Does Adding a Security System Increase Home Value?

Home security systems increase your home’s marketability

Home security systems are no doubt a desirable feature that helps market your home. According to research conducted by Market.us, 69% of households in the U.S. have at least one smart home device, and around 32% of households have an alarm system. The same research also showed 36% of adults aged 35 to 54 believe cameras offer the most effective protection for homes.

When you’re selling a house with an alarm system, appeal to tech lovers by highlighting these benefits in your marketing materials:

System features: Not all buyers are familiar with how home security systems work. Include details like these on how your system operates:

• System sends notifications to your smartphone when someone is at the door
• Cameras at all potential entry points protect your home from all angles
• This smart home security system is compatible with other smart home devices
• Cameras include professional monitoring for $30 a month

Home insurance discounts:
Home security systems may lower your homeowners insurance costs since they can reduce the likelihood of home invasion or theft. Home insurance companies grant the biggest discount for systems with professional or central monitoring. This discount may be substantial enough to cover or exceed the running costs of the home security system.

Increased safety:
Research shows the visible presence of home security systems deter invasion and theft. If crime does occur, security camera footage provides evidence to identify perpetrators. Hang tight and we’ll share some facts on how home security systems prevent crime with you in a minute.

Don’t expect buyers to pay more for your home’s security systems

While home security systems help attract buyers, don’t expect these systems — or lack thereof — to make or break a buyer’s offer. Buyers see home security systems as an added bonus, not necessarily as a value adding factor they will pay more for.

This even applies to buyers in tech junkie regions like Northern California. Jay Friedman, a top real estate agent in Roseville who sells 75% more homes than the average agent, shares he recently decked out a luxury home with smart home security features including an August door lock, Ring doorbell, cameras, and televisions to entice buyers:

“Honestly, I thought and my client thought that the smart house features we put in there would add value. We spent some pretty good money on it, but it didn’t add to the value. It added a little bit of pizzazz, but nobody saw the value that it added, the expense that was spent to make it happen.”

Friedman explains that while prospective buyers verbally shared they liked the extra security features, it did not influence their offers. “When it came down to it, we still got grinded on the price,” he admits.

Home security systems may slightly increase your home’s appraised value

When it’s time for appraisal, home security systems may slightly impact your house’s value for the better. Appraisers determine your home’s value by comparing its features to those of recently sold comparatives, also known as “comps.” The appraisal weighs objective factors such as square footage, number of bedrooms, and location with subjective criteria like condition, views, and add-ons, including security features.

If your home is in excellent condition and includes the latest smart security features that other properties lack, appraisers may consider the technology as an influencing adjustment to secure a higher comparative price. However, this difference is typically minute since it is difficult to put a number on the value home security systems add, especially due to the rapidly improving nature of technology. Appraisers ask themselves, how much more should buyers pay for a house with a home security system that could grow outdated in 5 years’ time?

Improved safety features protect the value of your home

While it’s contestable whether home security systems add value to your property, there is substantial evidence that these systems protect your valuables in your home.

A notable survey of 422 incarcerated burglars by University of North Carolina at Charlotte revealed security cameras were the most effective deterrent to burglars. 60% of the burglars said they would only target a site without cameras and 50% said they would abort a burglary if security cameras were discovered. Advanced security systems also help cities prevent theft and vandalism.

If your home security system prevents a break-in, you’ll save thousands of dollars in loss. The true impact of burglary is even higher when considering the loss of irreplaceable items such as family heirlooms and the inestimable emotional damage to homeowners.

There are no guarantees against crime, but adding a home security system provides your house with a layer of protection that may compensate for the lack of return on investment when it’s time to sell. Cameras and point-of-entry alarms give you the ability to:

• Monitor your home if you’re selling remotely
• Contribute suspect-identifying camera footage in the event of crime
• Defend against package theft
• Keep an eye on the house while your kids are home
• Help Airbnb guests and tenants feel safe (do follow Airbnb’s rules and local laws on camera placement)
• Deter home invasion

Step one: Talk to an expert!

Selling your house soon? Connect with a top agent near you to get an expert opinion on how much your house will sell for, what to fix before listing, and the latest local housing market trends.

Learn More

Home security systems are valuable, just don’t expect a full ROI

View adding a home security system as a personal decision: the system will have a greater impact on your experience living in your home than it will on the value of your home when you sell. If you do opt to install a home security system, highlight the system’s features and benefits when you list your home — buyers will remember a house decked out with bright and shiny safety tech.

Header Image Source: (APChanel / Shutterstock)