Can Smart Home Upgrades Increase Your Home’s Resale Value?
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Many people say moving to a new home Planning to Buy a House? Use Online Maps to Find the Perfect Location Planning to Buy a House? Use Online Maps to Find the Perfect Location They say that moving house is one of the most stressful things that you can do. One way to alleviate some of the pressure is to use online maps to survey potential locations. Read More is one of the most stressful things in life. But according to the Holmes and Rahe stress scale, that’s not strictly true. It’s not even in the top 30 most stressful events.

So if you’re about to move homes, relax. Just focus on getting as much money for your property as possible. Fortunately, there are lots of ways to add value to your home—even simple things like landscaping can add thousands of dollars.

But can tech also play a part? Can smart home upgrades increase your home’s resale value? Let’s take a closer look.

The Pros of Installing Smart Home Devices for Resale

Let’s consider some of the less tangible arguments about installing smart home devices before selling your home.

For many people, smart home technology provides an instant “wow” factor. In the same way that smart home tech can impress your friends, it can also influence prospective buyers.

Imagine how enthralled most people would be with something as simple as a house-wide wireless speaker system or smart lighting setup. Ultimately, smart homes are cool.

Furthermore, depending on where you live, there might be a growing expectation among buyers that homes should have smart devices.

In the same way that you wouldn’t buy a home without a web connection or running water, in a few years’ time, you might feel the same way about smart security systems How Smart Home Security Systems Save Money and Keep You Safe How Smart Home Security Systems Save Money and Keep You Safe Customization smart home security systems can protect you and your family and give you control over exactly how you want to secure your home, for a fraction of the price of traditional security systems. Read More and garage door openers 4 Ways a Smart Garage Door Opener Will Simplify Your Life 4 Ways a Smart Garage Door Opener Will Simplify Your Life Garages are great, garage doors are frustrating. Smart garage door openers can help. Read More . Having the devices might not add value to your home, but not having them could decrease its value.

Lastly, setting up a complete smart home is expensive and time-consuming. Even if they have an interest in smart home technology, a lot of people don’t have the time or money to start buying and installing endless devices. A ready-made smart home will appeal to those buyers.

The Cons of Installing Smart Home Devices for Resale

Smart home devices aren’t guaranteed selling points. There are a few circumstances where they could work against you.

For example, what happens if the interested party is not technologically literate? Or at the very least, has no interest in using tech to perform mundane tasks like turning on lights on or arming an alarm? The presence of excessive technology in the home could be a significant turn-off.

Similarly, problems could arise if the owner-to-be has a lot of smart home devices that they’re bringing with them. If their devices are of a higher quality than yours, seeing “cheap” or “dated” gadgets around the home might also be a turn-off.

Finally, the new owner might not have the right devices to use your gadgets. For example, if you’ve installed proprietary hardware that can only be accessed through an iOS app, but the new person uses Android, there will be difficulties.

smart home upgrades increase resale value
Image Credit: macrovector/Depositphotos

Which Devices Should You Install?

Broadly speaking: the more impressive the device, the more reason to install it.

If you really want to make a difference to your home’s value, you need to think big. For example, solar panels offer cutting edge technology, they’re environmentally friendly, and they’ll save you money on your electricity bill 12 Solar-Powered Products to Help You Reduce Your Power Bill 12 Solar-Powered Products to Help You Reduce Your Power Bill These 12 solar powered devices for home and personal use will help reduce your power bill and your reliance on fossil fuels, ever so slightly. Read More . They’re an instant selling point for a buyer.

The same thing applies to many other devices that are on the cusp of becoming mainstream 10 Future Technologies You'll See In Your Home in 3 Years 10 Future Technologies You'll See In Your Home in 3 Years What technology do experts think you'll have in your house by the turn of the decade? I'm going to walk you through a typical day in the smart home of the future. Read More . You will probably be using several of them in the coming years; installing them ahead of time will reap dividends.

Examples include paving that generates power when walked or driven upon, robotic kitchen assistants, and smart mirrors that’ll recommend outfits and hairstyles based on the weather or current trends.

Which Devices Shouldn’t You Install?

At the other end of the scale, you shouldn’t expect to install a few Philips Hue lights and a smart security camera and suddenly add thousands to your home’s value. Many such devices don’t cost more than a few hundred dollars; a buyer isn’t going to pay extra for them.

Even slightly fancier equipment such as a built-in whole-of-house Sonos system isn’t going to add thousands, but it will have more impact than tech that relies on hubs and apps to perform routine tasks.

Also, remember not to install gadgets based on your personal preferences. While you might think smart locks provide time-saving benefits Everything You Need to Know Before Installing a Smart Lock Everything You Need to Know Before Installing a Smart Lock Smart locks are increasing in popularity, but there are still a lot of valid concerns about their security. These are the facts you need to know before making a purchase! Read More , buyers might look at one and see security issues and technical complications.

Instead, focus on devices that offer something tangible to a buyer—and remember that tangible benefits almost always come back to money.

Take Your Smart Home With You

You don’t have to leave your smart home. Sure, you’re unlikely to take solar panels or an electricity-generating driveway with you to your new home, but you can easily take many of your unfixed gadgets like smart lights and security cameras.

Given such devices only have a negligible impact on the value of your property, it might even save you money to take everything with you. You won’t need to buy everything as new for a second time.

Before Leaving Home

Finally, if you are selling a fully loaded smart home, you need to take some precautions before handing over the keys.

Make sure you delete any passwords, usernames, and personal information from your devices. Often, this entails performing a factory reset.

Also, remember to revoke any permissions that the gadgets have with other apps. For example, maybe your Philips Hue system is connected to your Google and IFTTT accounts, or perhaps your smart speakers are linked to your TV.

Bottom line: If you’re leaving any tech behind, you need to remove any trace of a connection between the old gadgets and your digital life.

Have You Sold a Smart Home?

In an article like this, it’s impossible for us to turn around and give you expected returns and discuss how much a particular device could affect your home’s value. There are too many brands and too many variables for us to be accurate.

Just be aware that these things often have a cumulative compounding effect. A home with smart lights and a smart alarm and smart cameras and a smart garage door opener and smart outdoor tech and some impressive big ticket smart home items will enjoy a greater rise in value than the sum of its parts.

Explore more about: Home Automation, Home Improvement, Personal Finance.

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  1. dragonmouth
    February 15, 2018 at 7:52 pm

    I have sold a couple of houses and have learned that when selling a house, less is more. It is a truism that you never recover the money you spend on improving a house for sale. It is a waste of money to go out of your way to make a house attractive. Just the basics will do. Home buyers want to make a house they buy their own in more than just the title. Your idea of what the house should look like probably will not agree with the buyer's idea. When selling the first house, I heard comments like "I don't like the colors", "I don't like the rugs", "I'm going to have to change the paneling", etc.

    In the second house all the interior was ripped out down to the studs and replaced with everything new. While I had the walls open, I had the contractor install Ethernet cabling throughout the house. The prospective buyers were totally underwhelmed. Instead it was "Oh, but I want granite counter tops", "The appliance color doesn't match my eyes" and similar dumb comments. The house was in move-in condition. All the buyers had to do was bring in the furniture. But to listen to the comments, one would think that the house was ready to collapse.

    At the present time the vast majority of home buyers in most areas don't give a damn about a house with smart devices or fancy technology. To them it is all extra stuff to maintain.