Passion Investments: Property
Brainy Abodes
Ernest Beck
02/01/2005

When Greg, a Los Angeles real estate developer, leaves the office to return to his Bel-Air home, he uses his cell phone to call the system that controls every aspect of his environment. He connects to processors that manage everything from his lights to his security cameras, heating, air conditioning and music. Using his mobile phone, he fires up the heater on the outdoor Jacuzzi so it will reach the perfect temperature by the time he arrives. His smart home, Greg says, “makes life easier and more comfortable, and it’s certainly more fun to have control.”

LIGHTING SCHEMES, automatic shades on windows & doors that are controlled via remote or touch screen make a remarkable difference in a room. (Photograph by Kevin Bubbenmoyer.) 

Like other smart-house aficionados, Greg and his wife have readily embraced the latest generation of computer-controlled networking technology that can turn an ordinary house into an interactive home. While all of these functions can simply and inexpensively be controlled with, say, a television remote or a wall thermostat, advances in computer networking, wiring and other technologies have enabled designers to integrate them. Instead of flicking a light switch or popping a DVD into a player, for example, Greg orchestrates these and other features by using the wall-mounted touch screens throughout the house.

From any screen, Greg can select a CD or DVD, scan the perimeter of his house via its security cameras or set the lighting in any room. He can even activate a spray of water in the infinity pool. A self-described electronics buff, Greg is fascinated by automation and, like many homeowners who are installing smart-home systems, is comfortable with computers and technology.

Smart technology like Greg’s will become more attractive to home buyers over the next five to 10 years, experts suggest, especially as more appliances that can be integrated into existing systems come to market. Realtors claim that smart technology is adding value to properties. For example, a five-room apartment on Manhattan’s Upper East Side, equipped with $500,000 worth of smart-home equipment, is on the market for $1.9 million. A similar apartment without automatic blinds, drop-down shades and an advanced audio system would sell for about $1.3 million, according to real estate agent Lois Peerce. Pam Liebman, CEO of the Manhattan office of the Corcoran Group, a real estate company, says such properties are increasingly drawing younger couples and families who want homes equipped with these devices. “Technology is part of the landscape of living,” she says. “If you walk in and see a house like this, it’s more appealing than a house with nothing.”

THAT DOES NOT COMPUTE
Creating a smart home can be costly. Designers estimate that a lighting control system for a 12,000-square-foot home might run as high as $75,000. Installing audio and television systems in every room adds to the bill. A package can run upward of $300,000. Greg says he paid $600,000 to install his smart system, using many off-the-shelf devices complemented with customized items, including nine plasma screen televisions. About half the cost was to wire the newly built home to accommodate the technology. (In an existing home, this represents a more convoluted undertaking, because it usually entails ripping out walls.) Greg also “future-proofed” his home by installing extra wiring throughout the house, as well as adding extra Internet ports for new devices and the next generation of wireless networking equipment he is sure he will acquire.

WHEN SOMETHING goes wrong— and things do go wrong— be ready to open your checkbook.
Future-proofing aside, every piece of technology can become outdated. Tim Woods, vice president of the Internet Home Alliance, admits that homeowners who want to keep pace with technology will have to invest continually in new devices. “There is always going to be something better,” Woods says. “The variety of technology will continue to explode, and that means more opportunities to spend money.” Not all these new features, however, will likely require considerable expenses such as rewiring; migrating from wired to wireless equipment, for example, is relatively easy and affordable.
Fortunately for prospective smart-home owners, however, the cost of many of the must-have components seems to have either hit a plateau or begun to decline. The technology elements of elaborate home theaters, for example, have topped out in the range of $250,000. Automatic shades run about $1,500 per window. Simple networking devices that link several computers in a home are available for as little as $100.

The fact that people are becoming comfortable with digital technology, both wired and wireless, and what it can accomplish, is fueling interest in these intelligent abodes. Drop-down plasma screens and shade and drapery controls are the kind of “usual requests today that were unusual five years ago,” says Glen Hill, founder and president of Current Concepts, a home automation specialist firm in Coopersburg, Pa. One of his clients even wanted underwater music speakers installed in his swimming pool, as part of an audio system (controlled from a touch-screen panel) that could play classical music underwater and techno tracks poolside.

Intelligent networking is also emerging as a 21st-century convenience as homes become larger. “You don’t want to worry about walking a mile to turn out the kitchen lights when you’re in the bedroom,” says Paul Williger, an architect at Appleton & Associates in Santa Monica, Calif., which specializes in designing smart-home systems. Many of his clients are in their 30s and are building homes that average 12,000 square feet and cost approximately $6 million. They are interested in a wide range of smart-home features. One of his clients in California asked for a shower in which the water would always be warm. The solution involved installing a touch screen that controls the water flow before someone steps into the shower; the hot water is always on but does not come out of the faucet. Another homeowner wanted a TV installed in the shower, controlled from a waterproof keypad.

VALUE JUDGEMENT
Smart homes feature digital networks that control systems and appliances throughout the house, from home theaters to showers. While these residences are gaining cachet, construction and maintenance can be expensive: A lighting system for a 12,000-square-foot home can run as high as $75,000. Builders must choose systems and technology carefully to control costs and combat obsolescence.

Before investing in a high-tech home, buyers must decide how smart it should be. Choosing the appropriate control systems—mainly the software brain of the network that automatically integrates various functions—and the right accessories, and weighing the installation or retrofitting costs, are crucial. Williger often uses network control systems, such as AMX and Crestron, and Lutron lighting, which form the technology backbone of many a smart home. The cost of these systems varies widely, but all carry a premium over traditional design features. “Instead of a $5 light switch, we’re talking about a $300 electronic keypad,” Williger notes.

 A VALUABLE aspect of smart homes is that high technology need not be intrusive - moveable walls, such as the one shown above, can disguise plasma televisions and touch screens. (Photographs courtesy of Appleton & Associates Inc.)
Of course, technology mavens hold a distinct advantage when it comes to designing and living in a smart home. David Shapiro, an author of financial planning books who loves tinkering with technology, built his home in Los Gatos, Calif., around networked systems. Shapiro and his wife designed their 4,500-square-foot, Italian-style villa, located in the hills above San Jose, to accommodate their techno toys. Shapiro tore down a 1970s house on the property and built the new home with structured wiring, partly

Shapiro’s home has six plasma screens, one of which is in the master bathroom (above the fireplace), a whole-house audio system with a collection of more than 900 CDs and a home theater. Pictures from security cameras can be displayed on the plasma televisions or via an Internet connection. When someone rings the front doorbell, an image of the guest shows up on the plasma screen. In the bedroom, a plasma screen rises and swivels to face either the bed or a sitting area.

The cost of these smart devices came to a modest $75,000, Shapiro says, because he was closely involved with the design, installation and programming after he chose the systems. His expertise also helps when the technology falters. Common problems with smart homes and integrated networks include interference in the radio frequency waves between the universal remotes and the appliances, as well as power outages, which can disrupt connections between hard drives and remote devices, such as an audio system. Complicated programming instructions and the need to remember how to set up the systems can also vex homeowners.
 
“When something goes wrong—and things do go wrong—be ready to open your checkbook,” Shapiro says. But, he adds, the benefits of his smart house far outweigh the glitches. “When all of it is working, having this technology is worth every penny.” 

Ernest Beck has written for the New York Times, the Wall Street Journal and Inc. on art, design, business and marketing trends. ecbeck1@yahoo.com