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Home's Connectivity Not Yet Connected To Value

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Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Yeah, that's about right.

Did you go on to read the info at this link:

http://www.realtytimes.com/rtnews/rtcpages...5_connected.htm

Most consumers, however, continue to resist the connected home. Fifty-eight percent expressed neutral or negative reactions to the concept and many view the connected home as connecting them to work they'd like to leave at the office.
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
<span style='color:brown'>The added value they talk about is 1% or less of the value of the house. That, to me, is not that significant an issue, and with the pace of tech advancement the way it is, what is connected today will be archaic tomorrow. It might be "sizzle" but I don't think it is steak, at least not yet.

And if the trends continue, I would imagine being connected is about as "value adding" as having telephone connections or cable connections......you might delete for obsolescence, but you probably would not add to the value.</span>
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
The one thing they are not discussing is that with the pace of technology goes. Sooner or later everything will be wireless. The only cable coming into a house will be the electricity. So then this conectivity won't matter. Take right now for example I don't even have a house phone just a cell phone and I know about 5 friends of mine that are in the same boat.

Ryan
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Virtually every new home I do is prewired with CAT 5 cabling. However, excessive "connectivity" and "smart homes" does not return the investment. They had one of the first "smart" homes, where the computer drove everything. He spent in excess of $30,000 by being the first. Now, all of that is obsolete as you can replace a standard switch or plug outlet with a "smart" outlet and drive the home by a laptop that plugs into the wall socket.

IMHO, the cost will not generate a return due to obsolescence. 18 months and the costs are 75% lower, work much faster and better, and are what the new buyer would want.

Roger
 

BigBlueGA

Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
Ouch.. VERY good point..
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
That would make connectivity kind of like an above ground pool. No one is going to make a thirty year loan on something that will only last two years.
 
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