November 23, 2021
Improve the Value of Your Home with Fiber Optics
When it comes to home improvement, we typically envision remodeling the kitchen, adding a garage, or finishing the basement, all of which enhance our enjoyment of the house while we live there and increase its value if we decide to move. These updates often top the list of real estate agent recommendations for clients looking to improve the property before listing and increase the asking price.
But have you thought about your house’s technology? What value does it add? More than you might think.
Just like running water and electricity, a fast, reliable internet connection is expected in most home markets. However, which type of internet connection is a critical differentiator that can add value to the selling price.
Despite decades of technological advancements, the standard internet connection in most areas is still provided via copper wires, rolled out as either a Digital Service Line (DSL), which uses your home telephone line, or cable internet. Copper internet connection is so ubiquitous with standard internet connections that it is almost treated like any other utility. And just like with other utilities, some areas only have one provider, so you’re stuck with whatever technology it offers. Chances are it’s copper.
But if you live in an area where you get your internet via fiber optics, you have an advantage not enjoyed by your copper-dependent neighbors: higher home value.
Although fiber optic internet is not new – the technology was invented in 1970 – it has yet to gain significant traction in many markets. Even densely populated urban and suburban areas are not blanketed with fiber yet. In fact, only about 1/3 of US households currently have access to fiber internet, so the technology can still be a differentiating factor when selling a house no matter where you live.
How much value does it add?
A 2015 study revealed that adding fiber-optic internet can increase a home’s value by over 3%. While that might not sound like much, it’s an additional $9,000 tacked onto a $300,000 home. Who couldn't use an extra nine grand?
What do you have to pay each month to earn back that extra $9,000 in home value? According to Broadbandsearch.net, the average price for fiber optic internet service is $0.48 per megabit per second (Mbps), compared to $0.83 for cable and $1.53 for DSL. That means if you sign up for 100 Mbps fiber-optic service, you pay $48 per month on average. At that rate, it would take 187 months (over 15 years) to pay more than the $9,000 added value to the $300,000 example home because you have fiber optic internet. Keep in mind, $0.48 per Mbps is an average price; some areas are higher, some lower. (Our 250 Mbps plan, for example, is only $75 per month, far less than the $120 per month national average for that speed.)
Why does fiber optic internet make such a difference?
While sharing may be caring, there are times when it’s okay not to be neighborly, such as when you share bandwidth with the folks next door and across the street, cutting into your bandwidth. Upload and download speeds can vary depending on who else is online at the time. However, fiber internet comes through a dedicated fiber line that you don’t share. It’s all yours — every megabit and gigabit.
If you have never experienced the miracle that is fiber internet, the difference in speed and reliability might not mean much. But if you have, you know how awesome it is. Fiber is decidedly faster than even the fastest copper connection, so data flies to and from your home at speeds over 100x faster than you typically experience.
Fiber connectivity also reduces ping rate, latency, lag, and jitter, so gaming, streaming, social media, and video conferencing move smoother and faster.
With more and more folks working from home and many students on either fully remote or a hybrid school model, home internet is more important than ever. Not only can you enjoy this high-speed fiber-optic connection yourself, but if you sell your house, the new owners will likely be willing to pay a bit extra so they can enjoy it, too.