Does Smart Home Tech Increase Your Home’s Value?
In a word, yes. According to Statista, smart home technology is growing so fast that it’ll reach a value of $53B by 2022. Millennials are leading the way, but all demographics are enjoying the powerful features offered by these devices—and some have come to expect them.
In a survey conducted by Parks Associates, Americans were pretty clear about their desire to live in smart homes. Here’s the demographic breakdown of those who say “Gimme that smart home tech!”
Millennials 61%
GenXers 52%
Boomers 50%
Buyers are also rethinking what constitutes a desirable purchase. In the survey, 71% said they want a move-in ready home (I’m surprised that’s not 100% tbh—everyone wants a move-in ready house, it’s just that homes with exactly the finishes you want, in the neighborhood you want, and within your budget aren’t usually sitting around waiting for you to show up). Anyway, the point is, 44% of the people who said they want a move-in ready home also said that smart home technology should already be installed. In other words, if it doesn’t have smart home technology, it ain’t move-in ready. Another 57% said they’d consider buying an older home that had been updated if the update included smart home technology.
Is your home already smart?
A smart home is defined as a modern home where the appliances and devices can be controlled remotely by the owner, usually through a mobile app. Smart devices and appliances can also be connected to other smart devices in the house, making the use of smart home tech super easy and convenient. In order to meet the smart home standard, you must have either security or thermostat controls and at least two other features from this list:
Smart refrigerator, washer or dryer
Smart TV with streaming services
Smart HVAC, fan or vents
Smart landscaping sensors and irrigation system
Smart fire or carbon monoxide detectors and nightlights
Does smart tech increase your home value?
Okay, let’s finally get to the point: Smart home technology definitely adds to market value. Appraisers make adjustments when they compare tech-enabled homes with similar (but tech-deficient) houses. Smart homes are easier to sell and command higher prices as a result. The key is having smart products installed and functioning before you list your home, because most buyers don’t want a prewired home that still needs products installed.
Christy Rosen Clement is a Pricing Strategy Advisor®, Seller Representative Specialist®, Military Relocation Professional® and REALTOR® at Palermo Real Estate Professionals in South Tampa
