The digital revolution is changing our homes. Smart home technology is now a top feature for people looking for modern comforts and better safety. By 2028, people worldwide will spend over $191 billion on smart home systems, with a quarter of all homes already having them.1 Tech Jury notes that 81% of buyers prefer homes with smart tech, especially Gen Z buyers. Only 15% of Baby Boomers feel the same.2
Let’s learn what a “smart home” is and how its features can boost a home’s resale value. CNET, working with Coldwell Banker, has set a standard. This standard includes products that connect to a network. These products control, automate, and optimize your home’s temperature, lighting, security, and entertainment from afar or at home. Understanding what makes a home smart and what buyers want helps homeowners make their houses more desirable.
Key Takeaways
- Smart home technology can increase a property’s resale value by 3-5%, translating to a potential $12,000 to $20,000 increase on a $400,000 home.
- Fully integrated smart home systems are more valuable to buyers than pre-wired homes that require additional installation.
- Factors like location, property type, and the level of smart home integration influence the resale value.
- Strategic upgrades that prioritize energy efficiency, security, and convenience can help maximize a smart home’s resale potential.
- Highlighting a home’s smart features and functionality in listings can attract tech-savvy buyers and command higher prices.
Introduction to Smart Home Technology
To be a “smart home,” it must have connected gadgets for managing things like light and security. You can control these from anywhere with your phone or a similar device.3 For it to qualify, CNET says it needs smart security or temperature settings. Plus, two other features from a list that include things like smart TVs and fridges.
What Qualifies as a Smart Home?
A “smart” product means it’s linked to others, can be automated, and you can control it from afar. It’s also secure, saves energy, and mixes with other systems. Such systems can be pricey, especially those with wiring. They make homes more valuable but are expensive to set up.3
Key Features of Smart Home Devices
A fancy, wired smart home setup can be very costly.3 Fully automating a big house can run up to $15,000.3 Yet, the average to make your house smart is less than $800. Luxurious homes with all features can be over $100,000.3
Devices like smart thermostats and door locks not only add value but also charm buyers.1 Adding smart tech to your house’s security and temperature can make it a top pick for buyers.1 Smart homes are seen as advanced and appealing to buyers.1
Solar panels cut energy costs and help the planet, making homes more desirable.1 Smart locks increase security and make daily life easier.1 Smart lights save energy, cutting bills.1 High-impact tech, including solar panels, can increase your home’s worth.1 While not all smart items do much for resale value, some, like solar panels, really make a difference.1
The Growing Popularity of Smart Homes
More people are wanting smart home tech, with 81% saying they’d prefer a new home with it.4 The young ones, Gen Z, find smart features extra important, with 43% feeling this way.4 This is way more than the 15% of Baby Boomers who agree.4 As more millennials and Gen Zs buy homes, the need for smart tech will keep rising.4
Consumer Demand for Smart Home Features
The smart home market was worth $80 billion in 2022. It’s supposed to hit $338 billion by 2030.5 There will be nearly 70 million smart homes in the U.S., predicts a Statista study.5
This growing trend shows 77% of home buyers want smart tech. And 90% of millennials are ready to pay more for it.6
Generational Preferences for Smart Home Technology
Different age groups have different views on smart homes. While 43% of Gen Z loves smart features, only 15% of Baby Boomers do.4
But, a solid 65% of Baby Boomers would spend more on an IoT-ready home. This shows they’re also warming up to smart tech.6 As new, tech-friendly generations buy more houses, the smart tech trend will only grow.6
Smart Home Resale Value
Adding smart home tech in a house can bump up its resale price. This is because appraisers adjust home values when they compare smart homes to those without tech.7 Arizona appraiser Steve Leavitt notes that you might sell a smart home easier and at a higher price.
Appraisers’ Adjustments for Smart Homes
Experts think upgrading to smart tech can make buyers pay 3% to 5% more for a home. They do this to avoid the cost of adding the tech later.7 For example, a $400,000 valued home could go up by $12,000 to $20,000 thanks to smart upgrades.7
Potential Increase in Home Value
When appraising a home, appraisers consider its smart tech. Smart homes generally sell for more, attracting more buyers.7 Also, simple upgrades like better lighting can add to a home’s value.7
Factors Influencing Smart Home Resale Value
There are several important factors that affect how much a smart home sells for again. Where the house is and what kind of house it is make a big difference. These things change how much buyers think a smart home is worth.8
Location and Property Type
Arizona appraiser Steve Leavitt says how fancy a smart home is can be too much depending on where a house is and what type of house it is. A small, cheap house in a quiet area might not get much extra value from being fully automated. But a big, expensive house in a busy city would likely see a boost in its value.8 This is because people in cheaper areas might not see the point in paying more for smart features.
Level of Smart Home Integration
How much the home is already set up as a smart home is key too. Houses with a system that’s ready to use are more attractive to buyers. This is compared to homes that are only set up to be smart but need extra work and money.8 Buyers prefer homes where they can enjoy smart features right away without doing extra work.
Knowing these factors lets homeowners decide how much and what kind of smart tech to add. This way, they can improve their home’s future selling price.9
Benefits of Smart Home Technology
Smart home technology brings many benefits to your house. It enhances both the appeal and the value of your property. It does this by saving energy, cutting costs, and making life easier and safer. These perks can make your home more attractive to buyers and boost its resale value.1
Energy Efficiency and Cost Savings
With smart technologies, you can lower your home’s energy use. For instance, smart thermostats keep your home at ideal temperatures without wasting energy. This, and other smart systems, can save you a lot of money in the long run.1
Convenience and Remote Access
The ease and the ability to control your home when you’re away is very appealing. Using your phone or talking to your voice assistant, you can manage lights, temperature, and even security. This not only makes life more convenient but also safer.10
Enhanced Security and Safety
Smart security is all about peace of mind. It includes smart locks, doorbells with cameras, and motion-sensing security cameras. These features scare off intruders and let you watch over your place from anywhere. This keeps you, your family, and your possessions safe and sound.10
Showcasing the benefits of smart home tech can make your property stand out. It appeals to buyers and could mean a higher price when selling. So, highlight how your smart home stands above the rest.110
Preparing Your Smart Home for Sale
When getting a smart home ready to sell, it’s key to show off its features in listings.10 Smart home buyers are on the rise, with 77% showing interest and 81% wanting it pre-integrated. This makes modern upgrades important for boosting your home’s value.10
Highlighting Smart Home Features in Listings
First, make sure your property listings shine a light on its smart capabilities. Talk up how energy efficient, secure, and convenient it is.1 Features like smart thermostats, smoke detectors, and lights, plus solar panels, are extra selling points.1 Don’t forget unique features, such as automated shades or a movie theater setup, which appeal to tech lovers.10
Demonstrating Smart Home Functionality
When showing, demonstrate how the smart home works.1 Smart tech is now more budget-friendly, bringing benefits in the short and long run.1 Show how easy it is to manage the systems via voice or apps.10 This gives buyers a clear picture of the home’s perks.11
By highlighting and showing off your home’s tech, you can draw in buyers who appreciate it.10 Investing in smart features can pay off by meeting the growing demand in the market.10
Smart Home Technology Trends
The world of smart home tech is always changing. New trends are making our homes smarter and more connected. Voice control and virtual assistants, like Alexa, Siri, and Google Assistant, play a big part. So do home automation and the Internet of Things (IoT).
Voice Control and Virtual Assistants
Using your voice to control your home, thanks to virtual assistants, is getting more and more common. With this tech, you can change the lights, set the room temperature, manage home security, and even pick a movie, all with your voice. As the ability to understand our natural language gets better, adding virtual assistants to our smart home setups will be easier and more natural.
Home Automation and Internet of Things (IoT)
But it’s not just about talking to control your home. Smart homes are also seeing big improvements in other areas. Home automation and IoT let us connect and control many parts of our homes, from lights and heating to security and entertainment, all through one system or an app on your phone. This makes everything work together better, making our homes not just smarter but also more efficient and convenient.
And this is just the beginning. Smart home tech is set to grow even more. As we see new developments in voice control, virtual assistants, and how everything in our homes works together, our lives will get easier and our homes more valuable.
Return on Investment (ROI) for Smart Home Upgrades
It costs between $2,000 to $6,000 to make a home smart. Sometimes, it can go over $10,000 for big changes.12 Making these upgrades wisely can make buyers pay 3% to 5% more for a house. This is to avoid adding smart devices themselves later.12 For a home worth $400,000, adding smart tech could raise its value by $12,000 to $20,000. That’s a good return for the house’s owners.12
Studies show that making a home smart gives back 60% of the money spent.13 This ROI is similar to doing up the kitchen (72% ROI), adding a new bathroom (60% ROI),13 or installing energy-saving windows (68% ROI).13 By adding the right smart features, house owners can make their property more valuable in today’s wired world.
The return from smart home upgrades might change based on where the house is, what type it is, and how much tech is included.14 Talking to a local pro or real estate agent can show homeowners the smartest ways to boost their home’s value.12
Smart Home Technology and the Housing Market
The housing market is changing fast. Smart home technology is now a big deal for people buying and selling homes.1 Younger buyers, like millennials and Gen Z, are looking for homes with smart features. These features are now a top selling point for many.1 Smart home tech is a big advantage in a seller’s market. Such houses can sell for more because buyers find them attractive.1
Appealing to Tech-Savvy Buyers
Tech-savvy buyers love smart home features. Especially the younger crowd.1 They’re ready to pay extra for the latest smart tech. They see it as convenience and sign of fresh updates.1 Sellers do well by showing off a home’s smart capabilities. That way, they can aim for higher sale prices.
Competitive Advantage in a Seller’s Market
In a seller’s market, having smart tech gives sellers an edge.1 Buyers are attracted to these modern homes because they save them the trouble of setting up the tech themselves.1 Plus, smart features hint that a home is in good shape. This makes it even more appealing and valuable.
Smart Home Resale Value
Adding smart tech can boost a home’s value by 3% to 5%. This means a potential $12,000 to $20,000 more for a $400,000 home.7
Potential Price Premiums
The value increase varies based on where the home is, its type, and its tech level.7 Houses with all smart systems working fully before sale are worth more. This is compared to those needing extra setup, even if they’re pre-wired.7
Factors Influencing Smart Home Resale Value
Steve Leavitt’s report from Arizona shows smart homes can sell at higher prices and be easier to sell.7 But, how much of a smart home is set up really matters. Homes fully decked out before listing are more valuable than those just pre-wired.7
The home’s location and type also play a big role in smart tech resale values. Leavitt warns against going all out on smart features in a small, inexpensive home.7 Buyers in these areas may not want to pay for such high-end features. They might find it too expensive or not as important.7
Maximizing Your Smart Home’s Resale Potential
To get the most from their smart home’s resale, owners should upgrade key features.15 Focus on making the home more energy efficient. Add smart thermostats, lights, and appliances. These improve the home’s value and appeal to green-minded buyers.15 Also, buyers love seeing energy efficiency features in listings. This shows the home cares about the planet and saving money.
Strategic Smart Home Upgrades
When selling a smart home, adding certain upgrades can boost its sale price.15 A central integration system is a great start. It makes the home stand out and increases its worth.15 Also, think about smart security, thermostats, and appliances. They attract buyers interested in the latest tech.15
Highlighting Energy Efficiency Features
Energy-saving tech in a smart home is a big draw for buyers who care about the environment.15 Mention these green features in your listing. It proves how sustainable and money-saving the home is.15 Smart thermostats, lights, and appliances show the home saves on energy. This boosts its resale value.
Conclusion
Smart home technology is getting more popular. Homes with smart features sell for higher prices.1 Homeowners should learn about smart homes. They can increase their home’s value by adding these features.16
Smart homes are more energy-efficient and secure. They attract buyers, especially those who love technology. Adding smart features can set your home apart.1 It can make your home sell quicker and for more money.16
Smart technology is becoming more affordable. This means homes with smart features are worth more. By choosing the right smart upgrades, your home will stand out. You’ll attract buyers who value energy savings and safety.1 You can sell your home for a better price, now and in the future.16
The future of smart homes looks bright. Owning a smart home can give you an edge in the real estate market. Keep up with the latest smart trends. This will help you make choices that make your home more valuable.16
FAQ
What is considered a “smart home”?
A smart home is equipped with devices that connect to the internet. These include products such as lights, thermostats, and security systems. You can control them with a phone, tablet, or computer from inside or outside your home.
What are the key features of smart home devices?
Smart devices let you connect, automate, and control your home from anywhere. They offer voice and remote control, work together with other gadgets, and provide security and energy savings. They also add fun features for your entertainment.
How popular are smart homes among consumers?
Figures show that many people are interested in smart homes. 81% of buyers prefer new homes that have smart technology. And among Gen Z buyers, 43% find smart home features very important. This is in contrast to only 15% of Baby Boomers.
How much can smart home technology increase a home’s resale value?
Upgrading to smart home tech might make buyers pay more. Estimates say they could go for 3% to 5% over the original price. For a 0,000 home, this is an extra ,000 to ,000 that people might be willing to pay.
What factors influence the resale value of a smart home?
The key is to have a complete smart home system when you sell. It’s better than just having wiring and needing more gadgets. The home’s location and type also affect its resale value.
What are the benefits of smart home technology?
Smart home tech can lower energy use and save money. It also makes life more convenient, allows for remote control, and improves security and safety.
How can homeowners prepare their smart home for sale?
To sell a smart home, highlighting its features is essential. Show how the tech works to those interested in buying.
What are some emerging trends in smart home technology?
New trends include using voice commands and virtual assistants. Home automation and the Internet of Things are also growing.
How much does it cost to “automate” a house?
Automating a home might cost from ,000 to ,000, or more for larger improvements. Yet, these upgrades can raise a property’s value, making it worth more to buyers.
How can smart home technology provide a competitive advantage in the housing market?
In a competitive market, smart homes stand out. They can be more attractive to buyers, possibly leading to higher selling prices.
Source Links
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- https://bethcaldarello.com/blog/top-factors-that-influence-home-resale-value
- https://www.housingwire.com/articles/how-smart-home-technology-increases-property-value-in-a-challenging-market/
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