Most people believe that making a home smarter can increase its market value and thus make it faster to sell because of the appealing features that smart gadgets provide.
After all, the design and style of a home are among the leading factors that drive people to purchase a house. On the other hand, convenience from smart devices is also opted, especially by people who want to be able to accomplish daily tasks and routines with the touch of a button.
Do Smart homes add value and sell faster? Making a home smarter by adding smart features is among the five best (and easiest) ways to increase home value. While having a significantly higher upfront cost, smart homes add value and sell faster than traditional homes due to the spectrum of advantages they offer.
In this article, we will unravel the reason why smart home devices add value and sell faster. I also included a list of the top smart features that most home buyers want to see in a smart home.
Aside from that, I have explained deeper in this article details regarding if smart homes are an excellent investment, along with the downsides that you may encounter along the way.
Smart Homes Explained
For those who are not oriented about smart homes yet, for a home to be considered smart it must be a residence or a house that is equipped with smart devices that allow remote navigation. A smart home is intended to provide maximum convenience, improve the quality of life, and increase efficiency for the people who are residing in it.
When living in a smart home, expect to feel the ease that you can never experience in any standard home. From turning off lights using voice control to locking the door in just one tap, you can get the most out of your time and energy for the tasks and devices that matter most to you.
Does Making a Home “Smart” Add to Its Overall Value?
Today, most people in the home buying market are aware of smart devices that provide wide-ranging benefits- especially in terms of functionality and convenience. For this reason, many home buyers are looking forward to owning a home with such things – smart lights, smart security systems, smart plugs, etc.
They prefer houses that are pre-installed with smart technology rather than having to install it themselves. With the installation of smart devices, one can increase a property’s value by around 5%.
A smart home shows more appeal to home buyers because of the advanced features they offer. These features can result in better productivity, convenience, security, safety, and a higher quality of life. The number one target of home buyers is to make the most out of the money they will spend when acquiring a property.
Since a smart home provides numerous advantages compared to a standard house, it is more likely to be chosen by home buyers. For this reason, it will drive them to purchase the property more quickly.
Nowadays, smart homes are much sought-after. Knowing this, you can expect that investing in this venture will give you a higher ROI in a shorter period compared to standard homes.
If you observe property developers, they have recently emphasized the smart capabilities of a home as their over-the-top home selling point, especially with the new developments of smart technology. This is because many people are demanding for the ease and convenience that comes from features that are innate with smart devices.
The smart capabilities of smart homes create a considerable gap in between traditional or modern homes (without smart devices) because of their impressive advantages. Aside from that, most smart devices promote energy efficiency, which is another appealing factor as to why many home buyers are opting for smart homes.
Not only is energy efficiency critical for the care of the environment, but it reduces spending through electricity usage.
How Do Smart Devices Increase Home Value?
So how, precisely, can utilization of various smart devices improve the value of a property? Smart home devices add security, safety, comfort, convenience, energy efficiency, and value through time among other ways.
For a deeper look into these topics, I have listed some of the primary reasons why people are looking at homes with pre-installed smart technology.
Security and Safety
As mentioned earlier, smart devices help to provide stronger protection to a home. For most people, safety and security is the most important determining factor that goes into buying a property, despite the concern of if it is for residential or commercial purposes.
Smart devices such as door locks, video doorbells, security cameras, and others can improve a home’s security system remarkably, providing control to the homeowner and power over one’s place of residence.
According to a study conducted by IControl Networks, 90% of the people who responded report that family and home security is the primary reason why they establish a smart home or buy one in the first place.
A house that is pre-equipped with smart devices is more likely to appeal to homebuyers than those that utilize traditional equipment.
Through the installation of a smart lock, you have equipped your home with a feature that is much more difficult to break into or hack.
With the installation of smart lights or smart plugs, you are able to make these features turn on and cause an appearance that you are home even if you are away for whatever reason. These are just a few examples, but it is easy to see how smart devices would provide simple (as well as advanced) security systems for your home.
Comfort and Convenience
Most people believe that smart home technology offers an even more comfortable and convenient lifestyle. It may be entertainment technologies like smart TVs and built-in headphones, or the capability to monitor lighting as well as blinds using your smartphone.
Either way, people are more often looking for instant and convenient benefits that smart home technology can provide.
Smart homes create hype in the home buying market, and the technology is continuously growing. Aside from that, other industries are catching up and adjusting to what consumers want. While opting for simple smart devices, people still want to get visible benefits.
Most people are adopting at least one smart device, including security devices, thermostats, speakers, lighting control, and many more. Once you have made the switch to a smart device, it is difficult to turn back- or to not continue to invest in new smart devices.
Another reason why smart home devices increase home value is that the use of several smart devices lets you save energy consumption- including smart lighting, smart plugs, smart appliances, and smart thermostats, among others.
If you compare a smart home’s electric consumption to other homes, you will be able to show your potential buyers that the house is worth the price, especially with long-term value.
Smart homes are residences with pre-installed smart devices that are capable of automation. Aside from the fact that most smart devices can switch off automatically when not being used, they also come with energy-efficient components.
These usually require less energy compared to standard devices. If homebuyers become aware that they will be able to cut a skyrocketing electric and water bill every month by choosing a smart home, it will likely drive them to make a purchase.
With smart homes, people can save more money by reducing energy consumption. But aside from that, smart homes can also help you to save time. For example, you no longer need to do particular tasks for yourself such as starting the oven, adjusting the temperature in your home manually, or remembering to lock the door.
With the wide-ranging automation that smart devices provide, you can increase your productivity and spend more time with other essential things like eating dinner rather than preparing it, or even using the time saved to be with loved ones.
Smart homes allow you to avoid frustrations and only focus on essential things in life. It is also one of the reasons why smart homes claim to be capable of improving the quality of life.
Smart Home Features That Can Increase Home Value
If you are planning to sell a house faster and with a higher market value, below are some of the smart features that you must consider implementing into your home. You can also check out the items that you may want to include next, assuming that some of these smart gadgets already exist in your home.
Smart Home Security Camera
According to various polls, most home buyers are asking about the security aspects of a home. Security is undeniably one of the most essential aspects to consider when buying a house. A secured home provides a great sense of peace and control. It will also allow you to live with decreased anxious symptoms related to your surroundings.
Today, you can find smart home security cameras that allow 24/7 monitoring anywhere in the world. Using your smartphone, you can view the live footage of all parts of the household where cameras are installed.
Additionally, smart locks add security through their advanced technological performance. There are several ways to ensure home safety, and smart home security systems are the way to go.
Selling a house that is equipped with standard appliances sells 11% less compared to a smart home filled with high-end smart appliances.
Home buyers today are looking for a home that is not only cozy but extraordinarily functional. This is the reason why it essential to choose smart appliances that arrives with the most helpful and convenient features.
Some of the best smart appliances that you can include in a smart home are a smart refrigerator, stove, and rice cooker. Other smart appliances like a water heater, coffee maker, microwave oven, and others are worth including.
Another feature that every smart home must include is smart lighting. Of course, a smart home is not complete without that light that automatically shuts off when you are not around and switches on when it senses that you are there.
With the advancement of technology, most smart lighting systems today are upgraded with features that make it even more convenient to use. For example, most smart lights now offer different options, including dimming, changing color, scheduling, voice command, and so much more.
You can even set zones to where your lights will dim or turn on as you arrive or leave your home “zone”.
A house with a smart hub can easily attract a home buyer’s attention. This device makes it possible for you to make devices work without breaking a sweat, making it an essential component of a smart home.
When smart hubs are connected with external devices or appliances in a house, you can use its accompanying mobile app to make things work even without moving from your current position. With a few pushes of a button or voice command, you can easily heat water, switch the lights on, and so much more.
Spare keys can be subjected to being forgotten, stolen, and can be duplicated for unauthorized use. For this reason, most home buyers are attracted to properties with smart locks, especially since they provide advanced security features such as automatic locking and unlocking.
This smart device strengthens a home’s security by eliminating the traditional keys with keyless door locks.
According to a smart home marketplace survey, deployed by the Coldwell Banker Real Estate in the year 2018, at least 63% of individuals who are looking to buy a home are asking for properties equipped with smart locks. This goes to show that this smart feature can significantly add value to a home.
Smart Smoke Detectors
Another smart device that can increase home value is smart smoke detectors. Aside from smart locks and smart home cameras, smoke detectors with smart capabilities are one of the essential devices that can keep a home safe and secure.
Smart smoke detectors mainly detect carbon monoxide or smoke which then allows it to extinguish the fire to an exact location. This feature makes 75% of home buyers want a smart home with this smart smoke detectors pre-installed in them.
The safety and security that a smart smoke detector adds cannot be topped by a standard smoke detector.
Instead of curtains, many modern homes are now adorned with Venetian blinds. Notably, blinds or shades are much easier to maintain and are usually long-lasting.
Smart homes, on the other hand, are mostly equipped with smart blinds. According to brokers, this simple, smart feature pays off in terms of convenience, making most home buyers interested in the house.
Smart shades allow the user to raise or lower them with just the touch of a button, or they can be set to automatically adjust according to your scheduling system.
You do not have to make extravagant changes in a house to increase its value. Making small changes that can add to its convenience, style, and appeal can contribute to its overall value.
Most home buyers are also interested in smart homes with smart thermostats. Aside from security, most home buyers are also opting for a smart feature that will allow them to manage the energy consumption inside the house.
A smart thermostat offers smart cooling, heating, as well as utility control that are all considered as features with a high return on investment (ROI). According to a 2017 survey conducted by MFE Concept Community, most home buyers highly consider homes that can reduce the cost of using electricity.
Most smart thermostats also feature indoor air quality control. If the property is located in areas that deal with air quality issues, including excess moisture, stale air, and airborne pollutants, having a smart thermostat can assure home buyers of fresh and cleaner air.
Aside from security and convenience, all home buyers significantly consider the health of their family before making a purchase. So make sure to install a smart thermostat with efficient air purifying performance.
Smart Voice Control
Nowadays, you can find different smart devices that are integrated with Artificial Intelligence (AI) that accept voice commands in order to complete tasks or respond to triggered phrases. Some of the most popular AIs today are Amazon’s Alexa, Apple’s Siri, among others.
With smart voice control, you can have a smart device work by just asking it to do so. For example, switch off the lights in your room by saying, “Good night Alexa.” Or, “Alexa, please turn off the lights.” Looking for smart devices that have smart voice control will add to the convenience factor that contributes to your smart home’s value.
A home with smart speakers is another one of the best ways to increase home value. These devices allow syncing between TVs, speakers, PCs, as well as smart home security systems to hear a video doorbell.
A smart speaker is described as a wireless speaker that accepts voice command through an integrated virtual assistant. You can ask it to play your recently selected playlist, ask what the weather is, and even have it read a poem for you.
Aside from that, you can also connect it to your smartphone to access your favorite songs in your phone’s storage. Smart speakers come with a different set of features that range from basic to advanced, so you should expect differences in the way the devices work.
From indoors to outdoors, smart homes are equipped with features that can make the entire home convenient, functional, and truly valuable. According to manufacturers, smart sprinklers allows homeowners to reduce cost from their annual water bill by up to fifty percent.
Aside from that, smart sprinklers keep your yard healthy and thriving by distributing water to the entire area automatically.
Unlike the old-fashioned way of watering your plants and the grass in your yard, smart sprinklers can allow you to be away for a while without arriving with dead plants. You can set the time when it switches on or off according to time or weather.
Do Smart Homes Sell Faster?
Various surveys show the high demand for home automation today that smart homes can provide.
A study conducted by Vivint Smart Home and Coldwell Banker shows a new perspective on what and how smart products affect the decisions of most home buyers. One report indicates that voice control is a smart feature that American consumers desire the most.
Smart homes that are integrated with Amazon Echo or Google Home have a higher possibility of selling because they attract buyers more easily. It can drive more possible buyers, therefore, decreasing the time of its stay on property listings.
People of all different generations are opting for the functionality that smart home offers. Starting from Millennials, generation X, up to baby boomers, many are interested in homes equipped with smart devices. Studies show that 26% of US consumers have experienced using voice-controlled applications as well as devices.
The reason why many people like this smart feature the most is because they find it practical and intuitive, especially its fool-proof User Interface, location flexibility, and hands-free control. Aside from that, most people are also interested in smart entertainment systems such as smart TVs, speakers, and so much more.
The secret to selling a home faster is to make sure that it can provide what most buyers need. Since most people nowadays want to experience maximum security, convenience, and comfort, add essential smart devices, and establish it as a smart home in order to sell your home more quickly.
Is Smart Home A Great Investment?
Establishing a smart home may cost you a substantial amount of money at first. But since smart devices add significant value to a home, it will increase the chances to sell faster and at a higher price.
If you are concerned about upfront costs, only add the most sought after smart devices to ensure that your smart home devices can capture the attention of homebuyers.
Also, make sure that all smart devices you include come with high-quality performance. Failing to do so may put your investment to ashes, especially if you opt to install low-quality devices that may easily overheat, leading to fire if not prevented for example.
The Cons Of Investing In A Smart Home
To increase your chances of success, it is also important that you know the downsides of investing in a smart home. Learning from the mistakes of others can help you to avoid making the same mistake in the future.
When establishing a smart home, you might encounter having broken smart lighting, especially if you purchase a low-quality unit. Most smart devices are unpredictable. So when they cease to work like they usually do, you can not expect to have them fixed again.
In short, you will have to repurchase another unit of the smart bulb. If this frequently happens in a smart home, you will spend a lot of money on maintenance before it is even sold. It is a good thing that you can find a lot of high-quality and long-lasting smart products on the market that are worth your investment.
Aside from that, most smart devices are also challenging to install. For this reason, you may have to hire a professional to mount them. The same is true even with smart devices that are manufactured by the most successful companies.
You may end up spending hours or days troubleshooting these devices if you install them without technical knowledge.
But just as mentioned earlier, smart devices are worth the investment since they can add value to a home. After all the hassles of establishing and maintaining a smart home, they sell faster, and you can set them at a higher price- increasing the value of both your money and time.
How much value do smart features add?
Based on consumer reports, the smart features of a home can increase a smart home’s resale value around 5%. For example, it can amount up to $15,000 if a smart home has a total value of $300,000.
Additionally, researchers also found that the first thing that home appraisers factor in is the value of smart devices. So if you add a higher level of smart features into your home, you can expect to have a higher amount return during the appraisal.
How much will I pay to wire a smart home?
Installing wireless mesh systems may cost around $300 to $600 depending on how big the residence is, including indoor and outdoor installation.
Aside from the installation, you may also pay for activation fees that will cost you about $200 to $500, as well as monthly payments between $35 and $75 depending on the subscription plan you choose.
What is Smart Wiring?
To establish a smart home, you need smart wiring, which is a system that integrates combinations of a wide array of wire types that are utilized around the house and combined into a single platform.
This smart home essential allows the installation of different smart home devices as well as sensors across the residence. It also offers an increased capacity to install more devices later on if you decide to do so.