Do Smart Home Features Increase Home Value?
Smart home technology is growing rapidly, and global consumer spending on smart homes systems is expected to exceed $191 billion by 2028, according to Strategy Analytics. By 2028, 550 million homes worldwide, or 24% of all households, will have at least one type of smart system installed.
According to Tech Jury, 81% of consumers say they are more likely to purchase a new home that has smart technology and 43% of Gen Z homebuyers said smart home capabilities were highly important, whereas only 15% of Baby Boomers said the same.
What Qualifies As A Smart Home?
To qualify as a “smart home” the home should be equipped with “network-connected products (via WiFi, Bluetooth or similar protocols) for controlling, automating and optimizing functions such as temperature, lighting, security, safety or entertainment, either remotely by a phone, tablet, computer or a separate system within the home itself.”
This comes from CNET, who recently partnered with Coldwell Banker to develop an industry standard.
The home needs to have either a smart security feature that controls access or monitors the property, or a smart temperature feature. It should also have at least two features from this list:
Dish Network has a Smart Home Setup Guide if you want to learn how to add these features to your home.
What Qualifies A Feature As Smart?
With plenty of home products to choose from, here are a few of the key elements that qualify a product as “smart”:
A smart home includes various devices connected to a network, often via Wi-Fi. Common smart devices include smart thermostats, lights, locks, cameras, doorbells, speakers, appliances, and more.
Smart homes use automation to perform tasks automatically or based on specific conditions or schedules. For example, lights can turn on and off based on motion sensors or schedules, thermostats can adjust temperatures based on occupancy or preferences, and blinds can open and close with the rising and setting of the sun.
Homeowners can control and monitor smart devices remotely using smartphones, tablets, or computers. This allows for real-time adjustments and monitoring even when you're not at home.
Many smart homes incorporate voice assistants like Alexa, Siri or Google Assistant, allowing homeowners to control devices through voice commands.
Smart devices from various manufacturers often work together seamlessly within a smart home ecosystem. This is facilitated by common communication protocols and platforms like Apple HomeKit, Google Home, or Amazon Alexa.
Smart home security is a critical aspect. It includes features like smart locks, video doorbells, motion-activated cameras, and security systems that can be monitored and controlled remotely.
Smart homes often prioritize energy efficiency. Smart thermostats optimize heating and cooling, and smart lighting systems reduce energy consumption by adjusting brightness based on natural light and occupancy.
Home entertainment systems, including smart TVs, speakers, and streaming devices, can be integrated into a smart home for seamless control and automation.
Health and Wellness
Some smart homes incorporate health and wellness features, such as fitness trackers, health monitors, or even air quality sensors to enhance homeowners well-being.
Data and Analytics
Smart homes can collect and analyze data about energy usage, device activity, and more. This data can help homeowners make informed decisions about their home and lifestyle.
Does a Smart Home Increase a Home’s Value?
Smart home technology can definitely add to market value. Appraisers make what they call “adjustments” when they compare tech-enabled homes with similar but tech-deficient houses. Smart homes command higher prices and may be easier to sell as a result.
According to Arizona Appraiser Steve Leavitt, "While smart home technology can add to the value of your home it is important that the type and extent of the automation does not become an over improvement for the home being upgraded. For instance, full home automation in a small starter home in an inexpensive area may be something a potential buyer likes but might not be able to afford or be willing to pay for."
The key is having smart products installed and functioning before you list your home, because most buyers don’t want a pre-wired home that still needs products installed.
Other Ways To Increase Home Value
If you have time for additional home projects, lighting can be used to not only make a property more aesthetically pleasing, but it can also work alongside the current structure to improve the space in terms of usability and functionality and can bump up the value of your property.
In addition, these inexpensive home improvements can really pack a wallop.
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