Smart Home Features Part 3 of 3: ROI recommendations based on home type and market

Hello and welcome to Part 3 of 3. It would be unwise of me to suggest that these recommendations apply to all markets but as a general rule of thumb these are the top considerations in all markets. However, homebuyer and sellers should not discount the importance of market trends, buyer demographics, and location.


IN BRIEF 

đź’ˇ Recommendations Based on Home Type & Market

For Starter & Mid-Range Homes ($200K–$600K)

  • Best ROI Features:

    ✅ Smart security (locks, cameras, doorbells)
    ✅ Smart thermostat
    ✅ Smart lighting
    ✅ Whole-home automation (basic)

  • Avoid/Not a priority for many homebuyers in this category: Smart appliances, advanced home theaters.

For Luxury Homes ($700K+)

  • Best ROI Features:
    ✅ High-end security (AI cameras, biometric locks)
    ✅ Whole-home automation (integrated with lighting, blinds, HVAC)
    ✅ EV charging stations
    ✅ Smart kitchen & laundry appliances
    ✅ Smart theater & entertainment systems

  • Avoid: Lower-cost smart gadgets that don’t match up well to the luxury experience.

🏆 Final Verdict: Smart Features with the Best Resale Value

1️⃣ Smart Security (Locks, Cameras, Alarms) – High ROI in all markets
2️⃣ Smart Thermostats – Energy savings, strong buyer demand
3️⃣ Smart Lighting – Affordable and universally appealing
4️⃣ Whole-Home Automation – Strong appeal in tech-friendly and luxury markets
5️⃣ EV Chargers – High ROI in eco-conscious, EV-heavy markets


IN DETAIL 

🏡 High-Value Smart Home Features for Most Markets:

1. Smart Security Systems (Top ROI Feature)

  • Why? Homebuyers typically prioritize safety, which in turn increase the potential for profit on the resale side. 
  • Best Features:
    • Smart locks (e.g., August, Schlage Encode)
    • Video doorbells (e.g., Ring, Nest Hello)
    • AI-powered security cameras (e.g., Arlo, Eufy)
    • Monitored alarm systems (e.g., SimpliSafe, ADT)
  • Value Boost: Increased buyer confidence PLUS better home insurance rates.

2. Smart Thermostats (Energy Savings & Appeal)

  • Why? Buyers love energy efficiency PLUS smart thermostats cut utility bills.
  • Best Options:
    • Nest Learning Thermostat
    • Ecobee SmartThermostat (Top rated by PC Magazine)
  • Value Boost: Energy savings of up to 10% to 15% annually; strong ROI at a relatively low cost ($200-$250).

3. Smart Lighting (Convenience & Energy Efficiency)

  • Why? Enhances ambiance, security, and energy efficiency.
  • Best Features:
    • Smart dimmable LED lights (e.g., Philips Hue, LIFX)
    • Motion-activated outdoor lighting (e.g., Ring Floodlight Cam)
    • Voice-controlled lighting via Alexa, Google Assistant, or Apple HomeKit
  • Value Boost: Higher perceived home value + lower electricity bills

4. Whole-Home Automation Systems (Luxury Appeal)

  • Why? Buyers in this category typically appreciate seamless control of their home via a single app or voice assistant.
  • Best Options:
    • Google Home, Amazon Alexa, or Apple HomeKit integrations
    • SmartThings or Hubitat for full-home automation
  • Value Boost: Appeals to tech-savvy buyers, adds convenience and future-proofing.

5. Smart Irrigation Systems (Great for Warmer Climates)

  • Why? Saves water and reduces maintenance time.
  • Best Options:
    • Rachio Smart Sprinkler Controller
    • Orbit B-hyve Smart Hose Faucet Timer
  • Value Boost: Lower water bills PLUS strong attractive selling point for drought-prone areas.

đź“Ť Smart Home Features with Varying ROI Based on Market:

6. Smart Appliances (Luxury Markets & High-End Homes)

  • Why? Adds convenience, but ROI depends on market demand.
  • Best Features:
    • Smart refrigerators (Samsung Family Hub, LG InstaView)
    • Smart ovens & dishwashers (GE Profile, Bosch Home Connect)
    • Smart laundry (LG ThinQ, Whirlpool Smart Front Load)
  • Value Boost: Luxury buyers love them, but mid-range buyers may not see them as necessary.

7. EV Charging Stations (High ROI in Urban/Suburban Areas)

  • Why? More homebuyers own EVs, and a built-in charger is a great selling point.
  • Best Options:
    • Tesla Wall Connector
    • ChargePoint Home Flex
  • Value Boost: Higher appeal in markets with strong EV adoption (California, Colorado, Washington, etc.).

8. Smart Entertainment & Home Theater (Best for High-End Buyers)

  • Why? Great for luxury homes but may not be necessary for mid-range properties.
  • Best Features: Smart projectors with automation (e.g., Epson, BenQ)
    • Multi-room audio (Sonos, Bose)
    • Voice-controlled smart TVs (Samsung Frame, LG OLED)
  • Value Boost: Luxury appeal, but only a strong ROI in high-end real estate.
____________________________________________________________________________

FINAL THOUGHTS 

Staying on top of technology is no easy feat and with that being said it's a delicate balancing act for homebuyers and sellers alike. At the center of it all there is a need to come up with a sustainable solution, one that benefits the overall at both ends of the spectrum, not just in terms of the return on investment but also in regard to the investment of time and effort. I hope you found this breakdown helpful and on a final note it will be interesting to see what new tech we will be looking at five, ten, twenty years from now.  


As always, thank you for reading and feel free to comment or like the post...



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