How Smart Home Technology is Affecting The Real Estate Industry

How has the growth of smart home technology impacted the real estate industry?

what we’ll look at today is how smart technology extends far beyond a smart speaker for streaming music or organizing your day.

Before we fire into a few statistics, we’ll briefly highlight core areas where smart tech meets the real estate industry head-on. 

5 Ways Smart Home Technology Has Changed The Real Estate Game

 

5 Ways Smart Home Technology Has Changed The Real Estate Game

  1. Smart Home Tech Can Increase Value of Investment Properties
  2. Automated Homes Can Attract More Tenants or Buyers
  3. Fully-Laden Connected Homes Often Spend Less Time on The Market
  4. Virtual Reality Has Transformed Marketing Real Estate

1) Smart Home Tech Can Increase Value of Properties

Potentially the most significant single influence of home automation on real estate is the way the price of a house for sale can be boosted.

If you think about any real estate listing, the features and amenities on offer are vital when determining how much a property will fetch on the market. According to Chad Curry, MD of the National Association of Realtors (NAR), when a home is smartened up, it can fetch 5% more than dumb alternatives in the same neighborhood.

A 2015 CNET-Coldwell Banker survey yielded some interesting statistics. Although easy to remove smart wireless devices when moving home, 66% of those surveyed said they would gladly leave these gadgets behind to expedite a sale. In this same survey, fully 81% of those already invested in smart home tech said they would be more likely to buy a home if it was automated. Beyond this, 71% said they were specifically seeking a home with smart home technology already on board.

Pricing trickles down beyond sales to impact both investment properties and rentals.

What the savvy investors do…

Savvy investors can install a batch of reasonably cheap, well-considered smart devices into a more affordable home and flip it for a superior once automated. The same applies to homes for rent, too. It goes unsaid that the more attractive a property is all around, the higher rental value it commands. Bottom line, whether you’re looking to sell a house, flip an investment or rent out a second home, throwing in a few smart devices can have an exceptional ROI.

2) Automated Homes Can Attract More Millennial Tenants or Buyers

Home Advisor survey showed that 77% of millennials had purchased a smart device compared to just 50% from the previous generation and a paltry 25% of over 55s.

What does this mean?

Well, since it’s projected millennials will own 30 million homes by the end of next decade, the extent to which they are driving smart home tech is impacting the real estate

3) Fully-Connected Homes Often Spend Less Time on The Market Value of Properties

If you’re selling a home, the last thing you want is a long interval when it sits on the market and hamstrings your next move.

Remember, 81% of smart device owners admitted to being more likely to buy a home if it was already automated and shows that it’s not just the price that can be influenced but also the amount of time it takes to sell your home.

Now, many variables come into play when selling a house, many entirely unrelated to smart devices. That said, if you’re finding it awkward to shift your property, you might be amazed at the impact of a few gadgets.

4) Virtual Reality Has Transformed Marketing Real Estate

While perhaps more tangentially linked to smart home technology, virtual reality has altered the landscape for realtors looking to shift homes, whether for sale or rent.

Since the Oculus Rift prototype surfaced back in 2010, VR has been making big waves. It wasn’t until as recently as 2015, though, that it started to gain proper traction in the real estate industry.

When agencies started showing off upscale properties using Samsung Gear VR headsets, it becomes apparent that realtors and consumers could both save vast swathes of time thanks to technology.

Virtual tours offer potential buyers the chance of guided walk-throughs with 360-degree video and an immersive, interactive element.

When properties are still under construction, VR can help with staging and visualization. Trying to imagine what an empty shell will look like can be challenging. Virtual reality can fill in the blanks correctly.

Check out some specific examples of VR applications right here.

5) The Emergence of New Smart Developments

If you’re selling a home, the last thing you want is a long interval when it sits on the market and hamstrings your next move.

Remember, 81% of smart device owners admitted to being more likely to buy a home if it was already automated and shows that it’s not just the price that can be influenced but also the amount of time it takes to sell your home.

Now, many variables come into play when selling a house, many entirely unrelated to smart devices. That said, if you’re finding it awkward to shift your property, you might be amazed at the impact of a few gadgets.

4) Virtual Reality Has Transformed Marketing Real Estate

While perhaps more tangentially linked to smart home technology, virtual reality has altered the landscape for realtors looking to shift homes, whether for sale or rent.

Since the Oculus Rift prototype surfaced back in 2010, VR has been making big waves. It wasn’t until as recently as 2015, though, that it started to gain proper traction in the real estate industry.

When agencies started showing off upscale properties using Samsung Gear VR headsets, it becomes apparent that realtors and consumers could both save vast swathes of time thanks to technology.

Virtual tours offer potential buyers the chance of guided walk-throughs with 360-degree video and an immersive, interactive element.

When properties are still under construction, VR can help with staging and visualization. Trying to imagine what an empty shell will look like can be challenging. Virtual reality can fill in the blanks correctly.

Check out some specific examples of VR applications right here.

We hope you enjoyed today’s snapshot of the effects of smart home tech on the real estate industry, valuable for buyers and sellers alike.

We’ve got plenty more of the latest smart home news lined up make sure to visit regularly. 

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