REALTORS®, do you think that consumers are starting to expect too much from houses? Buyers want homes that are beautiful, well located, have ample closet space…and now they’re supposed to be smart too! Smart homes are a hot topic in the real estate industry, and rightfully so. They help to make life easier and, let’s be honest, the technology is really cool. But what does it mean for the real estate industry?
Defining “Smart Home”
In order to talk about smart homes, we must first define the somewhat ambiguous term. Coldwell Banker Real Estate LLC and CNET teamed up to create a concrete definition.
Officially, a smart home is: “A home that is equipped with network-connected products (aka "smart products," connected via Wi-Fi, Bluetooth or similar protocols) for controlling, automating and optimizing functions such as temperature, lighting, security, safety or entertainment, either remotely by a phone, tablet, computer or a separate system within the home itself.”
They go on to say that a smart home needs to have three different “smart” capabilities, one of which must be a security or temperature system. You can find the complete chart here.
Smart Homes and REALTORS®
The National Association of REALTORS® conducted a survey to examine REALTORS® perspectives on smart homes. The results showed that both REALTORS® and their clients are interested in the trend. Forty-two percent of the REALTORS® surveyed showed an interest in acquiring a smart home certification.
Smart Homes and Consumers
More and more homebuyers are interested in smart homes while browsing the market. NAR’s survey reports that 42 percent of respondents had clients that were interested in smart home devices.
According to an iControl survey, 25 percent of consumers are most willing to adopt smart technology when buying a new home. And throughout different surveys, security is continuously cited as the top reason to purchase a smart home system.
Some may think that millennials are the only ones interested in smart home technology, but that is far from true. One survey shows that 33 percent of consumers who currently own smart home technology are between the ages of 35 and 44 and 15 percent are over the age of 55. Another study reveals that U.S. consumers over the age of 55 are more excited about the cost savings benefit of the smart home than any other generation.
Smart home products are becoming more mainstream, which means that they are no longer reserved for extremely affluent individuals. According to Coldwell Banker, American households earning $50k to $75k are adopting smart home technology at nearly the same pace as those earning $75k to $100k.
With many different demographics pursuing smart technology, it is a good addition to a house on the market. It can make any home stand out, and it may even be the deciding factor when buyers are choosing between two properties.
What experiences have you had with consumers interested in smart home technology? What gadget seems the most popular among your clients? Please share in the comments bellow. We love hearing your stories!