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Home Buyers Drive Process of Adding ‘Smart’ Features
 Home buyers — not builders — drive the process of adding “smart” features to their homes, according to builder observations about what home buyers want in home electronics and how builders and other professionals can more effectively and profitably collaborate with residential electronic systems contractors (ESCs).
Home buyers generally asked builders about adding alarm systems and home theaters to their homes, and many owners added the systems after the home was built, according to the research
Builders participating in the research indicated that they were somewhat leery of the reliability, obsolescence and programming of smart technologies. They also clearly indicated that they did not want “call-backs” related to smart features and felt “overwhelmed” by the additional support they believed smart homes might require.
The additional costs of using ESCs to install smart features in new homes also concerned the participating builders.
The research was conducted by the Institute of Residential Marketing (IRM), the Custom Electronic Design & Installation Association (CEDIA) and the NAHB Research Center as part of a 2006 IRM research project and involved eight focus group sessions of builders held in Dallas and Chicago last September.
During each session, builders were asked about their experiences with home technology installation, what kinds of home technology needs and wishes their buyers said they wanted and what support they needed from ESCs.
Because focus groups were used to develop the builder insights, the results represent the qualitative findings of those who participated in the research and are not a statistical representation of the industry at large that survey findings can yield.
Home Buyer Demand a Mixed Bag
Most builders involved in the research indicated that the home buyers who were interested in smart homes were busy, affluent and often had families.
Home buyers also told builders that they were interested in smart systems that were easy to program and easy to maintain. Home buyers also were “fearful of losing control” because of the smart technology available, yet they imagined a wide array of uses and benefits stemming from the technology.
The builders said that they listened to home buyers in order to determine whether they would be interested in adding smart technology such as security systems, automated sprinklers, home theaters or other separate systems to their homes.
Is Being Smart Too Complex for Builders?
Most of the builders participating in the focus groups found smart homes “too involved and too complex.”
“You know how many problems you have at home just with the VCR, TV and cable box,” said a Chicago custom builder. “Multiply that by 50.”
Builders also reported that some buyers' requests went beyond their comfort zone.
However, most builders said that they did offer their home buyers smart modules or individual systems such as alarm systems or home theaters.
The builders indicated that their homes were often pre-wired for smart technology, but that pre-wiring was not designed or installed by one supplier or contractor.
Builders also believed that ESCs and smart homes were best configured just prior to or after occupancy in order to prevent damage to the smart equipment and technology.
More Information, Confidence Needed to Sell Smart Features
The builders, in general, said that they knew about many different aspects of smart homes and have sold smart homes in the past.
They also said that consumers are able to envision many desirable aspects of living in a smart home.
However, before builders take a more active role in product selection and purchases, the respondents agreed that they needed more information about smart technologies and they needed to work with trusted subcontractors or ESCs in order to confidently sell the technology to home owners.
“I’m not going to try to install it,” said a Chicago production builder. “But if I know more about it, we can integrate it with other trades.” The builder also said that with a trusted trade, he would be able to “answer some questions from the home owner in some instances.”
“We don’t trust the ‘smart home’ yet,” said a Dallas builder. “We trust a person who understands and who can tell us what’s going on. Over time, maybe we’ll trust the ‘smart home,’” the builder added.
For Complete IRM Research Results
For complete results of the IRM research, click here.
For more information about the IRM research project, visit www.nahb.org/mirm.
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