How will smart home technology impact home sales?
Even if you're not planning on selling your home, there are great benefits to investing in smart home technology. From increased security and peace of mind to energy savings and convenience, a smart home can impact the future of your property. Plus, implementing smart tech has the added benefit of increasing the value of your home when it's time to sell.
Many of us will eventually sell our homes, and smart technology can increase their value, so it's good to know that the technology we use to improve our daily lives can also be an investment that will pay dividends for years to come.
By the end of 2018, there were 45 million smart home devices installed in U.S. homes, and it is predicted that more than half of U.S. homes will have a smart device by 2023. Sales of smart technologies, including entertainment, security, energy, and comfort, are expected to grow significantly.
Currently, there are only a few homes that can be technically classified as smart homes, meaning that homes that now feature smart technology offer interested buyers unprecedented comfort and convenience. As smart technology becomes an essential part of homes across the country, it is becoming increasingly important for sellers to keep their homes up to date with the latest smart home technology to increase their market value.
Add value easily
The great thing about smart home technology is that most of it can be installed without hiring a professional, meaning it adds immediate value and increases your return on investment.
Another benefit is that many devices can be used for multiple purposes: Cameras and sensors can identify potential security breaches and send an alert to your smartphone when you leave, or sense activity when you're at home and adjust the temperature appropriately or turn the lights on or off.
Security and energy savings are two of the main benefits a smart home offers to its residents. If you're selling, these benefits are obvious to potential buyers and are something every homeowner wants. Even more attractive to buyers, a safe, efficient home is cheaper to insure.
Better Security
Standalone user-customized smart gadgets, such as Amazon Echo speakers, are unlikely to be left behind when a property is sold. But smart technology that remains part of the home after the sale can increase interest in the property and justify its value to homebuyers. A good example of this is a smart security system.
Security systems have always been a source of value for the residential market, and advances in technology have allowed home security systems to do much more than sound an alarm.
By incorporating motion sensors, built-in cameras, two-way voice communication, and water leak sensors, smart home security offers an affordable, easy-to-install solution that offers a wide range of benefits.
If the system detects any activity or potential issues, notifications are sent directly to your smartphone. By communicating all these benefits to buyers, sellers can differentiate themselves from others in their area.
Save energy
Energy-saving technology is another big selling point in the real estate market. The size of the U.S. green building market has grown from less than $5 billion in 2005 to more than $80 billion a decade later, and energy efficiency is the No. 1 reason people want green homes.
Smart home technology can make energy use more efficient by monitoring your home environment and automatically making changes that save on heating, air conditioning, and electricity. Door and window sensors are good examples of smart home devices that are cheap, easy to install, and can be used for a variety of purposes.
Homeowners can sign up to receive notifications via a smartphone app if their doors or windows are left open or ajar, not only for safety but also to help prevent energy waste.
Advanced automation platforms allow homeowners to customize the entire house to their requirements, whether that be setting selected lights to go off at sunrise or having a smart thermostat adjust the temperature by evaluating a range of specified conditions.
Pre-programmed triggers allow smart systems to take actions autonomously. For example, ground floor lights can be set to turn on when the security system is armed and motion is detected. Outdoor lights can turn on or off depending on certain conditions, such as how long a door is open or how dark it is outside.
In addition to the added convenience and security that attract smart home buyers, detailed lifestyle-based customization helps prospective buyers feel like they are buying a home, not just a house.
Insurance premium savings
People buying new homes are always looking for ways to cut costs, and the fact that a new smart home will cost less to insure only adds to its appeal. Insurance companies want to cover anything that has a low risk of paying out, and an advanced smart system that monitors every part of the home is very attractive to insurance companies.
A safe home involves two things: protecting it from intruders and preventing damage from disasters like floods and fires. In a smart home, security is managed by a system that includes interconnected elements such as motion sensors, glass break sensors, sirens, HD streaming cameras, etc. If any element of the system detects an abnormality, an alert is sent to the homeowner's smartphone.
They can also send you alerts about potential disasters: smart smoke detector monitors will let you know when a smoke detector goes off, and water leak sensors will let you know the moment they detect the presence of potentially dangerous water.
Smart homes can even provide insurance companies with enough data to assess potential risks, and if homeowners choose to share that data, insurance companies can inform homeowners about changes they should make to prevent disasters before they happen.
All of this means a much reduced risk of experiencing a catastrophe when you get home, happy insurers lowering premiums and providing greater value to buyers who get peace of mind and savings in their new smart home.
The next generation of home buyers
Concerns about purchasing a home with pre-owned smart home technology can be addressed by communicating the customizable features of a smart home security system: Any system can be completely reset, requiring entirely new credentials, and configured with new automation settings, allowing new owners to create their own unique smart home profile.
The next generation of home buyers are beginning to recognize smart home technology the same way we recognize our mobile devices: it’s an essential part of everyday life.
In fact, today's consumers are more savvy about the benefits of technology and more comfortable incorporating it into their homes. Technology has evolved beyond a passion to a necessity, and the next generation of homebuyers will not only want but expect the security and convenience that smart home technology brings to their home.
Many buyers will seek out these efficiencies on their journey to becoming a new homeowner, creating new opportunities that real estate sellers can capitalize on.
More Home Selling Resources
About the Author: The above article, “Exploring the Benefits of Smart Home Technology When Selling a Home,” was written by Christopher Carney, Co-Founder and CEO of abode Systems. Christopher has over 15 years of experience in software and security technology and developed abode to give consumers peace of mind with a simple home security system.
About Rochester Real Estate Blog: Rochester Real Estate Blog is owned and operated by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.
With over 35 years combined experience, we are happy to share our knowledge and expertise if you are looking to sell or buy.
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