Can Smart Home Wiring Increase the House Value?

Smart home wiring combines several electronic household systems.

Every modern home makes use of technology in some way, whether it's electrical wiring, high efficiency materials or cable and Internet connectivity. Smart home wiring refers to the process of wiring a home to take full advantage of the latest electronic and automated home systems. Despite the initial costs, smart home wiring can add to your home's resale value or provide an up-front value that saves you money in the long run.

Benefits

Smart home wiring can increase the value of your home in a number of ways. It allows you to take advantage of features that save energy and, consequently, cut down on home utility bills. For example, an automated home with smart wiring can use a timer to reduce the heat or air conditioning used overnight before returning your home to your chosen temperature before you wake up. In addition, smart home wiring prepares your home for installing a security system, intercom, entertainment network and other convenient automated features such as lighting.

Factors

The amount of value that smart home wiring adds to your house depends on many factors, some of which are out of your control. Rising energy costs increase the value of energy-saving features such as automated climate control and lighting. The housing market and mortgage interest rates affect how much buyers can afford, which may reduce the market for your smart house. Affluent buyers are more likely to see smart home wiring as an advantage, which reduces the value of installing it in a home in a depressed neighborhood.

The local cost and availability of systems that connect to smart wiring also have an effect. For example, if you live in a region where several companies offer affordable intercoms and security systems, buyers will be more likely to pay more for a home with smart wiring than they would if there were limited options for taking advantage of the home's wiring.

Prewiring

Installing smart home wiring during initial construction or renovation is the best and most cost-effective way to build a smart house. Retrofitting a home for smart wiring involves accessing the spaces inside walls, which is time-intensive and obtrusive. According to wiring installer Smart Wired, initial costs for smart wiring start at around $2,000, as of 2010. If you can roll this amount into your mortgage, you'll add value to your home by preventing future owners from needing to pay for a more costly retrofitting, even if you never take advantage of the smart wiring yourself.

Considerations

Ultimately the value that smart home wiring adds to your house depends on what buyers are willing and able to pay. One major factor is the growth of smart home wiring in new home building. If buyers consider your home at a point in the future when many newer homes have smart wiring, not having a system installed may work against you. Likewise, tech-savvy buyers are more likely to pay extra for a home with smart wiring than buyers who are uncomfortable with technology or can't afford to install entertainment, computer and security systems that will take advantage of it.

References

• Park Place Installations: Smart House
• Smart Wired: FAQs