Location, location, location is a buzz phrase in the realty business, and a British study has shown that a house with good internet connections can command a better price. Research conducted by satellite operator Eutelsat and published in the Leicestershire Mercury has determined that home buyers will pay more for a property with reliable internet service.
Almost 40 percent of respondents said that they would not consider purchasing a home with poor digital connections. Slightly more than half of the people surveyed said that they would bypass an entire area that was discovered to have slow internet speeds. Some potential buyers said they would only consider a property with sketchy internet if it included a 16 percent discount.
In practical terms, the study determined that the average home lost US$51,756 off the asking price if poor internet was part of the package. James Soames, Eustelsat Marketing Director noted.
“Connecting reliably to broadband, particularly in rural areas, has been a real pain point for many of us in the UK. Given the huge switch to working from home this year, fast, affordable and easily available service is needed more than ever.”
When ranking different features that were important to them, the top vote-getter was good internet, with 51 percent of buyers placing it as their top consideration. It outranked the home’s appearance, selected by 27 percent of respondents as the most important item. The availability of nearby shopping was most appealing to only 25 percent of potential home buyers.
In a head-to-head battle between broadband and bathrooms, 14 percent of those surveyed said they would give up an extra bath in favor of good connectivity. A surprising seven percent said that they would surrender having an indoor bathroom entirely if it meant a good internet connection.
The British population has expressed a desire to live in a rural community, especially during time when working from home is a viable, and necessary, option for so many people. A home in a bucolic location, with a good internet connection, is a seller’s market. A beautiful house with a weak connection can take a huge bite out of the sales price. Taken to the extreme, homes in Britain’s most expensive community, Virginia Water, Surrey have a median price tag of US$1.3 million. The same home without good digital connectivity can expect to shave US$300,000 off the asking price.
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