It used to bea that buyers were primarily concerned with the aesthetics of a home and whether the area in which it was located suited their lifestyle. Today, buyers are more focused on the various technologies and gadgets that a house might have to offer. This is thanks to what has been termed 'smart homes', or houses equipped with hardware, software, and connectivity services designed for greater comfort and convenience.
This article will explore what exactly smart homes entail in detail, as well as how they might affect real estate as we know it.
What are Smart Homes?
Smart homes are a recent trend in the realm of home technology, and they are increasingly used by homeowners as well as real estate agents. As of 2016, the U.S. has an estimated 10 million smart homes with an additional 23 million planned to be installed across the country over the next couple years. Many of these will be installed in high-rise or multi-unit residential properties or condominiums, far from standard amenities such as pools, gyms, or retail areas. The smart technology itself can be customized depending on the specific needs of the resident(s), but it typically includes advanced security, entertainment, technology, lighting and climate control systems.
Smart homes may include additional safety features such as fire alarms, cameras, and alarms. They may also integrate with home security systems such as surveillance cameras and intruder or fire alarms. The residential management software may be able to monitor these devices to provide owners with a record of who enters their building or residence at any given time. Smart homes can also offer greater connectivity among residents within the same community via platforms like Facebook or social media websites specifically designed for them.
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As both a trend and a technology, the benefits of smart homes are clear for most homeowners. Smart home technology can provide buyers with greater peace of mind (then again, who wouldn't want this?), but the same cannot be said for owners and renters alike. The main concerns regarding the integration of new features into existing buildings are primarily security issues involving surveillance cameras and the ability to monitor devices remotely. Remote monitoring can also expose data and information about residents in their homes or other areas that might not be intended for public consumption.
Smart homes cite that many people who have installed smart software say that their homes are more comfortable and energy efficient than before. Smart homeowners also receive the added benefit of being able to check up on their properties from afar. This could be very convenient, especially for those who have properties that are left empty or in the hands of temporary tenants most of the time.
How Will Smart Homes Affect Real Estate?
While smart home technology is here to stay, its impact on the real estate business might not be as great as some experts predict, at least not within a few years' time. The cost of equipment needed to meet the standards set for smart homes will likely prevent many homeowners from adding this technology onto their new or existing home. This could also discourage real estate agents from marketing smart homes as much as they would regular ones.
On the other hand, smart home technology could be the new standard for residential properties across the country. It could also play a key part in a larger shift toward home automation, especially among older people who have long lamented the inability to control things in their house remotely. Home automation systems might also help younger people save money on their energy bills by running appliances when electricity rates are lower.
In addition, smart homes could benefit real estate agents looking to sell homes and improve their revenue by streamlining their business operations. Real estate agents already use technology to market homes and find clients, so smart homes could prove to be a welcome addition.
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The Future of Smart Homes
Smart homes are still in their early stages, but the technology will continue to evolve. As they improve, they may be compatible with a variety of different devices that buyers and renters might want or need. For example, many older adults are likely to prefer connecting their thermostats or security systems with smart home technology to reduce costs on gas or utility bills. Security systems can also become more intelligent in the future so that they can better sense intruders and take action accordingly.
Conclusion
Smart home technology is still in its infancy, but it is already influencing the way people live their lives. If used properly, this technology could add a great deal of value to a real estate business. Once smart homes go mainstream, however, they could also drive away some of the people who have become used to their benefits already. In the end, it will be up to real estate agents to determine how smart homes should be designed and marketed to their clients.
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As a real estate broker, I've already invested in smart tech in my home to keep my family's privacy and safety in check. You should too! :)