You have to admit it…smart home technology is pretty cool.
“Smart home technology is currently sweeping through the marketplace with vigor and determination,” says an article from property management team Green Residential. “Everyone wants to get their hands on the smart gadgets and advanced technologies they read about on the internet or see on television.”
The ability to turn off lights, play music, adjust the temperature, water your lawn, monitor your home, and unlock your door from a smartphone or tablet is pretty impressive. But according to a survey from Coldwell Banker Real Estate, there’s much more to it.
Smart home technology is key for higher property values.
Coldwell Banker Survey Results
Due to interest in the rapid growth of smart home technology adoption, Coldwell Banker created a survey that polled more than 4,000 randomly selected U.S. adult homeowners. Their findings revealed that not only do properties with smart home technology sell quicker, but homebuyers are more likely to overpay when smart technology is installed.
Some key findings of the survey include:
- About 45 percent of all Americans said they owned smart home technology or had plans to invest in 2016.
- 27 percent of those who said they didn’t have smart home technology said they wanted it.
- 70 percent of those who purchased smart home technology became “addicted” to it and said they’d continue to purchase products that complemented their existing tech. They also said that having just one smart home category in the home wasn’t enough to make it a “smart home.”
- 81 percent of current smart homeowners said they would be more inclined to purchase a home with smart tech already installed.
- About two-thirds of homeowners said they planned to install smart home tech or leave their smart tech behind when selling the home to make it sell faster.
- Those same homeowners said they’d be willing to pay between $1,500 and $3,000 more for a home with smart home tech.
- Contrary to popular belief, older generations (those between 40 and 60 years old) are adopting smart home technology faster than the younger generation. This is largely due to higher income, as smart home technology can be expensive.
- Still, millennials are still pretty invested in smart home products, as 47 percent own something that would be considered smart home tech. They’re also willing to pay higher rent for smart home features.
Most Popular Smart Tech
The survey also revealed that smart home technology is not created equally. It showed what consumers value most, as well as the most common smart tech purchased.
[pullquote]For most, entertainment tech is the gateway to smart home tech.[/pullquote] About 44 percent of those with smart home tech own a smart TV, a speaker system, or another smart entertainment product. After that comes smart security systems (31 percent) and programmable thermostats (30 percent). As is typical in the modern American home, aesthetics often come before functionality.
Homebuyers are more interested in smart security and temperature systems than they are in entertainment, however. When looking for a home, about 65 percent said they most highly valued smart security and 57 percent said temperature systems.
Here are other stats regarding consumer interest in smart home tech.
- Security (65 percent)
- Temperature control (57 percent)
- Safety (48 percent)
- Lighting (46 percent)
- Entertainment (42 percent)
- Appliances (23 percent)
Bringing Smart Tech Into Homes
This comprehensive survey is a small glimpse of the future. Home renovations and sales will never be the same, and it won’t be long before smart home technology becomes as important to homeowners as doors and windows.
“Smart home technology will soon be expected in homes, just like stainless steel and granite are the norm across properties today,” said Travis Gray, a sales associate affiliated with Coldwell Banker Residential Brokerage in Annapolis, who is well-versed in smart home technology. “In three to seven years, I foresee homes being completely outfitted with smart technology – for improving both functionality and lifestyle in our homes.”
Whether you’re a real estate agent, buyer, seller, or investor, it’s important to consider smart home technology now. Doing so will prepare your home for more interest and higher sales.