Smart home technology has revolutionized the way we live, making our lives more convenient, efficient, and secure. From controlling our home’s temperature and lighting with a simple voice command to monitoring our home’s security from our smartphones, smart home automation has become an integral part of our daily lives. But, with the rise of this technology, many homeowners are now wondering if having a smart home can also increase the value of their property.
The answer is yes. Smart home technology has become more than just a modern convenience; it’s often a deciding factor for today’s homebuyers. In this Redfin real estate guide, we’ll explore which smart upgrades attract buyers, how they can impact your home’s resale price, and what you should consider before investing in home automation.
Attracting Buyers with Smart Upgrades
With the increasing demand for smart homes, it’s no surprise that homebuyers are willing to pay more for a property that comes equipped with the latest technology. According to a survey conducted by Coldwell Banker, 81% of homebuyers said they would be more likely to buy a home if it had smart home technology already installed.
But, not all smart upgrades are created equal. Some features are more appealing to buyers and can increase a home’s value more than others. Here are the top smart home upgrades that can attract potential buyers:
1. Smart Thermostats
One of the most sought-after smart home features, a smart thermostat allows homeowners to control their home’s temperature remotely, adjust settings based on their schedule, and even learn their habits to optimize energy usage. This not only adds convenience but can also save homeowners money on their energy bills. According to a study by Nest, a popular smart thermostat brand, homeowners can save an average of 10-12% on heating and 15% on cooling costs with a smart thermostat.
2. Smart Lighting
Smart lighting systems allow homeowners to control their lights remotely or with voice commands, set schedules, and adjust brightness and color. This can enhance the ambiance of a home and also save on energy costs. A recent survey by Coldwell Banker found that 65% of homebuyers are willing to pay more for a home with smart lighting.
3. Smart Security Systems
Safety and security are top priorities for homebuyers, and smart security systems offer an added layer of protection. These systems include features such as remote monitoring, door and window sensors, and video surveillance, which can all be controlled from a smartphone. A study by August Home found that homes with smart security systems sell for an average of 5% more than homes without.
4. Smart Locks
Similar to smart security systems, smart locks also provide added security and convenience. They allow homeowners to lock and unlock their doors remotely, set temporary access codes for guests, and even receive notifications when someone enters their home. According to a study by August Home, homes with smart locks sell for an average of 7% more.
5. Smart Appliances
Smart appliances, such as refrigerators, ovens, and washing machines, are becoming increasingly popular among homebuyers. These appliances offer features like remote control, energy efficiency, and even the ability to order groceries directly from the appliance. While the impact on home value may not be as significant as other smart upgrades, they can still attract buyers who are looking for a modern and convenient lifestyle.
Impact on Home Value
The addition of smart home technology can increase a home’s value by 3-5%. However, the exact impact can vary depending on the location and the specific features installed. For example, homes in urban areas or tech-savvy neighborhoods may see a higher increase in value compared to homes in more rural areas.
It’s essential to keep in mind that not all smart upgrades will increase a home’s value. Some features, such as smart speakers or entertainment systems, may not necessarily add value to a home. It’s best to focus on upgrades that offer practical benefits and have a broad appeal to potential buyers.
What to Consider Before Investing in Home Automation
While adding smart home technology may increase a home’s value, it’s crucial to consider the cost and potential return on investment. Homeowners should carefully evaluate their budget and research the market to determine which upgrades will provide the most significant impact.
Another factor to consider is the compatibility of the smart upgrades with the home’s existing systems. It’s essential to ensure that all devices can communicate and work together seamlessly to avoid any
