Unlocking Profit Potential: Selecting Smart Tech for House Flipping Success
How do you make a home more desirable to potential buyers? In today’s market, the answer is smart technology. Research shows that 70% of homebuyers are actively looking for a smart home, and 78% are willing to pay more for a home with smart devices.
The key to making your flip more profitable using smart technology is to understand your target market and include the smart devices they are most likely to value.
Here are some of the steps you can take to include smart devices in your flip profitably.
Photo by Sebastian Scholz (Nuki) on Unsplash
Know What Devices Add Value
There are so many options for homes when it comes to the Internet of Things (IoT) that it can be overwhelming. You can narrow things down by thinking carefully about what smart devices homeowners value most.
As you consider your target market, make sure you deeply understand your ideal buyer. This will help you decide which smart home devices will add the most to the price of the home vs. which ones are nice to have but won’t bring an increase in sale price.
If you’re selling in a neighborhood of older homeowners, for example, make sure the smart devices are easy to use, intuitive, and feature large displays. Younger buyers may be more excited by being able to centralize all the smart devices within a single app on their phone or may be willing to embrace more complex technology.
In the study referenced above, the most desirable smart home devices included multi-function hubs, smart lighting, video doorbells, and smart locks. There was also demand for smart landscaping and energy-saving devices.
Most homeowners consider improving security and energy use a top priority. Including smart devices in those categories can increase the amount a home buyer is willing to pay for your flip, especially since both security and energy savings help a buyer save money in the long run.
Consider Incorporating AI
Depending on the market you’re in, you might consider including some cutting-edge smart technologies in your flip. For example, if you’re marketing to more affluent homeowners or are building in a higher-priced neighborhood, including AI smart tech could be a good option.
For example, AI-enabled smart cameras can improve security well beyond a traditional video doorbell by tracking movement and identifying what might be happening. AI tools can also help homeowners manage energy use by detecting common patterns and automatically lowering or increasing the lights, temperature, or other devices to save energy.
As you draw up the plans for your renovation, remember that it’s important to use tech tools that integrate easily with each other and commonly used devices. You don’t want to install a tool the homeowner can’t use because it doesn’t “talk” to their phone or smart hub.
You also want to avoid committing the homeowner to a tech ecosystem they may not be part of. Make sure any device you install works well with Apple, Google, and Amazon hubs to maximize the appeal of the property.
Make Sure the Improvements Make Economic Sense
It’s easy to get carried away with many kinds of improvements during your renovation, and smart devices are no different. However, it’s essential to plan carefully to ensure your flip will still be profitable.
Everyone wants to achieve maximum profit on their flip, and that requires a deep understanding of the neighborhood, the prospective buyer, and your own capabilities. There are many occasions when the timeline and quality of results will make it best to hire a professional rather than do all the work yourself, for example.
Some other ways to complete a cost-effective flip include understanding the market, choosing the right property, and having a clear project plan with objectives and timelines. Choose your contractors carefully, finding a balance between price and reliable quality.
You’ll want to avoid over-renovating for the area. Don’t add so many smart home features or other upgrades that your flip becomes the highest-priced home in the neighborhood, or you’ll struggle to get the price you need to be profitable.
If you want to enable a home to be a smart home but it doesn’t make financial sense to include the devices, one effective trick is to wire the home to make smart devices easy to install. The homeowner can buy and use the smart devices later, and the fact that the home is set up for smart technology makes it more attractive.
A Smart Home is a Smart Choice For Your Flip
With the right planning, creating a smart home during your renovation can dramatically improve the profitability of your flip. You’ll be able to stand out from the crowd in the housing market by offering something cutting edge, you’ll sell the home more quickly, and you’ll likely get a better sales price as well.
Of course, it’s important not to go overboard, but there’s a lot you can do without incurring significant costs. If the devices themselves don’t fit in your renovation plan, simply wire the home to make it easy for a buyer to install them later.
Technology is advancing quickly, and homeowners are always looking for ways to save money on energy costs and feel more secure at home. By installing smart tech tools in those categories, you can help the property generate the interest you need to be profitable.
Author: Miles Oliver
