Most definitely! There is nothing more offensive and unattractive to a potential buyer, especially one that does not smoke or who has children, than the pungent smell of cigarette smoke permeating a home.  A lot of deals fall through every day when a prospective buyer enters a home and is greeted by the smell of cigarettes.  The buyer will walk, even though the home may meet all of their needs.  The reason for this is the assumption that the odor has permeated every wall and carpet in the home and will not be easily removed. 

A smoker wishing to sell a home should make sure that all odors are removed from the home by deep cleaning carpets and painting the walls before placing it on the market.  Once the odors have been removed, a smoker should only smoke outdoors to avoid recontamination.  Sellers should keep in mind that since non-smokers have been protected by smoke-free laws for restaurants and work places, their sensitivity to smoke has increased.  Therefore, a non-smoker will react strongly to a smoker’s home and, in today’s world a vast majority of the market either no longer smokes or has been trained not to smoke indoors.