Growth of sought-after automated technology boosts home values
From the light-hearted litany of in-home entertainment options to the seriousness of enhanced security features, a growing number of consumers are incorporating smart technology into their daily lives. This upward trajectory is following suit in the real estate market, where buyers are seeking out fully integrated smart homes.
More and more homeowners are finding the appeal of smart products is linked to the ease these devices offer in daily life. There is no longer a need to fumble around, looking for keys or garage door openers, for example.
Many manufacturers and products have been infused with Internet of Things (IoT) technology and artificial intelligence (AI), and now, fully integrated smart homes have followed suit. Homes reach a “smart” status when multiple devices are able to communicate with one another.
There are multiple types of appliances and in-home infrastructure that are smart-enabled, and the most up-to-date products are equipped to work in tandem with one another. Examples of some of the smart products found within homes include air conditioning, heating, lighting, security systems, shades, sound systems and TVs.
In some instances, homeowners are ditching their traditional keys and garage door openers, opting instead for IoT and AI systems that will allow entry through facial recognition or fingerprints.
Compass Real Estate agents have been taking note of the growing popularity of smart homes.
“It’s really all encompassing,” one Compass agent explains. “You have smart thermostats, or smoke detectors where you can click an app on your phone and turn it off because you’re just cooking. On the other end, you’ll get an alert if the smoke detector is going off in your house.”
Scenarios that seemed futuristic not that long ago are playing out with the help of smart technology.
“You could be away from home, and you can turn your lights on or off,” the Compass agent says, pointing to examples. “You can open a front door for your child. They don’t have to wear a key around their neck anymore. Now they can walk up to their Nest doorbell and say, ‘Mom, open the door.’”
The big picture, according to the Compass agent, is this: “Integrative smart home services have really started to grow. It’s definitely changing real estate.”
While there are a number of variables in the mix — particularly in the past year, as demand for homes has surged — the overarching conclusion is that smart-based technology is an attribute that will enhance any property’s marketability and sale price.
“There’s been an onslaught of new, first-time homebuyers,” a Compass agent notes. “These are people who are entering the market and have grown up with technology their whole life. They need and want those services.”
The shift toward smart homes is especially evident for new home construction. Builders are touting integrated AI and IoT features as the properties are marketed. In the past, such sweeteners as a free basement, for example, were often advertised to catch the attention of homebuyers.
“Today, a smart home package would be more of a buyer incentive,” the Compass agent shares of the shift that has been taking place. “What we’re seeing now is new home builders who are not giving away the incentive of the basement. Instead, they’re saying, ‘Our homes are smart homes.’”
While smart homes have been increasing in popularity, and will likely continue to do so, these features are not for everyone.
“There’s a generation that can be more hesitant to use technology because it’s not something they grew up with,” the agent offers up in the caveat. “There are also people across all generations out there who are trying to get away from technology.”
But, in the end, market demand for individual smart devices and the fully integrated home experience clearly shows how technology is resonating with most consumers.
“For a majority of people, they do want to know if their smoke alarm is going on, or if their Amazon package has been delivered,” the agent adds.
And the realities of daily life for a growing number of families show why smart-enabled technology has resonated.
“Today, we’re just so busy,” the Compass agent says. “A lot more people are working from home these days, but when you leave, you want to know you’re still connected. It’s a different world now. It’s evolving.”
By Dave Fidlin
