Nearly half of all consumers surveyed say that smart home technology is a feature they look for in their next home purchase. This, in and of itself, is a reason for home builders to start harnessing the power of smart home technologies.
There are already 37.5 million smart homes in the U.S. That number is projected to double over the next few years. That means that construction companies cannot avoid the smart home drive.
The average home-buyer visits ten houses before deciding on which one makes the best fit. If this person has the desire for technology to make life easier, what type of home are they most apt to choose?
For contractors as well, smart homes can attract a 5% premium over non-smart homes. In a Coldwell Banker Real Estate Survey, 81% of those questioned said the presence of smart devices in a home make it a more attractive purchase. Among the younger generation, almost three-quarters of those questioned said they would willingly pay a premium of thousands for a home that is connected with smart technologies.
What is the best approach and how do you scale?
How Home Builders Go Wrong with Smart Home Technology
It’s easy for construction companies with little knowledge of domotics to step in and try to build unprepared. This causes expenses to soar and can end up killing the bottom line profits.
How do they go wrong?
If you want to avoid wasting time and money, including:
- Interoperability of devices
- The need for a home hub
- Type of control
- Level of user input required
- Scope of automation available
You must first plan out what you want to accomplish. Remember the saying “if you fail to plan, you plan to fail”?
What is the Purpose of Smart Home Technology
- Do you want to make life easier?
- Is security the primary concern?
- How comfortable are you with technology?
All these questions are vital for consumers looking to build out a new smart home. For home builders, this planning is much more critical.
This, sadly, is where many builders have gone astray. Popping a random smart lock and a thermostat in place is unlikely to enhance desirability or value.
At bare minimum, a home designed with connectivity in mind needs to come with a hub since functionality without one is limited.
Why is it Easier for Home Builders to Implement Smart Home Technology?
You need to give customers what they want. Don’t and they’ll go somewhere else.
Smart Home Technology Makes It More Likely to Impact House Prices
Voice control is now so commonplace as to be almost expected.
Smart home devices are no longer a novelty and integration continues as the automated home becomes the rule, not the exception.
Since smart home technologies have entered the mainstream desires, buyers have begun placing a premium on connected homes. Install this technology and consumers will pay more.
Since connected homes tend to be much more attractive, they don’t just fetch higher prices, they tend to sell quicker as well.
Technology Is Not As Expensive As It Used To Be
The popularity of smart devices means more competition and lower prices for home builders purchasing the technology. If you can buy in bulk, you can get an even better deal on already low prices.
Options for Professional Installation Are Widening
Rather than needing existing contractors to try installing unfamiliar devices at a sluggish pace, contractors can now get a done-for-you solution. This makes automating new homes scalable.
Effective Ways For Home Builders to Employ Smart Home Technology
What Consumers Don’t Want
An ADT survey showed that many highly hyped smart appliances come low on the average consumer’s list. Smart refrigerators, ovens and cleaning devices come near the bottom of the list. As a builder, this is advantageous as those tend to be the more expensive items.
The basics like smart light bulbs or smart plugs really don’t do much to boost value either so it’s better to pass those up.
What Consumers Want
The two biggest things consumers report that they want are convenience and improved security. Add energy-efficiency and energy monitoring and prospective buyers have exactly what they need.
Here are eight ways for home builders to see houses spend less time on the market while attracting higher prices:
- Automated Window Shades
- Smart Mirrors
- Connected Garage Doors
- Entry Systems
- Covert Security Cameras
- Solar Roof Panels
- Climate Control
- Smoke and Leak Detectors
1) Automated Window Shades
Although automated drapery and window shades are now mass-market, you still don’t see them in many in smart homes.
This, though, is why it makes sense for contractors to include them. Not only do they make a statement when buyers look at a property, it provides consumers with something they want, but generally don’t want to buy themselves.
2) Smart Mirrors
From wardrobe assistance to hidden TVs and smart shaving mirrors, there’s a wealth of choice for home builders looking to add some touches of elegance to a home without spending a fortune.
3) Connected Garage Doors
Automated garage doors perform two key functions. They simplify life when returning home after a busy day. They also send alerts in the event of the garage door being broken into. They can help protect your car along with any valuables stored in the garage.
4) Entry Systems
Automated door locks, by themselves, are unimpressive. However, combined with other technologies, they can be a very attractive addition. Video doorbells are incredibly popular. If a home builder automates the entry system of a home, buyers get a strong first impression which can then be compounded with further devices throughout the home.
5) Covert Security Cameras
Covert security cameras resembling traditional porch lights are a great and cost-effective way for builders to throw in an extra layer of security that will likely be welcomed by anyone looking to buy the house.
6) Solar Roof Panels
Combined with effective insulation, solar panels can serve to dramatically reduce electricity bills, while also playing their part in helping the environment.
7) Climate Control
The classic smart thermostat is going to be welcomed. Builders can also consider adding in air duct dampers and zone controllers to further optimize heating and cooling systems.
8) Smoke and Leak Detectors
Last is another potentially life-saving addition in the form of smoke and carbon monoxide detectors. Also, water leak detectors are devices that buyers might think twice about buying, but could literally make the difference between life and death.