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Even if you never plan on selling your home, there are major advantages to investing in smart home technology. From increased security and peace of mind, to energy conservation and convenience, smart homes are likely to impact the future of real estate. In addition, installing smart technology has the extra advantage of adding value to your home if and when you do sell.
Many of us will sell our home at some time, and smart technology can increase its worth. It’s good to know that the technology we use to improve our everyday lives can also be an investment that will pay off in years to come.
By the end of 2018, 45 million smart home devices were present in U.S. homes, and it’s forecast that more than half of American homes will be using smart devices by 2023. Whether it’s smart technology for entertainment, security, energy, or comfort, sales are expected to increase significantly.
Right now, a minority of homes are technically classified as smart homes. That means any home currently featuring smart technology offers unprecedented comfort and convenience to interested buyers. As smart technology continues to become integral to homes across the country, it becomes increasingly important for sellers to keep their homes up to date and boost their market value with the latest smart home technology.
The great thing about smart home technology is that most of it can be installed without the need to hire a professional, meaning it adds value quickly and yields a higher return on your investment.
Another advantage is that many devices can be applied to multiple purposes. Cameras and sensors can identify potential security breaches and send alerts to your phone when you’re out, or if you’re home they can sense your activity to appropriately adjust temperature or turn lights on and off.
Security and energy saving are two of the main benefits a smart home gives to its occupants. If and when you choose to sell, these benefits will be obvious to prospective buyers and are things all homeowners want. A further draw for buyers is that safe and efficient homes attract lower insurance premiums.
There are some standalone smart gadgets that are personalized by the user that are not likely to be left behind when the property is sold, such as Amazon Echo speakers. But smart technology that can remain part of a house when it’s sold will drive more interest in the property, and justify the value for home buyers. A perfect example is a smart security system.
Security systems have always been a source of value for homes on the market. Technology has enhanced home security systems to add capabilities far beyond sounding an alarm.
Smart home security offers solutions that are affordable, and can be easily installed to offer a range of benefits by incorporating motion sensors, built-in cameras, two-way voice communication, and water leak sensors.
Notifications are sent directly to a smartphone when the system detects activity or potential problems. Communicating all of these benefits to buyers could set sellers apart from others in the area.
Energy-saving technology is another big selling point in the real estate market. The size of the green building market in the U.S. expanded from under $5 billion in 2005 to over $80 billion a decade later, and energy saving is the number one reason people desire green homes.
Smart home technology can streamline energy use by monitoring a home environment and autonomously making changes that will save on heat, air conditioning, and electricity. Door and window sensors are a good example of smart home devices that are inexpensive, easy to install, and serve multiple purposes.
Homeowners can sign up to receive notifications to the app on their smartphone about doors or windows that are open or ajar. This is useful for safety purposes, and also for preventing energy waste.
Advanced automation platforms let homeowners tailor their entire home to their requirements. Selected lights can be set to turn off at sunrise, and smart thermostats can assess a range of specified conditions to adjust temperature.
Pre-programmed triggers prompt a smart system to take autonomous action. An example might be that ground floor lights are set to come on when the security system is armed and motion is detected. Outdoor lights could go on or off depending on specific conditions, such as the length of time a door has been open and how dark it is outside.
Beyond the extra convenience and security that attracts buyers to smart homes, detailed customization based on their lifestyle allows prospective buyers to feel like they’re buying a home rather than just a house.
People buying a new home are always looking for ways to reduce costs. The fact that they will have lower insurance premiums in their new smart home will only increase appeal. Insurers love to cover anything that has a low risk of payouts. A highly advanced smart system that monitors every part of the home is very attractive to insurers.
Creating a safe home is about two things: protecting the home from intruders, and preventing damage from disasters such as flooding and fire. In a smart home, security is taken care of by a system that includes interconnected elements like motion sensors, glass-break sensors, sirens, and HD streaming cameras. If anything unusual is detected by any part of the system, alerts are sent to the homeowner’s smartphone.
Alerts can also be sent about potential disasters. Smart smoke alarm monitors let you know if your smoke alarm is going off, and water leak sensors make you aware the moment any potentially dangerous water presence is detected.
Smart homes can even provide enough data to insurance companies to allow them to assess potential risks. If homeowners choose to share that data, their insurers can let them know about any changes that should be made to prevent disasters well in advance.
All of this means a greatly reduced risk of coming home to a catastrophe, a happier insurance company that will offer lower premiums, and higher value to buyers whose new smart home will give them peace of mind as well as savings.
Concerns about purchasing a home with used smart home technology can be addressed by communicating the customizable features of smart home security systems. Any system can simply be entirely reset to require brand new credentials and be configured with new automation settings for the new owner to create their unique smart home profile.
The next generation of homebuyers is beginning to perceive smart home technology the same way we perceive our handheld devices. It is an important part of everyday life.
In fact, as today’s consumers become more educated on the merits of technology, they’re becoming more comfortable with the prospect of inviting technology into their homes. Technology has evolved beyond passion to necessity, and the next generation of homebuyers will not only want, but they will expect the security and convenience that smart home technology can add to a home.
Many buyers will seek out these efficiencies on their journey to becoming a new homeowner, creating new opportunities for real estate sellers to capitalize on.
About The Author: The above article, “Exploring The Merits 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 in a simple home security system.
About Rochester’s Real Estate Blog: Rochester’s Real Estate Blog is owned and operated by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.
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