Cast your mind back to the ’90s when home automation was still very much the preserve of sci-fi movies.
Are you turning off your lights with a few sharp words?
Are you locking or unlocking your door with a mini-computer smaller than a 90s pager?
Answering your doorbell when you’re not even at home?
All unthinkable, yet now a commonplace and pedestrian part of everyday life a couple of short decades down the track.
If you’re a convert to home automation, you’ll be only too aware of the benefits it brings. Convenience and security are the twin pillars upon which domotics is constructed as some of the statistics below will bear out.
How has the explosive growth of smart home technology impacted the real estate industry?
What we’ll look at today is how smart technology extends far beyond a smart speaker for streaming music or organizing your day.
Before we fire into a few statistics, we’ll briefly highlight core areas where smart tech meets the real estate industry head-on.
5 Ways Smart Home Technology Has Changed The Real Estate Game
- Smart Home Tech Can Increase Value of Investment Properties
- Automated Homes Can Attract More Tenants or Buyers
- Fully-Laden Connected Homes Often Spend Less Time on The Market
- Virtual Reality Has Transformed Marketing Real Estate
- The Emergence of New Smart Developments
1) Smart Home Tech Can Increase Value of Properties
Potentially the most significant single influence of home automation on real estate is the way the price of a house for sale can be boosted.
If you think about any real estate listing, the features and amenities on offer are vital when determining how much a property will fetch on the market. According to Chad Curry, MD of the National Association of Realtors (NAR), when a home is smartened up, it can fetch 5% more than dumb alternatives in the same neighborhood.
A 2015 CNET-Coldwell Banker survey yielded some interesting statistics. Although easy to remove smart wireless devices when moving home, 66% of those surveyed said they would gladly leave these gadgets behind to expedite a sale. In this same survey, fully 81% of those already invested in smart home tech said they would be more likely to buy a home if it was automated. Beyond this, 71% said they were specifically seeking a home with smart home technology already onboard.
Pricing trickles down beyond sales to impact both investment properties and rentals.
2) Automated Homes Can Attract More Millennial Tenants or Buyers
As millennials start entering the property market in droves, this is a market homeowner looking to sell or landlords looking to rent ignore at their peril.
A Home Advisor survey showed that 77% of millennials had purchased a smart device compared to just 50% from the previous generation and a paltry 25% of over 55s.
What does this mean, though?
Well, since it’s projected millennials will own 30 million homes by the end of next decade, the extent to which they are driving smart home tech is impacting the real estate industry.
Millennials are far more likely to buy or rent a home when it’s kitted out with the tech that attracts them.<br>
3) Fully-Laden Connected Homes Often Spend Less Time on The Market
If you’re selling a home, the last thing you want is a long hiatus when it sits on the market and hamstrings your next move.
Remember, 81% of smart device owners admitted to being more likely to buy a home if it was already automated and shows that it’s not just the price that can be influenced but also the amount of time it takes to sell your home.
Now, many variables come into play when selling a house, many entirely unrelated to smart devices. That said, if you’re finding it awkward to shift your property, you might be amazed at the impact of a few gadgets.<br>
4) Virtual Reality Has Transformed Marketing Real Estate
While perhaps more tangentially linked to smart home technology, virtual reality has altered the landscape for realtors looking to shift homes, whether for sale or rent.
Virtual tours offer potential buyers the chance of guided walk-throughs with 360-degree video and an immersive, interactive element.
When properties are still under construction, VR can help with staging and visualization. Trying to imagine what an empty shell will look like can be challenging. Virtual reality can fill in the blanks correctly.
10 Smart Home Devices That Most Improve The Value of Your Home
Smart devices are capable of increasing the value of homes for sales; these ten areas offer the maximum return on investment:
- Smart Locks
- Smoke Detectors
- Home Security System
- Smart Security Cameras
- Covert Cameras
- Smart Appliances
- Automated Garage Door Openers
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