Smart Home Technology Increases Real Estate Value
Start writing a post

3 Ways Smart Home Automation Improves the Real Estate Value of Your Home

More homeowners and potential home sellers are investing in smart home technology not only to increase their property value, but as a means to achieve convenience, safety, security and cost-efficiency in their homes.

3 Ways Smart Home Automation Improves the Real Estate Value of Your Home

In the past, homeowners chose to upgrade their houses to increase the real estate value through cosmetic renovations. Increasing curb appeal via expert landscaping and application of a fresh coat of paint, in addition to renovations and improvements involving bathroom remodels, kitchen makeovers, room additions, and more are enhancements are standard procedures for any homeowner or realtor looking to increase the property value and entice potential buyers.

The availability of new technologies that gear towards personalized home automation is progressively changing the standard ways of increasing the real estate value of a residence. A smart home system will add to the value and curb appeal of a property, providing not only a convenience to the homeowners, but safety and security as well. Will hooking up a house to the IoT (Internet of Things) be a worthwhile investment when it is time to sell the house?

But first, what is a smart home and IoT?

Smart Home and IoT Defined

A smart home is a house that uses devices that are connected to the Internet to facilitate remote management and monitoring of appliances and home systems. A home automation system allows home systems such as lighting, heating and air conditioning, appliances, computers, TV set and other entertainment systems, camera and security systems to communicate with each other. All the systems can be remotely controlled by a smart app on any networked device or smartphone.

Smart home devices and systems operate together; their automated actions are based on the preference of the homeowner. There are plenty of smart devices available making it possible to choose particular systems and components based on one's requirements.

Everyone has heard of Amazon's Echo device, which is one example of a smart home technology that has become a staple in many modern households.

IoT is an architectural framework that allows data exchange and integration between computer systems and the actual physical world over a current network infrastructure. It is a network of interconnected devices/appliances/things that are fitted with electronics, or embedded with sensors, or have network connectivity, or software that allows them to communicate, and collect and exchange data.

What Home Automation Offers You

There are plenty of smart house technology products available in the market today and are compatible with the Internet and/or our smartphones. All of these products typically gear towards three common goals:

  • Convenience and Comfort
  • Safety and Security
  • Cost and Energy Efficiency

Convenience and Comfort: A smart house is a more convenient house. Home automation makes life a bit easier as it is possible to remotely control every system in the house. Recent research indicates that smart entertainment is the most popular technology in today's homes. This includes smart TVs with Sensurround speaker systems. A smart HVAC system is a popular option too. From the water sprinklers to the window shades, coffee maker and temperature – everything can be controlled through a tablet or smartphone.

Safety and Security: The second most popular technology option is home security devices. A survey showed that about 90% of the respondents consider home and family security as their top reason for home automation. Statistics indicate that break-ins occur every 20 seconds, making it necessary to secure homes and properties.

Home security system offers peace-of-mind and makes for a less anxious homeowner. Email or text messages are sent by the system to the homeowner if something is amiss in and around the house. Remote CCTVs make it possible for the homeowner to view the house and its vicinity in real-time, even if he is far away. With this technology, locking/unlocking doors and windows and overseeing security cameras and perimeter fences are constantly at one's fingertips.

Cost and Energy Efficiency: Smart thermostats are energy savers. They can be adjusted all throughout the day or even regulated on a per-room basis. Smart light systems are energy efficient, as the homeowner can easily turn off or turn on lights as needed.

More people now recognize the earth's progressing limited resources. By controlling window coverings, HVAC, lightings, and other home systems, the homeowner saves on money and resources. Research indicates that through smart home technology, it is possible for an average household to save over $1,000 per year on utilities.

Home Automation and Real Estate Value

Home automation is not a passing fad. It is estimated that by the year 2020, over 30 billion home automation devices will be connected and linked to the IoT. Though home automation is more attractive to tech-savvy home buyers, it is worth to note that both the old and young population view smart homes to be a cost-effective investment.

Buyers of smart-enabled homes consider safety and security as their top priority. They wish to have smart-tech homes that are not only comfortable to live in, but energy efficient as well. Statistics indicate that baby boomers are more inclined to have home automation than millennials, but this could be because the millennials have not yet reached their full buying capacity.

In just a few more years, the buying power of consumers will stem from the gen-Xers and millennials. When buying homes, many millennials are keen on looking at property with smart automation systems, because they typically embrace the notion that 'green' and automated homes are the keys to protecting the environment in the future.

Research indicates that home automation can increase the value of a home from 3% to 5% of its current value. Real estate agents attest that homes with some kind of connection to IoT tend to fetch higher prices than similar homes without home automation.

IoT-connected homes are more appealing because they are safer and more secure, convenient, energy-efficient, and afford a greater sense of comfort and increased quality of life for the homeowner. These are the characteristics that will propel automated homes to a greater market value in the near future. Smart homes have the potential to offer greater equity and lower a homeowner's loan-to-value ratio.

Smart Home Technology as Investment

Home automation is an investment, but it does not have to be a major one that will dent your pocket big time. If your budget is quite limited but you are willing to make a minor investment, lighting and security systems are the most preferred by home buyers. Other preferred smart home features are a keyless entry, built-in speakers and controllable motorized shades.

Major smart home technology investments that are cost-saving are smart HVAC systems, smart appliances, smart irrigation and smart building materials. These home automation systems can significantly increase the property value. Homeowners will enjoy decreasing home insurance premiums and maintenance costs.

If you are unsure of how much you want to spend on home automation, it is best to start by installing individual smart home features. It is an affordable means to begin building a network of connected devices.

With home automation, homeowners can sell their property at higher prices as buyers expect to pay more for upgraded and functional home automation systems. Fitting your house with smart technology is an investment that will equate to financial gain when it comes to selling.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Olivia White

"The American flag does not fly because the wind moves it. It flies from the last breath of each solider who died protecting it."

Keep Reading... Show less

Separation Anxiety in Pets

Separation anxiety in pets is a real thing and recognizing the warning signs is important.


Since March, Covid-19 required most of the world to quarantine in their homes. Majority of people ended up working from home for nearly five months. This meant pet owners were constantly with their pets giving them attention, playing with them, letting them out etc. Therefore, when the world slowly started to open up again and pet owners began returning to normal life work schedules away from the home, pet owners noticed a difference in the way their pet acted. Many pets develop separation anxiety especially during this crazy time when majority people were stuck inside barely leaving the house.

Keep Reading... Show less
Robert Bye on Unsplash

I live by New York City and I am so excited for all of the summer adventures.

Keep Reading... Show less

The invention of photography

The history of photography is the recount of inventions, scientific discoveries and technical improvements that allowed human beings to capture an image on a photosensitive surface for the first time, using light and certain chemical elements that react with it.


The history of photography is the recount of inventions, scientific discoveries and technical improvements that allowed human beings to capture an image on a photosensitive surface for the first time, using light and certain chemical elements that react with it.

Keep Reading... Show less
Health and Wellness

Exposing Kids To Nature Is The Best Way To Get Their Creative Juices Flowing

Constantly introducing young children to the magical works of nature will further increase the willingness to engage in playful activities as well as broaden their interactions with their peers


Whenever you are feeling low and anxious, just simply GO OUTSIDE and embrace nature! According to a new research study published in Frontiers in Psychology, being connected to nature and physically touching animals and flowers enable children to be happier and altruistic in nature. Not only does nature exert a bountiful force on adults, but it also serves as a therapeutic antidote to children, especially during their developmental years.

Keep Reading... Show less
Health and Wellness

5 Simple Ways To Give Yourself Grace, Especially When Life Gets Hard

Grace begins with a simple awareness of who we are and who we are becoming.

Photo by Brooke Cagle on Unsplash

If there's one thing I'm absolutely terrible at, it's giving myself grace. I'm easily my own worst critic in almost everything that I do. I'm a raging perfectionist, and I have unrealistic expectations for myself at times. I can remember simple errors I made years ago, and I still hold on to them. The biggest thing I'm trying to work on is giving myself grace. I've realized that when I don't give myself grace, I miss out on being human. Even more so, I've realized that in order to give grace to others, I need to learn how to give grace to myself, too. So often, we let perfection dominate our lives without even realizing it. I've decided to change that in my own life, and I hope you'll consider doing that, too. Grace begins with a simple awareness of who we are and who we're becoming. As you read through these five affirmations and ways to give yourself grace, I hope you'll take them in. Read them. Write them down. Think about them. Most of all, I hope you'll use them to encourage yourself and realize that you are never alone and you always have the power to change your story.

Keep Reading... Show less

Breaking Down The Beginning, Middle, And End of Netflix's Newest 'To All The Boys' Movie

Noah Centineo and Lana Condor are back with the third and final installment of the "To All The Boys I've Loved Before" series


Were all teenagers and twenty-somethings bingeing the latest "To All The Boys: Always and Forever" last night with all of their friends on their basement TV? Nope? Just me? Oh, how I doubt that.

I have been excited for this movie ever since I saw the NYC skyline in the trailer that was released earlier this year. I'm a sucker for any movie or TV show that takes place in the Big Apple.

Keep Reading... Show less

4 Ways To Own Your Story, Because Every Bit Of It Is Worth Celebrating

I hope that you don't let your current chapter stop you from pursuing the rest of your story.

Photo by Manny Moreno on Unsplash

Every single one of us has a story.

I don't say that to be cliché. I don't say that to give you a false sense of encouragement. I say that to be honest. I say that to be real.

Keep Reading... Show less
Facebook Comments