HA and home resale value... Will an HA system increase my homes value at all?

[etc6849]

I know what my wife's thoughts are on the subject , but I'm curious what you guys think and your experiences. I'm new to home ownership, but have turned into an HA junkie over the year so I'm adding a lot of permanent HA stuff to the home that I don't plan to take with me when I move.

I've installed a large zwave lighting system in most of my home (Leviton Vizia RF+) at a cost of about $1700.

I'm working on a large Elk M1G installation at a cost of about $2100 (includes other non Elk stuff too such as a second 42" wiring box, UPS, etc...).

My home is a nice 4 bed + bonus, 2650 sq ft, but it's nothing all that fancy. It may very well not be the type of home people demand having an HA system in (i.e. it's never going to be a $600k+ home).

I plan to add other things such as a dstributed audio system, intercom etc... The home is/will be controlled primarily by Premise running on a mini-ITX PC, but I plan to buy stuff that's standalone or compatible with the Elk M1G. When I move out, I'll take the Premise server with me since I doubt anyone local could ever work on it. Or should I leave the Premise server as it adds great functionality?

I did get a good deal on the home as it was a Fannie Mae foreclosure in SC and built in 2006. Assuming housing prices stay flat, will my homes value increase due to the HA stuff? I'm thinking I'll probably only get back 50%-75% of what I put in (since my labor is free)?

 

[electron]

To the right people (a family with a father who loves toys/home automation looking for a new home, or someone who wants to go green and have dimmers everywhere), it might increase its value, but in general, I think all it will do is make your house stand out a little bit more (which is a good thing).

 

[JonW]

As Dan said, it adds value to the right person. I think part of the problem right now with technology that is added to a home is that the appraisers do not know how to add/compensate for these items. This has been true for structured wiring systems, home automations systems and even solar systems. There has been a big push in the last couple of years to get appraisers up to speed with the technologies so that they can properly factor them into the home value. Going forward, it is possible that these items could be considered in the home valuation.

 

[timbre]

As Dan said, it adds value to the right person. I think part of the problem right now with technology that is added to a home is that the appraisers do not know how to add/compensate for these items. This has been true for structured wiring systems, home automations systems and even solar systems. There has been a big push in the last couple of years to get appraisers up to speed with the technologies so that they can properly factor them into the home value. Going forward, it is possible that these items could be considered in the home valuation.

My wife is a realtor. This dosen't help me any as I try to automate our home.

In her eyes and it seems like in the eyes of the industry, home automation is a cool gimick. HA will add the 'POP' to your house to help it sell faster, but won't necessarily make it sell for more.

Just like computers, HA is outdated almost as soon as you install it. Think back three years ago to the technology that was present and how we were wiring our houses... Wireless was the cool thing and everyone wanted everything to run wirelessly. Now as I get ready to re-wire my entire house I am thinking of every place to put a wired connection becasue I want the reliabilty and speed of the hardwire.

A potential home buyer dosen't care how many miles of cable you have buried in your walls, or how big your media closet is. All they see unless they are specifically looking for that is more hassle. more things to go wrong. What happens when a lutron switch gives out or for some reason all of your programming on your x10 dimmers goes away. How are they going to fix it? It's going to cost a ton more money to fix the system than it ever did to install it.

I have a friend who is a installer. He is currently working on a job where the previous owner of the house took all of his structured media components and left blank holes with wire. Problem is nobody know exactly what he had in there. They are guessing based on what wire is run and the size of the speaker holes. It is costing the new owner a ton of money to retrofit the system to what was previously installed. Not a benifit at all.

 

[Neurorad]

I hope to be in my current home 20 years, I seriously doubt it will have a positive effect on resale valuation. I'm installing stuff because it's enjoyable, for me, now.

 

[pbeaulieu]

I think if you use standard items that can be serviced by local businesses then it will not detract from the sale of the house. However, if a potential buyer feels that it will be a hassle getting if fixed when it breaks then it could actually be a negative for that buyer.

I look at it like buying a house. I did not buy it as an investment. I bought it to live in it because I like living in a house. I view HA the same. I do it because I enjoy it.

 

[JMJTN615]

I hope to be in my current home 20 years, I seriously doubt it will have a positive effect on resale valuation. I'm installing stuff because it's enjoyable, for me, now.

And that's why I do most of the things I do around the house. Plus, HA can be very personal. It enhances a particular lifestyle (if done well). For someone else, it would probably feel useless or even constricting. If you are going to be in your house for years, buy it because it is useful or fun. If you are going to sell quickly, do things that can be uninstalled and patched over. Think about how you would react to a 1970's era intercom system in a house today (other than thinking about how to reuse the wiring).

 

[pete_c]

When I sold my home a few years back to move in my current all I left (automation "stuff") was the alarm panel with TTS and the manual. I was utilizing X10 switches everywhere at the time and removed them replacing them with conventional switches.

I don't believe that helped sell the house.

 

[drozwood90]

I think if you use standard items that can be serviced by local businesses then it will not detract from the sale of the house. However, if a potential buyer feels that it will be a hassle getting if fixed when it breaks then it could actually be a negative for that buyer.

I look at it like buying a house. I did not buy it as an investment. I bought it to live in it because I like living in a house. I view HA the same. I do it because I enjoy it.

+1

Although, most of my stuff should be able to be pulled and come with me.

When I get to hardwire the door / window sensors, I'll probably just leave all that stuff. For my windows, I'll probably end up just wireless...just too hard to retrofit wired sensors without too much cutting in the drywall. at least for my taste...

--Dan

 

[apostolakisl]

I think the security system will be well received by any buyer. I think the rest of the stuff will at best not devalue your house and at worst might discourage some buyers. If the right person wanders into your house, it could close the deal, but I think the odds are that for every one of those people therer are probably 20 who are scared off by it. When I sell my house (probably in a very long time), I expect to pull all of the automatic outlets, switches, etc and put the normal back in. Who knows, though, in 20 years maybe all of this HA stuff is the norm.

 

[Digger]

I think the security system will be well received by any buyer. I think the rest of the stuff will at best not devalue your house and at worst might discourage some buyers. If the right person wanders into your house, it could close the deal, but I think the odds are that for every one of those people therer are probably 20 who are scared off by it. When I sell my house (probably in a very long time), I expect to pull all of the automatic outlets, switches, etc and put the normal back in. Who knows, though, in 20 years maybe all of this HA stuff is the norm.

My thoughts as well. I was a Real Estate Agent for a few years and I think many people would be scared away by the automation I have (they would think its cool but would be intimidated by it and not want the worries of maintaining it even though there is very little actual maintenence with what I have).

 

[etc6849]

I agree with the posts here; it's kind of what I thought, but needed to hear it I guess I'll probably end up pulling out most of the stuff out.

I do look at buying a home as an investment, but not HA as it's for enjoyment. The only reason I bought a home is because I calculated the breakeven point on renting a similar space and it was in my favor to buy. At 3.5% on a 15 year fixed loan, how could you not buy if you have the down payment? Who knows, in seven years, I may just rent the place out as I think it would easily cover the loan payment.

 

[pete_c]

BTW Congratulations on your new home!

 

[drvnbysound]

Just a thought.. assuming most DIYers enjoy the work anyway

If you installed everything as a DIY-er and know the ins/outs of the system, you can always let the buyers know that and tell them that they can consult you if things go wrong - and even setup payment details so you can get compensated for your time. Knowing that may not add value to the bottom line of the sales price, but could add a lot of value to the buyer. Personally, if I spent a lot of time setting it up and installing the equipment I would want any future owner to be able to enjoy the HA experience as I intended it to be installed.

 

[tmbrown97]

I'll treat the house the same way I do the cars... I pull out all the fancy stereos, bluetooth adapters, ipod kits, etc. when I sell them and put them as close to stock as possible; though I may leave a security system.

The house is the same way - I'll pull my lightswitches and most of the elk add-ons, and leave just the basic panel (hopefully there'll be a new panel to upgrade to by then!) - and if 8 years from now, Elk *still* hasn't come out with a new panel, I'd probably replace with an EZ8 and take my M1G with me... leaving only the basic security and keypads. Then again, I'd leave documentation showing what all the house is prepped/wired for and capable of.

Also - most new buyers would feel really weird about the previous owner coming around for anything - it's kinda like hanging out with your wife's Ex - some people can, but usually you just don't want the weirdness. Find a reputable installer and refer them to that person.