Why smart homes sell higher
We love control. And we’ll pay for it.
Smart, Internet of Things (IoT) technology is everywhere. It’s Wi-Fi. Smart thermostats. Doorbells. Security systems.
The goal of this new tech is to make daily life more efficient. IoT solutions integrate into the world around them, connected by the Internet. And, the majority of the tech features some element of remote control.
As we find more and more products to make smart, more markets are gaining from the trend. Now, this model is positively impacting the real estate market.
The most impactful of recent smart technology for real estate are Energy Management Systems (EMS). An EMS lets residents see their energy impact, and gives them the control to implement efficiency strategies. Some systems also branch out into security, and light or heat control. The goal is for all the technologies to work together. This kind of interconnected system earns a residence the rank of smart home.
The home energy market is driven by an increasing demand for EMS. We strive every day to improve efficiency and gain remote control. An EMS, then, becomes the perfect solution to energy problems. It follows that a fully smart home would be more appealing to buyers.
An example of this assumption arrives in the form of a smart home that sold for over $2 million at auction. Other properties in the area were reportedly struggling to find bidders. This home, on the other hand, saw a surge in bids and offers. Why?
Some of the attention is due to the technology linked in the house. The smart tech utilized included lighting control, heating control, security, and more.
This makes sense considering the global trend toward smart, efficient technology across sectors. Residents, tenants, and renters today want more control over their lives, and over their energy especially. So, it follows that they would be willing to pay more for that control.
Survey data supports this. 61% of millennials prefer smart homes for purchase, says research by Coldwell Banker Real Estate. Their polling found that 65% of renters would be willing to spend more on smart-home linked networks. However, the house can’t just be a smart thermostat and a security camera. It needs to be a full home network, completely interconnected. Energy management, control, and security: the complete package.
People want control, including over their energy. An increasing push for efficiency, and continued appreciation for IoT tech supports the trends of the smart home market. After all, smart technology increases energy efficiency, helps residents save money, and puts control back in their hands.
And we love control.