When a homeowner is renovating their home, it is a "no-brainer" that marble countertops and hardwood floors are going to add value, but what about home technology?
The short answer is that it depends on the system itself—the home may or may not increase in actual monetary value, but can definitely add market value. In a study done by Coldwell Banker, it was found that 64% of buyers have an interest in buying a smart home, resulting in a quicker turnaround rate for a sale. As the demand for smart devices increases, the understanding of the value they bring is growing. Additionally, it has been found that buyers are willing to spend more on a home that comes equipped with a smart system as opposed to not.
In the same way that appraisers might add value for a swimming pool, while some don’t, smart home systems experience a similar—or in some cases more difficult—challenge. The value given to smart system additions really depends on personal preference for those features. Despite the bottom line of not getting an exact dollar for dollar return on an investment, there are greater benefits that come with a smart system if the buyer chooses to sell their home further down the line.
In an ever more competitive market, 71% of buyers are looking for move-in ready options as opposed to a fixer upper. Additionally, 61% of millennials would prefer a smart-tech home as well as 59% of parents with children living in the home. It’s not a secret that smart home technology is becoming more vital and can make a property on the market the more desirable option.
In conclusion, a home’s smart technology could give the buyer an edge over other sellers, but it is challenging to assign a dollar value to it, experts say. If a customer chooses to install a smart home system, then do so not with the primary objective of boosting resale value, but rather to potentially help the home sell faster and to enhance one’s own lifestyle while residing in it.
"At the high end, it’s absolutely crucial to have high-end tech," said Catherine Bassick, senior international real estate advisor for Sotheby's. "There are people who will remodel an older home and it could be beautiful, but they don’t have the wiring to make it updated for today, and it really does turn off buyers."