Is It Worth Making Your Home A Smart Home Before You Sell

Smart homes seem to be all the rage. Thermostats and lights controlled by your smart phone. Refrigerators that send you a grocery list to your phone.

There is so much more that you can have to make your home automated and running from an app or apps on your phone. So is it worth it to make your home a smart home before you sell? Probably not.

Unexpected

With the exception of “techy towns” like Niwot and Boulder, or some types of executive homes, most buyers, even high end buyers, won’t expect to find smart homes. They may not even have a need or desire for a smart homes or they may not want the level of it you have installed.

As with other improvements to your home, you need to weigh the cost against the expected return

Having your home wired to be a smart home, buying the equipment, updating to smart appliances and all that entails, including fixing walls that will need to be cut into for wiring and new plugs and such, will run you thousands of dollars. The return on that isn’t going to be thousands of dollars.

Ask your Realtor

If you aren’t sure whether to do it or how far to go, ask your Realtor. They know the market, who will be looking at your home and how much they will be willing to pay to have those kinds of updates. Remember, a million dollar home may benefit from it, but a hundred thousand dollar home probably won’t.

A trap

Don’t fall into a trap of spending money for a return you won’t see. Talk to your Realtor and see what will help sell your home and spend it there.

Why The Market Determines The Price of Your Home, Not Your Realtor

If you’ve ever sold a house, you know that pricing it is mysterious. Did you know that while it seems that your Realtor pulls the price out of the air, he
Why The Market Determines The Price of Your Home, Not Your Realtoror she doesn’t? Your Realtor doesn’t determine price, the market does. A good Realtor just knows how to use the market to price your home. They use something called comparable sales.

Comparable sales

Comparable sales or market comparison, shortened to comparables in the real estate business, are recent sales of homes that are similar to yours. It’s a method that is used by professional, licensed real estate appraisers for appraising single-family houses. It uses actual sales amounts for recent sales, not things like cost to replace the home, tax assessment values, similar listings, what it sold for when you bought it or what your neighbor says they think its worth.

Comparable sales may or may not be in your neighborhood. Unless you live in a cookie cutter neighborhood, where every house is the same size, values will be all over the map. Your 1500 square foot home on a half acre may be sitting next to a 2000 square foot house on an acre, or next to an 800 square foot bungalow on a tiny lot. Your house may be updated to the nines, but your neighbor two doors down may not have touched their home in 25 years.

Use homes that sold in the last 6 months

You should only use homes that sold in the last 6 months, in similar neighborhoods and close to yours. The homes compared should be similar in age (within about 5 years), size (within 300 square feet) and lot size. A comparable should be in the same area, but not necessarily the same neighborhood. Then check their past listing information to see if the home is as updated as yours, more or less. Then you can go through the process of figuring out the price per square foot of each similar home and use the average to find out the price per square foot of your own.

Appraiser

Or you can hire a professional to do it for you. An appraiser can provide the same comparable information for you… for a price. Your best bet is to ask a Realtor. They have access to the information and know how to get to a fair market price for your home.