Does Type of Utilities Affect Property Values? What to Know

Properties with reliable utilities are easier to sell and often attract higher offers. On the other hand, homes with outdated or damaged systems—like leaky pipes, flickering lights, or no internet—can quickly turn buyers away. It’s easy to see how utility issues can make selling a home a stressful experience, especially when multiple problems stack up.

At Fantastic Homes, we specialize in helping homeowners navigate these challenges. Whether your property is in probate, foreclosure, or simply needs significant updates, we buy homes “as-is,” taking the burden of repairs and utility upgrades off your shoulders. Utilities can make or break your property’s market value, but with the right knowledge—and the right buyer—you can still come out ahead. Let’s dive into what you need to know to take control of your sale.

Why Do Basic Utilities Matter When Selling Your Home?

Key Role in Functionality

Basic utilities like water, electricity, sewage, and internet are the foundation of a functional home. Without basic utilities, a property is simply unlivable. Clean water ensures daily tasks like cooking and bathing aren’t a struggle. Electricity powers everything from lights to appliances. Among the most common utilities, high-speed internet has become a necessity for work and entertainment. When utilities work seamlessly, they add tremendous value to a home by making it move-in ready for buyers.

If you’re reviewing the preliminary title report for a property you plan to sell, ensure it reflects the condition of essential utilities. Buyers will often scrutinize these features before finalizing their decision.

Impact on Buyer Decisions

No one wants to buy a headache. Poor utility infrastructure immediately raises red flags for buyers. A home with frequent power outages or a questionable water supply signals future hassles and repair costs, which often leads to lower offers or no offers at all. Buyers want convenience and peace of mind, not expensive upgrades the moment they move in.

Special Concerns for Distressed Properties

Homes in foreclosure, probate, or under tax liens often have outdated or neglected utility systems. These issues can delay sales or result in heavy price reductions. For sellers facing financial stress, repairing utilities may not be an option. That’s where working with Fantastic Homes can be a lifesaver—we’ll buy the property “as-is,” no repairs needed.

What Are the Common Utilities That Impact Property Values?

Utilities play a critical role in determining the value and appeal of any property. When answering does type of utilities affect property values, studies consistently show that reliable utilities make a property far more desirable. Let’s break down how common utilities impact property values.

Water Supply: A Dealbreaker for Buyers

Water is one of the most essential utilities, directly affecting a property’s market value and buyer appeal. Its availability, quality, and reliability are non-negotiable for many prospective homeowners. Data shows that unreliable water systems, like those impacted by frequent boil water notices (BWNs), can significantly lower home values, particularly for medium- to low-priced properties.

Clean Water Access: Reliable and clean water access isn’t just a convenience—it’s a necessity that can influence home prices by thousands of dollars. Research conducted in Marion County, West Virginia, found that reducing boil water notices by just one day per year could increase the value of low-priced homes by $2,100 to $2,700 and mid-priced homes by $850 to $1,000. This demonstrates how buyers prioritize water reliability when considering a purchase.

Pressure and Quality: Low water pressure, rust-colored water, or other quality concerns don’t just signal potential repair costs—they also devalue homes. In Marion County, properties frequently affected by BWNs saw depreciation ranging from 0.6% to as much as 8.4% of their sale price, with lower-priced homes suffering the greatest impact. Buyers are unlikely to commit to properties with persistent water issues unless offered significant discounts.

Impact on Vacant or Run-Down Homes: Deferred maintenance on water systems is a common issue in inherited or vacant properties, often leading to visible damage like rusted pipes or water-stained walls. These problems further deter buyers, as they suggest costly repairs. Marion County’s findings revealed that properties with water reliability issues consistently sold for less, underscoring how neglect in this area can prolong sales or force heavy price reductions.

For sellers, addressing water supply issues—or working with buyers willing to purchase homes “as-is”—can make a significant difference in overcoming these challenges.

Electricity Availability: A Necessity

Electricity is essential for any home, but its reliability and efficiency can greatly influence a property’s market value. Research has shown that outdated electrical systems or frequent power outages can diminish a home’s value by as much as 10%.

If you’re managing a distressed property and wondering how long does foreclosure take, ensuring utilities like electricity are updated may help improve your chances of a quicker sale before deadlines hit.

Reliability and Outages: Homes in areas prone to outages or with outdated electrical panels are far less appealing to buyers. A study in Connecticut and Massachusetts revealed that homes with visible power line issues or inconsistent service sold for 3-6% less on average than comparable properties with stable electricity. Adding a backup generator or updating wiring can mitigate these concerns and boost value.

Energy-Efficient Systems: Properties with modern, energy-efficient systems are increasingly sought after. Solar panels, for example, can add $15,000-$20,000 to a home’s value, according to the U.S. Department of Energy. Buyers appreciate the reduced utility costs and environmental benefits, making these systems a key selling point.

Relevance for Inherited or Tax-Delinquent Properties: Many older, inherited properties feature outdated electrical systems that don’t meet modern safety standards. Real estate experts estimate that upgrading these systems can increase a home’s resale value by 5-7%, especially if energy-efficient solutions like smart thermostats are included.

Sewage and Waste Management: Essential for Health and Value

Proper sewage and waste management systems are critical to a property’s livability and compliance with local codes. Neglected systems can not only lower value but also result in legal and environmental challenges.

Hygiene Concerns: An effective waste management system is essential for maintaining hygiene and avoiding health risks. Properties with poorly functioning sewage systems may experience a reduction in value, as buyers associate these issues with high repair costs and future maintenance headaches.

Code Violations: Outdated sewage systems that fail to meet municipal codes are a liability. In areas with stricter regulations, homes with code violations can see a drop in value by up to 12%. Sellers who can’t afford to fix these problems can benefit from working with companies like Fantastic Homes to sell their property “as-is” without incurring additional expenses.

Internet Connectivity: A Modern Non-Negotiable

In today’s tech-driven world, internet connectivity has become as vital as water or electricity for many homebuyers. As smart homes, remote work, and online education continue to grow, high-speed broadband is no longer a luxury—it’s an expectation. Homes lacking reliable internet often face reduced interest and lower offers.

Buyers Demand High-Speed Internet: Broadband quality ranks high on buyers’ wish lists, often surpassing traditional priorities like the number of bedrooms or transport links. A UK study revealed that 20% of buyers ranked broadband quality as a top concern—more than those who prioritized the property’s age or proximity to transportation. In fact, 69% of real estate agents reported a surge in demand for reliable internet access since 2020, driven by the rise of remote work and distance learning.

Impact on Older Properties: Many older homes lack the infrastructure to support high-speed internet, which can be a dealbreaker for buyers relying on broadband for work, education, or entertainment. In the U.S., 33% of realtors report that broadband availability is a daily discussion point with clients. Properties without this essential feature may see prolonged sales timelines or require price reductions to attract offers.

For sellers, ensuring internet reliability—or highlighting upgrade options—can make the difference between a fast sale and a listing that lingers on the market.

Does Type of Utilities Affect Property Values in Distressed Homes?

Outdated or Damaged Systems

Distressed homes often come with utility issues like faulty wiring, outdated plumbing, or no internet access. These problems make them harder to sell and push potential buyers to negotiate for steep discounts.

Buyer Reluctance

Utility concerns can scare off buyers entirely. A home with unreliable systems means extra costs, delays, and uncertainty—factors most buyers aren’t willing to take on.

Solutions from Fantastic Homes

At Fantastic Homes, we specialize in buying homes ‘as-is,’ no matter the condition, helping homeowners move forward without the hassle of repairs. Whether your property has outdated utilities, code violations, or hasn’t been updated in decades, we’ll take it off your hands quickly and for a fair price.

How Upgrading Basic Utilities Can Boost Value

Simple Upgrades, Big Returns

Investing in energy-efficient appliances or replacing outdated plumbing can significantly increase your home’s value. Small fixes like upgrading light fixtures or adding a programmable thermostat can also make a big difference.

Renewable Energy

Buyers love eco-friendly homes. Adding solar panels or energy-efficient windows isn’t just good for the environment—it’s a smart financial move that increases property appeal.

Opportunities for Sellers

Even small utility upgrades can lead to higher offers without requiring full-scale renovations. These minor investments can make your home more attractive while still being affordable.

What to Do If Utilities Are Holding You Back

Options for Distressed Homeowners

If your utilities are outdated or nonfunctional, selling to a company like Fantastic Homes could be the best solution. We handle properties in any condition, so you won’t need to spend time or money on repairs.

Hassle-Free Solution

Selling to us means skipping the long, stressful process of inspections, repairs, and negotiations. We make the process smooth and simple, giving you cash quickly.

Flexible and Fast Closings

We work on your timeline, offering flexible closing dates to fit your needs. For more information, reach out to us via our Contact page.

Final Thoughts on Does Type of Utilities Affect Property Values

Understanding how does type of utilities affect property values is key to optimizing your property’s value and marketability. While outdated systems often scare buyers away, there’s no need to panic. Whether you’re a homeowner in distress or searching for a real estate agent in Chicago, contact us today for a no-obligation offer and let us make selling your home easy, no matter the condition!