One of the most persistent concerns modern home builders must juggle is how to maintain profit margins while also providing the best craftsmanship. Achieving that sometimes is straightforward: control expenses and run projects smoothly. At the bottom line, something like smart home upgrades might be easy to dismiss as a cuttable cost. But many builders are actually finding that in the big picture, smart home options add a lot of value at a minimal additional cost.
It wasn't long ago that including even a single piece of connected technology in a home set a builder apart from the competition. That's not the case today. According to Statista, smart home products will be in use in over 40% of households by the end of 2021, and well over half — some 77 million homes — will have them by the end of 2025. The market is rapidly reaching a point where smart features are expected to be part of a new-home build.
Adding in smart home upgrades while keeping your bottom line in sight isn't hard to tackle. Here are four starting points:
Take small steps
For builders hesitant to embrace smart home value, even trying one or two things as a test run can deliver buyers a sense of innovation and reassure them that their home — the biggest purchase many of them will ever make — has been designed with future-proofing in mind.
One easy entry point is smart appliances. Even as standalones, consider the appeal of a touch-screen refrigerator that not only helps a homebuyer track what's inside but lets them check it while on the go or a dryer that automatically senses the optimal time and temperature for clothes. By choosing pieces that are Wi-Fi-ready and smartphone-compatible, you're setting up the homeowner to take a greater advantage of integration later. For example, Samsung's SmartWasher gives people the freedom to start a load of laundry from anywhere by phone and notifies them when it's done. And the FamilyHub system provides a central controller for appliances on top of working with entertainment and calendar apps and even mirroring the TV.
Next thing you know, you'll be ready to combine this smart appliance functionality with more items to deliver truly connected living — reassuring homeowners they can check who's at the door without getting up or set the lights and sound for movie night with a tap. You can lean into the SmartThings app, which is designed to bring together hundreds of compatible house-based devices — from thermostats and locks to security cameras and voice assistants — for one simplified experience. In the end, presenting a buyer with a move-in-ready smart home by thoughtfully selecting technology during the build shows them you're invested in how they'll use the space for years to come.
Offer upgrades that reduce long-term expenses
There's no question that smart devices are (usually marginally) more expensive than their traditional cousins. But that added cost can both dramatically boost the buyer's perceived value of the home with the potential for future connectivity, as noted above, as well as lower post-build costs. For example, many smart appliances feature advanced warnings for maintenance concerns and user-friendly remote diagnostics. That means a buyer is better equipped to handle issues themselves or route their smart appliance service directly to the manufacturer. It makes for a streamlined experience for the buyer and fewer warranty calls for builders to deal with.
One caution is that it's important to be clear with the buyer about who will be responsible for tech upgrades and service for smart devices after they've bought the home. The National Association of Home Builders provides additional information on this point.
Use knowledgeable subcontractors
While the basic steps of integrating smart home upgrades are straightforward, they must still be done with diligence. Select reputable brands and distributors and be sure to factor in schedule adjustments for large-scale upgrades. While many in the business try to get their existing contractors to expand into smart home installations, others opt to reach out to new partners. Either way, it's essential to vet a smart home installer just as thoroughly as a tile or roofing contractor.
For customer-facing service on the devices, it can be profitable to partner with tech companies such as Amazon or Google. They're highly motivated to connect with new homeowners, and programs like Amazon's Smart Home Services can handle training buyers on how to use their new home's devices rather than the builder or subcontractor.
Upgrade your sales pitch
Offering smart home options is a great way to boost value, but be ready to make the case to buyers that this additional technology justifies a price increase. Sure, there is a "sizzle" to it all, but smart technology goes beyond bells and whistles: It adds genuine value to a homeowner's quality of life.
Whether your prospective buyers are millennials, families on the go, or older folks, they're all looking for ways their homes can give them a bit more freedom to enjoy their lifestyles. Being able to check the grocery list when you're already at the store, getting a reminder right when the washer finishes its perfectly calculated cycle, or finding out with a tap on your phone if you really remembered to turn the oven off are, indeed, luxuries. But technology has made them affordable and attainable ones that save people time, energy, and money and let them get on with the activities they really want to be doing. Balance both the products' inevitable trendiness as well as their practical benefits when appealing to homebuyers.
The variety of smart home upgrades seems boundless these days, and it's likely to just keep growing. Builders who get into offering these products are molding their mindset for the future and will quickly figure out what adds value while still keeping things profitable. Ultimately, providing smart home options should appeal to a growing majority of modern homebuyers while serving to boost your selling velocity as well.