RDBMagazine.com |

Magazine Article

  

Magazine Article
Most Read Stories Today Most Read | Most E-mailed Stories Today Most E-mailed | Email This StoryE-mail Article | Print This StoryPrint Article | Save Article | License Article [Get Copyright Permissions]
Where's the Profit?
Builders who don’t include technology in their homes are overlooking profit opportunities.
Bookmark and Share



Profit can be made on upgrade features such as the Sony in-wall DVD/CD player pictured here, which distributes audio and video in the master bedroom.
Home design: Lusso Homes of Distinction


This outdoor home theater allows the homeowner to entertain under the starry sky and gentle breezes. The theater sits at one end of the wrap-around back patio (see inset, below).
House design: Lusso Homes of Distinction


Building a home with the proper wiring allows homeowners to pull audio and video through the in-ceiling speakers and on-wall TV in this bedroom by Custom Homes. Add-ons such as these are where builders can make profit.
Home design: Custom Homes


What was once a boring bonus room can be transformed into a profitable home theater like this by Playback with just a little planning and cooperation with a technology integrator.
Photo: Tim Buchman


Structured wiring delivers video to the TV on the wall, and audio to the speakers in the ceiling in this room by Playback.
Home theaters can be an easy sell, builders say, because so many clients want them, and they’re easy to deliver in a home with structured wiring.
Home design: Custom Homes


A specialized technology Thomas included in one of her homes is a sensor that alerts the homeowners when someone drives up their driveway.

To maximize technology’s value it’s important for an appraiser to understand the value of whatever home technology is included in a home. Thomas has never encountered a situation where a bank says the technology isn’t worth what it’s worth, “But I know there are appraisers that only go by square footage. If there’s an allowance for technology and it’s built into the price of the house, we’ve never heard that an appraisal was less than the true value. Still, make sure appraisers value technology,” she says.

Install the Basics

Technology products with good margins for builders include security system prewire, a base security system, the ability to handle high-definition television throughout the house, and a prewire for distributed audio in every room and surround-sound systems in a room or two, Cioe notes. But the key to maximizing profit for a builder, and enjoyment for a homeowner, is letting the client know the home is wired for the future.

“Some builders put $2,000 of structured wiring in a home but don’t tell the homeowner it’s in there,” Sasser says. “If a builder is not going to market the fact that the wire is there, or tell anyone it’s in there, it’s a waste of time and money. A builder has got to sell what’s there.”

Sasser suggests builders focus on a home’s infrastructure, especially planning out the space during the design stage. For free, Playback will help with laying out a space so technology doesn’t become an afterthought. “When I walk into a house that was thought through and well laid out, it’s much better than having a homeowner who wants a TV on the wall but the builder didn’t plan for power nearby, and didn’t include a recessed area for the TV. It’s all the simple things that with foresight make a home look more complete and more valuable,” he says.


[Get Copyright Permissions] Click here for copyright permissions!
Copyright 2010 Cygnus Business Media