How Has Smart Home Technology Impacted Real Estate?

Smart Home Technology In Real Estate

How Has Smart Home Technology Impacted Real Estate

There are certain home features that buyers are looking for in a home.  One of the most popular features that has been catching on like wildfire over the past several years is smart home technology.

Smart home technology has had a huge impact on the real estate industry.  There are some smart home technologies that will have buyers lining up for.

Whether you’re looking to buy a home, sell a home, or are thinking about investing in smart home technology for your home, it’s very important you understand how it has changed real estate and also know which technologies are the most popular.

Below you’ll find out how smart home technology has drastically changed real estate, what some of the best smart home technologies are, and also some facts and statistics about smart home technology.  

Smart Home Technology Facts & Statistics

Before we dig into how smart home technology has changed real estate and what some of the most popular products and categories are, it’s important to cover some facts and statistics about smart home technology.  One of the most startling statistic that you should know about smart home technology is that one in four Americans already own at least one smart home product, according to a joint survey between CNET and Coldwell Banker.

Below are some other important facts and statistics about smart home technology.

• Almost half (47%) of millennials have smart home products in their homes.
• 76% of the smart home products are being controlled by smartphones.
• 57% of Americans say that smart home technology products save them an average of 30 minutes per day.
• 45% of Americans say that smart home products save them money at an average of $98.30 per month.
• 91% of those who have smart home products would recommend to others.
• 81% of buyers indicate they’d more opt to buy a home if smart home products were already installed.

These are just a few of the many statistics and facts that were takeaways from the survey completed by CNET and Coldwell Banker.  The survey completed has some eye opening statistics and facts about smart home technology and the impact on the real estate industry.  Check out the entire survey here.

How Has Smart Home Technology Changed Real Estate?

Why Smart Home Technology Changed Real Estate

The real estate industry has been affected over the past several years by smart home technology.  It has made a huge splash into the industry and all signs point to it continuing to make a huge impact.  Below are some of the ways smart home technology has changed the real estate industry over the past several years.

Resale Values

Arguably the biggest impact that smart home products have had on the real estate industry are resale values of homes.  The most important thing for any home seller is the amount of money they can sell their home for.

One thing that is factored in when determining the market value of a home is what features and amenities a home has.  A home that has smart home technology products installed will have a higher value than a comparable home that doesn’t have smart home products.

Amount Of Market Time

There is no formula to determine how long it takes for a home to sell.  There are certainly factors that impact the amount of market time for a home, such as price, condition, features, and location.

A home that has smart home technology products typically will sell faster than a home that doesn’t have these products.  As mentioned above, 81% of home buyers would buy a home just because it already has smart home products installed.

Potential Buyers

Smart home technology also has the ability to change the type of buyers that potentially are interested in a home.  Many millennial home buyers are attracted to homes that have cutting edge technology features.  Installing smart home products in a home is a great way to improve the chances of attracting a millennial home buyer.

Smart home technology does not only have the ability to attract millennial home buyers.  For example, installing a smart home security product in a home can be an excellent way to attract a home buyer who is a single parent, due to the increased security feature of the home.

Since many of the smart home technology products focus on improving the energy efficiency of a home, it’s also feasible that these products can attract buyers who are very cautious about energy efficiency and the ecosystem.

What Are The Most Popular Smart Home Technology Categories & Products?

Popular Smart Home Technology Products

There are thousands of smart home products and categories that a homeowner can choose from.  Certainly the cost of these products and categories can vary quite significantly.  Below are some of the most popular smart home technology categories and products.

Smart Lighting

One of the popular categories of smart home technology is lighting.  Smart lighting is a great way to add ambiance, elegance, convenience, and energy efficiency to a home.  Smart lighting includes products such as smart outlets, smart switches, and smart bulbs.  Below are some of the best smart lighting products on the market today.

• Remote Control Dimmer Switches – It’s not always necessary to have your lighting in your home all the way up.  A popular smart lighting product that allows you to control the lighting levels are remote control dimmer switches.  Dimmer switches have been around for decades, but until recently, you had to physically control the level at the switch.  There are now many products available that allow you to control the level of lighting from your smartphone or tablet.
• Remote Control Dimmable LEDs – In addition to the remote control dimmer switches, there are also many remote control dimmable LEDs that are available in the smart lighting category.  LEDs have been around for years and are a great way to reduce the energy bills in a home.  In recent years, remote control dimmable LEDs have hit the market.  These light bulbs are able to be controlled by a smartphone or tablet as well.

There are many companies that offer smart lighting products.  A couple of the most popular companies that offer smart lighting products are Insteon and Phillips.  Many of the companies who offer smart lighting products offer starter kits that can get you started towards improving the efficiency of your homes lighting at a reasonable cost.

Smart Thermostats

The most popular smart home technology category over the past several years are smart thermostats.  As a Rochester NY real estate agent, it’s very common to see smart thermostats while walking through homes.  Smart thermostats are a great way to reduce the utility bills in a home.

There are many companies that offer smart thermostats and the cost of these thermostats can vary from around $75 up to $300-$400.  One of the most popular smart thermostat companies is Nest.  In fact, I happen to have a Nest smart thermostat installed in my home.  The Nest thermostat allows homeowners to control their thermostat from their smartphone, tablet, or home computer.

Many smart thermostats allow homeowners to set schedules for their HVAC systems, set home temperatures, and also away temperatures.  This can help eliminate wasting hard earned dollars on utility bills while away at work or on vacation.

Home Theater

One of the more expensive smart home technology categories is home theater.  Home theaters are commonly seen when selling a luxury home, but not exclusively.  There are many homes that are not considered luxury homes that have smart home theater products.  Below are some of the most popular smart home theater products.

• Smart Home Theater Remote Control – Do you remember the days of having 5 different remotes to control 5 different devices?   There was a remote for the TV, the receiver, the surround sound, and every other component of your home theater system.  One of the affordable smart home theater products that is available are smart home theater remotes.  These remotes allow you to control the functionality of your home theater system with one remote.  This simplifies turning on the system with the click of one button.  Many of these smart home remotes also allow you to control your system from your smartphone or table.  Logitech is one of the industry leaders in smart home theater remote controls.
• Smart Home Audio – Whole home audio systems have been around for years.  The technology has come a long way though with smart home audio systems.  There are now products that allow you to control the type of music that is playing in different rooms.  Most of these smart home audio products don’t require tons of wiring which is extremely convenient and allows quick setup.  Sonos is a very well known and cutting edge company for smart home audio products.
• Smart Home Media Players – Online streaming devices and smart home media players have really exploded over the past 5 years.  Apple TV is one of the more well known products that allow services such as Netflix, HBO Now, WatchESPN, Hulu, iTunes, and many other services to be displayed on a television.  The convenience of being able to stream different services through one device has spoiled those who take advantage of these smart home media players.

Home Security & Safety

Security and safety are very important to homeowners, buyers, and sellers.  There are hundreds of home security and safety smart home technology products available on the market.  Below are some of the best home security and safety products.

• Smart Door Locks – Over the past several years there have been many articles written talking about the possibility that door keys may become obsolete in the future.  This is very possible due to the number of smart door lock products that have become available.  A smart door lock allows a homeowner to access their home without the use of a key.  There are smart door locks that allow a homeowner to enter a numeric code, use a wireless remote to unlock their home, or even use their phone to unlock their door.
• Smart Security Cameras – Another trending smart home technology product in the security category are cameras.  There are many companies that offer smart security cameras that allow a homeowner to easily setup and monitor their home from their smartphone or tablet.  Many large companies, such as Time Warner, are even offering smart security systems for their subscribers.  Recently while selling a vacant home, the sellers had a smart security system that allowed them to monitor their home from afar.  This is a great way to increase the comfort level that a vacant home is remaining safe.
• Smart Home Alarm Systems & Sensors – Alarm systems and sensors have been around for decades but often required installation by a company and typically would come with a hefty monthly fee.  There are now dozens of companies that offer smart home alarm systems and a variety of sensors for homeowners.  One of the newest and most unique smart home sensor that has become popular over the past year has been smart home water leak sensors.  These water leak sensors are placed on the floor with no wires and setup required and alert a homeowner when a water leak is detected.  This is very important because water leaks can damage a home significantly.
• Smart Home Detectors – The importance of smoke and carbon monoxide detectors when selling a home cannot be overstated.  They are even more important when living in a home though.  Another smart home technology product that is becoming more and more popular are smart home smoke and carbon monoxide detectors.  There are several companies that allow a homeowner to be notified on their smartphone or tablet if their smoke or carbon monoxide detectors are going off.  This is obviously important so the proper authorities can be notified if a homes smoke or carbon monoxide detector is going off.

Final Thoughts

As you can see, smart home technology has changed the real estate industry.  It has affected the amount of time it takes a home to sell, home values, and many other facets of the industry.  Since there are so many smart home technology products and categories, it will not be long before every homeowner has at least one smart home technology product.

If you haven’t jumped on the smart home technology bandwagon yet, don’t wait because it’s coming quickly.  Homes that are equipped with smart home products will only continue to have a leg up on their competitors when it comes time to sell.

Other Smart Home Technology Resources

• 9 Smart Features That Can Improve The Value Of A Home via Paul Sian
• Does Home Automation Affect Home Values? via Selling Warner Robins
• Smart Home Date In Real Estate Sales via Realtor Magazine

Smart home technology in Rochester NY has been increasing in popularity over the past couple years.  Over the past couple years, Rochester NY homes with smart home technology have seen an advantage over homes without these smart products.  If you’re wondering what impact smart home technology products may have on your Rochester NY home, contact me. I’d love to help you evaluate which smart home products may provide an increase in your homes value.

About the authors: The above article “How Has Smart Home Technology Impacted Real Estate?” was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.

We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.