Smart home technology is rapidly transforming the way we live in our homes, with smart refrigerators, smart entertainment systems and smart HVAC systems taking over our traditional appliances. Thanks to increasing demand, smart home technology is no longer reserved for the new generation of home buyers, it is becoming an integral part of every home, old and new, alike.
Whether you are looking to buy or sell your home or are thinking about investing in smart home technology for your home, it’s very important you understand how smart technology is changing the real estate market. A Coldwell Banker Real Estate Smart Home Market Survey found that nearly 50% of consumers say smart home technology is important for their current home or their next home purchase.
Smart home products have a huge impact on the resale price of a home. A home equipped with the latest technology will bring more value in comparison to a home that does not have smart home products. While it is difficult to calculate the exact dollar amount that smart technology can add to a home’s resale value, studies show that it is surely on an upward trend.
Smart home technology is changing the type of buyers that are potentially interested in a home. Many millennial home buyers are enticed by homes that have the latest products installed. Smart technology also appeals to those who are environmentally cautious, for it has multiple energy saving benefits. The increased security benefits that a smart home offers may also appeal a single parent, while the decreased costs of usage over a period of time appeal the economic minds.
Having new technology installed in your home opens it up to a wider audience and broader market demographics.
Amount of Market Time
While it is impossible to calculate the amount of time a home stays on the market before selling, studies have shown that a smart home may sell faster than a home that is not equipped with the latest technologies.
In the survey conducted by Coldwell Banker, 81% of buyers would purchase a house just because smart home products were installed. While additional factors such as pricing, location, availability and market trends play a role, smart home technology will impact the time a home stays on the market.
It can’t be said for sure as to how much impact on the dollar will a smart home have, but research and trends show that it is nothing, but positive.