Do buyers care about Home Automation?
Thursday, July 12th, 2007 at 1:52 am 
By Ryan BrownI am currently in the planning stages for a home remodel. Being a technology enthusiast (gadget freak?) I’m excited to include some home automation capability in the design.
However, I’ve always been on the fence about justifying the expense of home automation. As a Realtor, I like to know the buyer appeal/Return-On-Investment (ROI) of any work I do on my property. For example, there is substantial data to support the ROI of a kitchen or bath remodel.
But what about Home Automation? If I spend $5k or $10k on a simple, usable system, is the eventual buyer of my home going to care? Will they value it near the cost of the system? As I plan to sell my house some day, it is an important consideration.
Facing this dilemma, I was excited to read these two articles recently covering this very subject. First, the NY Times discussing the spread of automation technology in upscale condos (article link & excerpt below).
Wired To Sell
By LISA KEYS
Published: June 10, 2007
It may sound space age, but sophisticated smart-home technology is increasingly available and includes automation systems that allow residents to control lighting, raise and lower window shades and change a room’s climate, via computers. In many instances, they can manipulate a variety of audio and visual functions, allowing users to listen to different types of music in different rooms or transfer a movie from one plasma-screen television to another.
…
This sort of technology may be most familiar to buyers of new houses in the suburbs, but it is now becoming the latest must-have amenity in condos at every price level that are being built in and around New York City.
More recently, the Statesman picked up an article from the Atlanta Journal-Constitution describing new automation technology as a selling tool for homes (article & excerpt below).
High-tech features seen as new selling tool
By Julie B. Hairston
ATLANTA JOURNAL-CONSTITUTION
Sunday, June 24, 2007
Home is where the heart is and, these days, it has a measurable pulse.
Just as cars have evolved into rolling chambers of comfort and entertainment, homes of every type are increasingly linked to remote command systems, programmable schedules and centralized control.
And now with home sales slumping, housing professionals are touting high-tech options as the next selling tool.
Everything from entertainment options such as music, television or movies to basic comforts such as air conditioning and lights can be linked to a central command center that allows a homeowner to program domestic life.
It’s important to note that in both articles the automation technology is described as an upgrade chosen by the home buyer. This way the builders take no risk by only incurring the cost of the equipment when the buyer is willing to pay for it. It makes sense with the volumes and the pricing schemes (and option/add-on model) used by large builders.
My question – when will we start seeing home automation features included in more custom homes? Today 5.1 surround sound, security systems, and high-end appliances are standard. Home audio distribution is becoming more common as well. But what about automated lighting and thermostat control? Or internet-security system integration?
Of course, the critical factor is the cost and installation complexity of the automation system. Builders and developers can rarely afford to take the risk of including costly features that buyers may not value. Until home automation systems are cheaper (probably <%1-2% of construction budget) and more plug-and-play they won't be justifiable on small projects.
Will this stop me? Not entirely, but it will slow me down. The wisest thing for a reasonable gadget freak to do is to install as much wiring as his future system may need. This is a cost effective way to keep our options open. With the wires in the walls further automation technology can be added whenever it is prudent.
What do you think? Would home automation features sway your home buying decision at all?
Here are a few links about home remodel ROI for your reference:
