Today, it’s hard to find something a homeowner cannot control from a smartphone. Things such as programming the TV, setting the thermostat, checking for water leaks, turning off the lights and locking the doors, setting alarms, and watching pets via connected devices are highly sought-after by many tech-savvy homeowners. However, all of these technological advances beg the question: does the added investment required for a smart home have actual value in terms of return on investment (ROI)?

The short answer: As of right now, smart homes don’t have a significant ROI, so the cost of upgrading systems to create a smart home isn’t advised at this time. Instead, think about how many years you plan to spend in this home and only make the investment if you’re building new space, a whole new house, or if you plan on enjoying it yourself for the foreseeable future. Save the expensive upgrades for the kitchen and bathrooms—as they are rooms that have a traditionally strong ROI.

For today’s post, we’re going to briefly outline what constitutes a “smart home” and how to make a smart home more appealing to buyers. Finally, we’ll also touch on some reasons why a smart home just isn’t for everyone.

What is a “smart home?”
Usually, any home equipped with televisions, lights, computers, and home security systems that can be controlled over a central network is one that can be considered a smart home. It may also include connected appliances, irrigation, smoke detectors, or other security detection devices.

How can homeowners make a smart home appealing to buyers?
If you have already spent the money creating a smart home and have installed multiple connected devices, you might want to consider taking the extra time to make it more appealing to prospective buyers than just adding the “smart home” tag to the real estate listing. Here are some suggestions to help sell your smart home:

  • Highlight energy savings: newer appliances with the EnergyStar® rating are always valued to new homebuyers as they save them money. If any of your smart home devices aim to save energy costs, this is incredibly valuable information that is worth mentioning.
  • Sell it with the necessary technology: although you may want to take some of the smart devices with you when you sell, consider including all of them as part of the total package.
  • Install a user-friendly smart home system: not all systems are easy to use, especially for those non-tech-oriented people.
  • Be cost-savvy: don’t create a high-maintenance system that ends up costing the new homeowners a lot of money to operate or maintain.
  • Have a system that can be turned off: if the buyer decides they don’t want it, the house should still function properly if the system is removed or turned off. Nothing is more frustrating than to be handcuffed to a system you don’t want, need or understand.
  • Sell it with a warranty: this gives new homeowners a little peace of mind when owning a home that might need updates and repairs. If the warranty has expired, offer to include a third-party extended warranty that covers the first year after purchase.
  • Use a system that has customer or technical support: that way people who aren’t used to smart phones and smart home technology have someone to call to get assistance.

Why a smart home might not be for every homeowner
While smart homes can have great features, they aren’t for everyone. Smart homes are relatively new technology and that technology is always changing. What was installed three years ago may be virtually obsolete by the time you’re ready to sell. Most homebuyers are not interested in the type of home wherein the devices needed to run the home are outdated. These outdated devices may have quirks to work out or require a lot of additional purchases the buyer might need for the technology to work properly. And that’s not even taking into account any learning curve that may be required.

Finally, the cost to maintain a smart home isn’t cheap, which could mean a smart home may be more difficult to sell than you originally thought. So the decision to upgrade or convert your home to a smart home requires careful thought and due diligence.

Smart homes may be in their infancy, but along with technology, they are growing in popularity and prominence. If you have an interest in upgrading your home with smart technology, be sure to reach out to the experts at MDV Remodeling to help you make “smart” choices! Visit our website for a free estimate!

*image courtesy of Thinkstock