Are you wondering if smart homes are more valuable down the line? In 2019, there were over 16 million smart homes in Australia alone, proving how the nation has taken to the notion of owning smart home devices and apps. Statista estimates that over 47 million smart home devices will be installed by 2022. So there’s your answer!
Smart homes are homes powered by home automation. It's a methodology that lets the user communicate with the devices they set up using phone apps or wireless networks. The beauty of domotics is that it can automate any technology inside, from your lighting and thermostat settings to your curtains, gates and doors.
The reason the value of a smart home is going up is that it's more user-friendly, safer and convenient for the residents of the home, attracting potential buyers in droves.
In this post, we’re going to look at the factors that make your smart home worthwhile and how it fares against ordinary homes in real estate.
Does smart home technology increase home value?
In a word; yes. A study by Coldwell Banker back in 2016 explained what causes the value of a smart home to increase. The top three places homeowners would consider using smart home technology are the kitchen, living space and the front door.
Smart homes are valuable because they offer better safety, security, comfort, and energy efficiency. This means it benefits all age groups, from elderly residents to young children. For example, smart lighting can be activated to light up stairwells, passages, basements and attics, ensuring no resident trips or injures themselves while moving about.
And it's not just indoors. Even outdoor domotics can help you save energy and water. Take automatic sprinkler systems, for example. They can be activated to water your lawn according to the weather conditions and time (Your days of accidentally leaving the hose running are behind you!). Smart homes are also advantageous to those who live alone and with a disability because it reduces the amount of laborious activity one has to do around the house.
The value of smart home technology depends on
- The reasons different age groups buy it, i.e what draws them in.
- The purpose the devices serve.
- The rate of adoption
85% of Millennials, for example, stated that they are more likely to add smart home technology compared to 73% of Gen Xers and 67% of Boomers. Motivation is what separates the three groups. Millennials prefer convenience, while Baby boomers and Gen X-ers are sold on the value of smart home technology. A related study revealed that Gen X is the smartest generation of smart home buyers, with nearly 57% X’ers aged between 35 to 49 coming out as the top buying group.
Are smart homes more valuable in terms of demand?
Smart homes sell faster. In fact, 1 in 3, or 33% of sales associates report that homes with smart technology sell faster than those homes where domotics is absent. The reason for this is that smart homes have that inherent ‘wow’ factor to them.
Buyers are also getting better at identifying what they want to get out of their home, hence the question,
How smart is this home?
Here are some reasons smart homes are more valuable in terms of demand;
- Management control:
A smart hub makes it possible to manage multiple devices from a central point. At the touch of a button, voice command or app feature, you can adjust your thermostat, light switches and open and shut your curtains, blinds and doors.
Imagine the convenience and time you save when electronics and appliances are preset before your arrival. For example, preheating your oven in the kitchen in time for dinner. Or being able to review security footage and activity logs to make sure everything checks out.
Every resident in the house can set up an ambience according to how they feel. Feeling cold? Use smart radiator valves or the electric fireplace to warm the room near-instantly. If you’re walking up to your driveway with your hands full, you can configure your smart door lock to swing open automatically when you’re within a certain distance to make your entry indoors easier.
- Being away or out of town with peace of mind
A smart home is less likely to be burglarized because motion-activated lighting and cameras can pick up unusual activity for the times that you’re away. It discourages would-be intruders. Even if they do manage to break in, they’re going to have a hard time evading law enforcement, with security footage making it easier to identify them. Besides this, if your home has devices that detect gas and water leaks, it can prevent long-lasting damage from happening. For instance, detecting high carbon monoxide levels and opening up smart blinds, windows and doors to air the room out.
- Customization: a smart home automation system lets you customize your home according to your personal requirements. You can upgrade a light switch to an entire panel around the house, for example. Or you can lock your doors at night after a certain time, with a Yale Assure lock. This way, you do not have to get up from your bed to check if you locked your doors and windows.
- Utility Bills
Remember what I said earlier about energy efficiency? This is where you’ll see the magic in action! A smart home user will receive analytics and insights into which appliances and electronics are used, and how often. These numbers help you adjust and bring your consumption under control.
- How much more do smart homes sell for?
According to a Customer report, Realtor.com estimates a smart home’s resale value increases by 5%, averaging about $15,000 to 30,000 a home. A Coldwell banker and T3Sixty survey of realtors revealed that smart home listings were easier to sell, with nearly 4/5th of home buyers willing to pay more for homes fitted with smart technology.
- Does a smart doorbell increase home value?
A smart doorbell, along with smart door locks and other home automation devices can increase the value of your home. This is because it comes fitted with video and audio capabilities to help you identify who’s at your door. A keyless touchscreen lock can also save you the trouble of having to deadbolt your door manually or worry about losing or misplacing your keys.