For as long as I can remember, real estate professionals have advised homeowners to invest in better kitchens and baths in order to increase the resale value of their properties. Kitchens and baths are apparently the most coveted rooms in the home for buyers. But there is a new game in town: home automation.
Can the smart home tech that powers home automation increase property values? Apparently it can, according to a recently released market research report. The report suggests that a property’s value could go up by as much as 5% with the installation of key smart home features.
For every $100k in value, smart home devices could generate an additional $5k. So if your home is worth $300k without smart home tech, it could be worth as much as $315k with it.
More Information From the Report
Higher property values are just one aspect of the smart home question. According to the report, there are other things worth mentioning. For example, 78% of home buyers say they will pay more for properties already equipped with smart technologies. Smart home tech appeals most to Gen Z and millennial buyers.
What do the buyers want? Smart security systems appear to be the most attractive option. But buyers are also looking for devices that make their homes more energy efficient. They appreciate smart climate control and lighting.
Enjoy Now, Sell Later
Installing smart home tech in order to increase the value of your property does not seem like a bad idea. If you are planning to continue living in the home for the foreseeable future, there is an added reason for doing so: you get to enjoy the benefits of home automation for as long as you continue living in the home.
The idea is to enjoy home automation yourself, then sell your property for more money later. It’s a win-win. But any plans to do so need to be approached with the proper mindset. A system needs to be easy enough for new owners to use but not so basic as to make it unattractive.
Purchase and Installation Options
A big part of the equation is the decision about purchase and installation. The easiest way to equip a home with smart technology is to invest in a professionally installed system. Vivint is one of a number of nationally known providers.
A professionally installed system should offer high quality equipment along with strong customer support. It’s an ideal package that can add value to a home when it comes time to sell. But there is a downside: what if prospective buyers are not interested in continuing the service agreement with your provider?
DIY installation is another option. Consumers have plenty of choices in terms of ecosystems and packages. Big names like Google and Amazon support a long list of devices including smart hubs and smart speakers. A homeowner could even build an entire system from scratch, using a broad selection of off-brand devices. But that could get complicated for a future buyer.
It’s Worth Looking Into
If your home isn’t currently equipped with a nice selection of home automation devices, changing things is worth looking into. Chances are you are going to sell your home at some point. And the data clearly shows that buyers are interested enough in home automation that they will pay more for it.
Invest in modernizing the kitchen and bath if they are outdated. But also give some thought to home automation. It could add quite a bit of value to your home. And as time goes on, that value should grow.
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