Insight on Maximizing Your Smart Home Product Investment
Living in a futuristic home is cool.
A recent Better Homes and Gardens survey and standard generational analysis support the idea that Gen X and Millennials are both tech savvy enough to appreciate Smart Home features when making a purchasing decision. Making your house more attractive than its architectural peers in the market means a quicker sale and the ability to carry a higher price, giving you more of a chance to "level up" in your own housing search.
Different sources cite a range of 5% to 11% as being what your investment in these products can yield in your home's resale. However, not all smart home investments are made equal. Obviously, the more expensive investments like Smart Appliances count for more when someone is looking to buy.
However, the impact is a bit uncertain when inserting devices that are not typically thought of by the average buyer. An example would be a digital kitchen backsplash. Sounds cool, but will the buyer pay extra?
According to a 2017 report by ColdWell Banker, a home is not a Smart Home until it has at least 3 smart devices. In the same report, it lists the categories of the most inquired about devices: Security, Energy Management, and Entertainment. Combined with smart appliances, this means that the smart devices that would bring the biggest ROI are:
This means that a smart thermostat, security camera, and speakers are all that is needed for your home to be considered smart. But the more extensive the collection of smart devices, the closer to the 11% bump you will get.
If your house is valued at $300k, spending $4500 on a Smart Fridge, $1500 on a Smart Oven, and $1000 on thermostat, camera, and speakers, it basically means your $8,000 investment would yield $30,000.
Given this analysis, your smart home devices inside the house should not be at odds with the market for your house itself. For a house that is worth more, it will make sense to buy $30k worth of high end smart devices. But doing so for a $300k house may only allow you to break even.
Lastly, while a Smart Home hub will not bring the high ROI itself, it enables the high-ROI devices that are added in its internal network. The hub itself should be your initial purchase in this realm. With that said, it's time to get started on future-proofing your house!