an objection is always a bonus.


I ask you this, will it improve your enjoyment of your home? How long do you plan on living there? If it will benefit you and you can afford the cost it may be the right choice, especially if you plan on living there for a while.

Have an amazing day!
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Tue Sep 11, 2012
Hi Neil and thanks for your post.

In my estimation, it won't necessary add value to your home, but it wil resolve any obstacles that a buyer may have in making an offer on the property versus on offer on a similar property maybe located elsewhere.

As much as I'd love to say that you can forego the expense, truth is that selling homes in the mountains (if that is where this property is located) can always be a problem. Despite how "hot" the market is down here, the number of buyers actually willing to live in the mountains is quite a great deal smaller than it would be if the home were located in the valley or just at the foot of a mountain. Unlike those of us who live in the valley, getting utilities (from water to sewer to electricity and internet) all have to be more carefully considered especially if the area where the home is located is not near a main water line or doesn't have access to sewer or is not accessible for internet.

Anytime that you can address any obstacle that can or might impede any buyer from considering your home versus another property, it's money both well spent and used for you now and in the future.

So, for this question...yes, I do think it will help SELL your home, but as to value added, there may not be any value added when you finally want to sell.

Good luck!
Grace Morioka
0 votes Thank Flag Link Tue Sep 11, 2012
Broadband access is expected for most of the places in the Valley. On another hand, I can't imagine that having broadband access will convince the buyers one way or another. I would not pay for it unless I would want it for myself.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Tue Sep 11, 2012
No .
0 votes Thank Flag Link Tue Sep 11, 2012
Having access to broadband is generally considered a must have in the Silicon Valley; and it's generally available. Not having broadband access could limit a seller's pool of prospective buyer's but I don't believe having the service would add value to a home.

Now to be specific about your home in the Santa Cruz Mountains...I too live in the SC Mtn's and when I have buyers looking to purchase in our area, the first question I ask is "do you need internet connectivity?" Based on the answer, I include or exclude properties. That being said, we all know that you can get satellite just about anywhere but it's not very good for someone who relies on having fast internet capability. So when it comes to the mountains, selling a home without internet could make it more difficult. Does having it add value to your home, probably not much if at all.

Hope this helps!

Ron
0 votes Thank Flag Link Tue Sep 11, 2012
Up to $4k that seems like a lot. I'm not convinced this will add any noticeable value on the resale of your home but it will be a "perk" if a buyer is choosing between your home and another. In the SC mountains it is nice to have internet capability. If you can afford the investment, go ahead, and in the meantime you can enjoy it as well.
0 votes Thank Flag Link Tue Sep 11, 2012
That is hard to estimate, how many other homes are taking part in this? how much do you have to contribute? It might or might not add value, but it will add desireability to all the homes that have it, so more people may be willing to look at the homes there.
Feel free to contact me with any questions.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
CDPE
0 votes Thank Flag Link Tue Sep 11, 2012
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