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Beyond the security issue, by installing IOT devices in your home, you are essentially lowering the value of it. Think about it. When you go into a home for a v

by electic 11y ago

Beyond the security issue, by installing IOT devices in your home, you are essentially lowering the value of it. Think about it. When you go into a home for a viewing, seeing an out of date dishwasher, fridge, etc lowers the value. It makes the house less attractive. Now add IOT devices, that are out of date, that really hurts the home. Would love to get people's thoughts of homes full of these outdates and possibly insecure devices.

knz 11y ago
Does it lower the value? Or do newer appliances increase the value? I sold a house last year that included a Nest thermostat and some z-wave outlets (that could also be controlled manually) - the buyer (in her 20's) said that these added to the appeal. Will generic z-wave devices go out of date any more quickly than other appliances?
- PeterWhittaker 11y ago
  Well, I suppose the correct answer is that for a given technology T there is a window W in which T causes value to increase, after which T causes value to decrease. The slope of the value increase from the moment of installation I to the end of the window, I+W, is probably quite steep, then levels off, then, at W, declines at first slowly then after some W' (the moment of real obsolescence), declines precipitously, and declines below the original value V. In other words, that Nest has/had appeal for 1-3 years, after which it is/was yesterday's news. A house sold during those 1-3 sells for more because of the Nest, but, if sold afterwards, sells for less (adjusted for other market factors) because of it.
  - knz 11y ago
    I have to disagree in regards to the Nest. Most houses still have their original thermostat. I don't see the Nest ever causing a house to sell for less. Even if Next/Google stopped supporting the product it would be trivial to replace it with a cheap conventional thermostat.
shostack 11y ago
That only applies if you are selling the home when outdated IOT devices. Just like appliances, where a a modern stainless steel Viking range can increase your home value, so too could a modern controller for IOT devices. But both these things get outdated (at different rates), and lose their luster at which point they are upgraded or left to get older because they may not be the new hotness, but they work. No major difference here.

by electic 11y ago

knz 11y ago

Does it lower the value? Or do newer appliances increase the value? I sold a house last year that included a Nest thermostat and some z-wave outlets (that could also be controlled manually) - the buyer (in her 20's) said that these added to the appeal. Will generic z-wave devices go out of date any more quickly than other appliances?

PeterWhittaker 11y ago
Well, I suppose the correct answer is that for a given technology T there is a window W in which T causes value to increase, after which T causes value to decrease. The slope of the value increase from the moment of installation I to the end of the window, I+W, is probably quite steep, then levels off, then, at W, declines at first slowly then after some W' (the moment of real obsolescence), declines precipitously, and declines below the original value V. In other words, that Nest has/had appeal for 1-3 years, after which it is/was yesterday's news. A house sold during those 1-3 sells for more because of the Nest, but, if sold afterwards, sells for less (adjusted for other market factors) because of it.
- knz 11y ago
  I have to disagree in regards to the Nest. Most houses still have their original thermostat. I don't see the Nest ever causing a house to sell for less. Even if Next/Google stopped supporting the product it would be trivial to replace it with a cheap conventional thermostat.

shostack 11y ago

That only applies if you are selling the home when outdated IOT devices. Just like appliances, where a a modern stainless steel Viking range can increase your home value, so too could a modern controller for IOT devices. But both these things get outdated (at different rates), and lose their luster at which point they are upgraded or left to get older because they may not be the new hotness, but they work. No major difference here.