Smoking - The #1 Home Value Killer

by David on January 8, 2009 · 0 comments

in Miscellaneous, Selling a Home, The Business of Real Estate

When it comes to behaviors and actions people take with regard to their home, I believe smoking is one of the most detrimental if not the most detrimental choices a homeowner can take with regard to the value of their property.  In the industry, there is a term for when an issue exists with a property that a most prospective buyers will find as an obstacle to purchase a home or even insurmountable.  This term is a “Buyer Resistance Issue.”

There are many examples of Buyer Resistance Issues and I divide these up into two categories.  Those that are not uncontrollable by the homeowner and those that are controllable.  Uncontrollable buyer resistance issues can only be addressed by lowering the price of the home.  Controllable issues can be fixed by the homeowner or addressed by a lower price as well.

Uncontrollable Buyer Resistance Issues:

  • Railroad tracks nearby
  • Electrical tower or station close to the home
  • Electrical wires behind the home
  • Commercial space immediately adjacent to the property
  • Blight near the property
  • The home is in a floodzone
  • The home is in a fissure-prone area
  • Landfill close to the property
  • Dairy near the property
  • Known heavy population of scorpions in the area
  • Major road is immediately adjacent to the property
  • Loud, barking dogs at the neighbors’ homes

Controllable & Treatable Buyer Resistance Issues

  • Interior paint choices are extreme in use of colors and style
  • Carpet is in bad need of replacement
  • Excessive pet odor throughout the home
  • Unfinished repair in the property
  • Backyard not landscaped
  • Empty, idle pool
  • The home badly needs updating
  • Loud, barking dogs in the home

Smoking Crosses Both Categories

Now, where does smoking fall into this hierarchy?  Smoking is one of the unique buyer resistance issues that can fall into both categories.  As a homeowner, the homeowner can completely control what is done on their property.  In other words, the homeowner has a choice as to how they take care of the property.  If smoking is done in the home, it won’t take long for the smell to permeate the house.  Over time, the smoke will set into the paint and air ducts.

After an extended period of smoking in the home, it will be very difficult to eradicate the odor.  The entire interior will likely have to be repainted, carpet and drapes cleaned or even more likely replaced, and a remediation company would need to be brought in to work on the remaining odor.  There is no guarantee that everything could be removed without going to the studs.  As such, the remedy becomes untreatable by the homeowner at this point.

What Does It Cost the Homeowner?

There is no definitive estimate on what the impact is to the value of a home where the homeowner has smoked inside and the odor is pervasive.  There is no doubt that many buyers, even buyers who are smokers themselves, are immediately turned off of a home where they can smell smoke inside.  Some buyers won’t even finish the home showing once they smell smoke.

Remediation of the smoking can cost more in terms of new carpeting, paint, and any other treatments needed on the property.  So, these are potential real costs.

If the homeowner simply wants to sell the property, then the cost becomes the lost value in respect to the sales price.  I personally believe that smoking can cost as much as 5% of the value of the home depending on the severity as compared to a similar smoke-free property.  However, the home seller still has to have more buyers come through the property to account for the abject rejection of the property based on any noticeable trace of smoke in the property.

Tell Tale Ways for Buyers to Know When the Homeowner Smokes in the Home

When I am showing homes to clients, I call out any odors and issues I experience in the property, especially when it comes to cigarette smoke.  Many times, the smoking can be purged from the home without major expense, but not always.  But this is a good issue to really understand your buyer and what they are looking for and what they aren’t.  And to call this out when even they may not have picked up on it is a way to build their trust.

When I suspect cigarette smoking, I look for cigarette butts (ashtrays aren’t often used) either in the front of the home by the door or in the backyard.  The presence of a cigarette lighter is another sign.  A non-smoker has next to no need for one.

Finally, if cigarette smoking is suspected, it can make sense to ask the listing Realtor to inquire with the homeowner.

Tips for the Homeowner Who Smokes

It’s simple and obvious.  If you have to smoke, smoke in the backyard only and in a location far away from the home.  Don’t smoke in the garage as there is the potential for smoke to waft into the home.  Also, consider that the smoke in your home may permeate from the clothes you have on.  Altogether, do your best to keep smoking and smoke out of the home or you may find that it costs you more than you planned on.


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