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How long it takes to break even on smart home upgrades

(TECHNOLOGY NEWS) Smart home features can spruce up any house but when you’re upgrading to these features, where does the spending end and the savings begin?

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Smart home devices are primarily marketed as adding convenience and luxury to your home. They allow you to interconnect your appliances with your smartphone and to monitor and control your utilities remotely. But do smart home devices actually save you money?

Smart devices like speakers and music players are obviously designed to allow you the convenience of playing whatever music you want, wherever you want it. But smart devices that monitor or adjust utilities like heating and water could also save you money on your bills.

Joel Lee over at MakeUseOf has crunched the numbers. He’s published a rundown of the most money-saving smart devices, and how long it will take for the devices to “pay for” themselves.

Smart thermostats are perhaps the most obvious devices for saving you money on utilities. Nest says that their thermostat will save you 13 percent on heating and cooling; ecobee3 claims an even more impressive 23 percent.

Comparing these numbers with U.S. Department of Energy statistics on average household utility costs, Lee calculated that a Nest thermostat will pay for itself in just over two years, while an ecobee3 will pay for itself in just one year.

Rachio is a smart sprinkler device that maintains your lawn watering schedule. It makes sure that the sprinklers turn off on rainy days, conserves water when it’s cold out, and optimizes the watering schedule for maximum absorption.

Rachio claims it can help you cut your spending on water for the lawn by 50 percent. Lee estimates a more conservative 30 percent, but even so, says that the device will pay for itself within 15 months.

Plus, he adds, a smart sprinkler system will also increase the overall value of your home, letting you set a higher price point should you decide to sell it.

Lee wasn’t particularly impressed by LED lightbulbs, pointing out that it will take almost the full lifecycle of the LED bulb to recoup the expense of buying them in the first place. The savings are a bit better, he says, if you compare them to the costs of running incandescent bulbs, and if you skip over the big brand names in favor of lesser known, but also less expensive LEDs.

Lastly, Lee recommends smart moisture sensors. These devices can warn you of leaks, roof damage, and other water damage long before you might notice the effects. If these sensors can give you a heads up on even one potential water-damage disaster, the device will clearly have paid for itself.

It appears that smart home devices could be worth the investment, although it’s important to note that these devices are notoriously insecure. While you may save money on your utilities, one bad hack could easily cancel out these money-saving benefits.

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Ellen Vessels is a Staff Writer at The Real Daily, and is respected for her wide range of work, with a focus on generational marketing and business trends. Ellen is also a performance artist when she's not writing, and has a passion for sustainability, social justice, and the arts.

Real Estate Technology

How OpenDoor became a unicorn (a company valued at over $1B)

(BUSINESS NEWS) Good news for direct home sales and fans of adorable mythical quadrupeds – OpenDoor is a unicorn. What does its billion dollar valuation mean for the modern real estate market?

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Online direct home sales is officially a thing. That was probably inevitable, given increasing automation of sales (robots are coming for your jobs – not that they can do them yet!), an ongoing Disrupt All The Things mentality amongst entrepreneurs, and sellers’ frankly understandable desire for a smoother, easier way to get rid of their people boxes.

Seriously, the Holmes-Rahe Life Stress Index puts selling a home above quitting freaking smoking in terms of medically significant stress. People are understandably interested in making that suck less.

Enter OpenDoor.

The OpenDoor offer is direct online sales. TL;DR – OpenDoor gets information from the customer, then sets a price for the property being sold, sight unseen. On top of that price, OpenDoor charges a risk fee, a flat 6.7 percent on top of the stated value, to guard against depreciation. In exchange, OpenDoor takes over the selling process, spiffs up the house and sells at a profit. As CB Insights says in its excellent analysis of OpenDoor, it’s basically high tech house flipping.

The OpenDoor pitch is that their system benefits both seller and buyer. They’re impressively honest about the math: They say their flat 6.7 percent is pretty much comparable with the costs and fees associated with traditional real estate sales, which is true. The advantage comes in, says OpenDoor, because the property is then out of the seller’s hands, no muss, no fuss.

That spares them from the hassle of home sales, but it’s also easier on the prospective buyer than the usual peer-to-peer approach. No need to balance two mortgages, no deals contingent on the house selling at a certain price. The house has already been sold at a certain price. Pony up and it’s yours.

We could argue pros and cons all day, but that’s not the point. The point is that, on a small but growing scale, the OpenDoor offer is working. OpenDoor currently operates in and around Atlanta, Las Vegas, Orlando, Phoenix, Raleigh-Durham, and my own fair hometown of DFW. OpenDoor focuses on second-tier real estate markets, avoiding the fluctuations and complex variables of Realty Madness as it is to be found in NYC, the Bay Area and so on.

In those cities, since its start as a spindly little startup in 2014, OpenDoor has served better than 10,757 total customers.

Per the CEO, it currently accounts for 3 percent of home sales in Phoenix and Dallas. Chump change that ain’t.

They’re already thinking expansion. San Antonio and Charlotte are the next towns slated for Missy Elliot treatment. For those of you who missed the 90s, Missy Elliot treatment is of course “put the thing down, flip it, and reverse it.” Surprisingly apt! Seriously, OpenDoor’s missing a trick if they don’t license that one.

Catchy but unpronounceable hooks aside, OpenDoor is taking a fair amount of risk along with their more than fair amount of money. In particular, focused as they are on moving up in the world, OpenDoor is carrying a lot of debt. As of fall 2017 they had borrowed on the order of $600 million to fund home purchases.

At their current 7.4 percent average gross margin on home sales, that’s sustainable, but it’s a whole lot of money to gamble on a new thing continuing to work. A housing downturn or even a comparatively minor shift in value could easily throw that balance out of whack, and while OpenDoor executives state that the debt would still be supportable in a downturn with an increase in risk fee, there’s always the possibility of chilling an already shaky market with too big a jump.

To state the obvious, avoiding that kind of risk is literally why there are Realtors, and why the real estate market in general works the way it does.

Distributing the risk between bank and homeowners, rather than having one organization take it all, minimizes the possibility of failure. OpenDoor has decided to take that risk, and is confident its model will be enough to ameliorate it. Whether that’s the case or not is an open question.

Most unicorns are just shiny horses standing under the right branch. But if OpenDoor can sustainably deliver on its core offer, then score one for the mythical horsebeast.

This editorial was originally published January 9, 2018.

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Real Estate Technology

Make sure your password isn’t on the “Worst Passwords” list

(TECH NEWS) Gather around for the worst passwords of 2017 and be prepared to feel ashamed if yours is on this list.

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Alright pals, it’s time for another roundup review of the most common passwords. Looking back at 2017, there were tons of services that got hacked, from Equifax to Yahoo. While some breaches can leave everyone blindsided with the skill behind the attacks, other hacks are easily avoided by not having a dumb password.

Like, for real, if your password is still “password,” no one will send you a sympathy card when your online life gets wrecked.

And if you’re still rocking “123456,” do yourself a favor and log off from everything forever.

Security firm SplashData released a compilation of the top 100 “Worst Passwords of 2017” (#34 is pretty neat). They crafted the list from an analysis of five million leaked online user records from the past year.

While the list is hilarious, it should be taken with a grain of salt. There are roughly 3.2 billion people online, and it’s likely each person has more than one account that requires login credentials. Regardless, here are the 25 worst offenders:

  1. 123456
  2. password
  3. 12345678
  4. qwerty
  5. 12345
  6. 123456789
  7. letmein
  8. 1234567
  9. football
  10. iloveyou
  11. admin
  12. welcome
  13. monkey
  14. login
  15. abc123
  16. starwars
  17. 123123
  18. dragon
  19. passw0rd
  20. master
  21. hello
  22. freedom
  23. whatever
  24. qazwsd
  25. trustno1

If we pretended like each person only has one account, a leaked list of five million doesn’t even make up one percent of all passwords online. Plus, the internet is now rife with bots, who aren’t included in that 3.2 billion headcount.

Sometimes programmers use easy to remember passwords for bots that make it in to the hall of shame, like “qwerty” or “12341234.” Plus, many databases require a password to look at passwords, so hopefully those didn’t leak onto the list.

Even with this in mind, there are still plenty of actual people using tragically simple passwords featured in SplashData’s list.

My personal favorites include “trustno1” and newcomer to the list, “starwars.” Plenty of common first names like Daniel, Amanda, and Matthew made it on the list as well.

Some very ambitious people opted for wishful thinking in using luxury car brands like Ferrari, Mercedes, and Corvette as their passwords. Other notable mentions include “letmein” and inexplicably, “cheese” and “killer.”

Here’s the thing: you’re probably going to get hacked at some point. If you’re lucky, it will just be some throwaway email account you use for special offers.

Protect yourself by regularly changing your passwords, and using unique passwords for each account you have. You can use generators to create strong passwords, and keep track of them all using a secure password manager services.

Additionally, if two-factor authentication is available through whatever service you’re using that requires login credentials, take them up on that additional protection.

Ultimately though, if the service you’re using isn’t properly encrypting and hashing personally-identifying information, a strong password won’t help.

Oh and also because the internet is full of equal amounts of good and bad, there is the constant presence of persistent hackers who will relentlessly use phishing attempts and large-scale hacks to derail databases. Secure passwords won’t help either.

Basically we’re always open for hacking attempts, and nothing at the moment can really stop them. However, after having my bike seat and accessories stolen numerous times, I learned a nice philosophy that can apply to all sorts of things.

You can’t stop someone from trying to steal your stuff, but if you make it difficult enough they may give up. Do whatever you can to secure your passwords, but recognize that ultimately there aren’t that many great protections in place.

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Real Estate Technology

How to delete your digital footprint instead of just whining about it

(TECH NEWS) Instead of whining about wanting to delete your Facebook or Google data, why not actually delete it? A new site makes it all possible.

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In the wake of the Cambridge Analytica data grab and the resulting suspicions surrounding targeted advertising, more and more people are beginning to appreciate the idea of deleting their digital footprints from the Internet – but where does one even begin?

Fortunately, Deletist has more than one answer for you.

Decent, comprehensive, non-biased information can be difficult to find, especially when it comes to something so nuanced as removing your data from the Internet. Deletist provides such information for common social platforms including Facebook, Instagram, LinkedIn, Reddit, and Google, with updated instructions coming for WhatsApp ASAP.

Once on the website, all you need to do is click at the top of the page the app icon for the service for which you want to delete your information. Doing this loads up a set of instructions not only for deleting your account, but also for downloading a copy of your data and erasing as much of your digital fingerprint as is currently possible.

Having this kind of information available is refreshing in and of itself, but the level of detail behind the instruction is especially invigorating given the breadth of the demographic that’s most likely interested in deleting themselves off the Internet. Too often, tech tutorials are geared toward people who need less instruction than suggestion while sometimes the non-tech crowd struggle to decipher the meaning of phrases “hamburger” and “drop-down icon” in context.

The site’s creator makes being a “deletist” accessible and easy for everyone.

One point that is brought up on the instruction page for Facebook is something that is especially important for those not in the know: if you use your Facebook (or Google, or LinkedIn, etc.) account to sign up for a service such as Spotify, wiping the list of linked apps and then deleting your account will make recovery for the service impossible.

For this reason, finding a way to move your service’s contact information from using Facebook (or the like) to using an email address is a good idea.

And, if you do delete Google and its related products, a word of advice: don’t switch to Yahoo.

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