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Whether you're building a home from scratch or selling your current property, incorporating smart technology in your home can prove to be a wise and rewarding decision. Keep reading to find out more about the smart home features that can elevate your home's value, making it a more desirable and appealing investment.
Key Takeaways
- A smart home is one where the homeowner can control various appliances remotely from their phone or other connected devices
- It is estimated that by 2025, there will be 481.9 million smart homes across the world
- Incorporating smart features in a home can increase its value due to the added convenience that they offer. If you're looking to include smart home features in an investment property, be sure to consult a real estate professional to provide guidance as they are aware of the current market trends and buyer preferences
- Among the smart home features that you can install to upgrade your home include smart thermostats, home security systems and smart sprinkler system
Disclaimer
The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on financial planning and financial management here. More on disclaimers here.
What is a Smart Home?
A smart home is one with advanced technologies and devices that are interconnected and can be controlled remotely. Basically, the homeowner can control various appliances in the home remotely from their phone or other connected devices.
These technologies are designed to enhance the functionality and efficiency of a home. A smart home typically utilizes a combination of devices, sensors and internet connectivity to automate and control various aspects of the household. It is also important to note that there is no specific number of devices that qualify a home as a smart home.
Through the use of smartphone apps, voice commands or centralized control systems, homeowners can monitor and manage their smart home features from anywhere, providing greater flexibility and peace of mind.
Does Having a Smart Home Increase its Market Value?
Yes, having a smart home can increase its market value. Smart home features have gained popularity among homebuyers due to the added convenience that they offer. When properly integrated, these features can make a home more appealing and desirable, giving it a competitive edge in the real estate market. It is estimated that by 2025, there will be 481.9 million smart homes across the world.
Smart home technologies can provide a range of benefits that potential buyers find attractive. For example, energy-efficient smart thermostats and lighting systems can help reduce utility costs and appeal to environmentally conscious buyers. On the other hand, home security systems with smart cameras and smart garage door openers can offer enhanced safety and peace of mind, which can be a significant selling point.
Additionally, the ability to control and automate various aspects of a home, such as lighting, temperature, entertainment systems and home appliances through voice commands or mobile apps, adds convenience and improves the overall living experience. These features can be particularly appealing to tech-savvy buyers, with millennials currently making up over 50% of homebuyers in the U.S.
However, it's important to note that the impact of smart home features on market value can vary depending on several factors, including the local real estate market, buyer preferences and the specific features and integration of the smart features. It's crucial to consider the cost and return on investment when deciding which smart home upgrades to incorporate into your property. If you're looking to include smart upgrades in an investment property, be sure to consult a real estate professional to provide guidance. Real estate agents are usually in the know when it comes to current market trends and buyer preferences.
10 Great Smart Home Features
A wide range of devices:
1. Smart Thermostats
Programmable thermostats allow homeowners to control the temperature remotely and create energy-efficient schedules. These devices can adapt to occupants' preferences, optimize energy usage and potentially reduce utility costs.
2. Home Security Systems
Comprehensive security systems with features like smart locks, alarm systems, video doorbell and motion detectors enhance safety and provide peace of mind for potential buyers.
3. Smart Lighting
Automated lighting systems that enable remote control, scheduling and integration with voice assistants or motion sensors offer convenience and energy efficiency. They can also create ambience and enhance the aesthetics of your home.
4. Voice-Activated Assistants
Installing voice assistants like Amazon Alexa, Google Assistant or Apple HomeKit allows homeowners to control various smart devices, manage routines and access information with voice commands.
5. Smart Door Lock
Keyless entry systems that use smartphones or biometric authentication can be appealing to buyers who prioritize security and the ability to grant access to guests or service providers remotely.
6. Smart Water Sensor
This compact device is designed to detect leaks and water-related issues in your home. It detects water leaks or abnormal moisture levels and sends instant alerts to your smartphone. By placing it near water sources such as sinks or appliances, you can quickly address leaks, prevent costly damage and save on repairs.
7. Smart Sprinkler System
This system uses advanced technology to automate and optimize the watering process based on factors such as weather conditions, soil moisture levels and plant types. With a smart sprinkler system, you can set personalized watering schedules, remotely control and monitor your sprinklers through a smartphone app, and conserve water by avoiding unnecessary watering.
8. Smart Smoke Detector
Unlike traditional smoke detectors, a smart smoke detector is connected to your home's Wi-Fi network and can send real-time alerts to your smartphone in the event of smoke or fire detection.
9. Smart Appliances
Energy-efficient smart appliances like refrigerators, ovens, washing machines and dishwashers can be attractive to buyers looking for modern conveniences and cost-saving features. Remote monitoring and control add value.
10. Smart Moisture Sensor
A smart moisture sensor is a device that continuously monitors the moisture levels in areas prone to dampness, such as basements, bathrooms or laundry rooms. By detecting excessive moisture, the sensor sends real-time alerts to your smartphone or smart home system, allowing homeowners to take immediate action.
Benefits of a Smart Home
Convenience and Control
One of the primary benefits of a smart home is the convenience it offers. You can control various aspects of your home, such as lighting, temperature, security systems and appliances with just a few taps on your smartphone or through voice commands. This level of control allows you to customize and automate your home to suit your preferences and simplify everyday tasks.
Energy Efficiency
Smart home technology enables you to optimize energy usage, leading to increased energy efficiency and cost savings. By monitoring and managing energy consumption, you can have a more sustainable and eco-friendly home.
Enhanced Security
A smart home security system provides an added layer of protection for your property. With features such as smart locks, security cameras and motion sensors, you can remotely monitor your home and receive instant alerts in case of suspicious activity.
Safety and Risk Prevention
Smart home devices can help prevent accidents and mitigate risks. For instance, smart smoke detectors and carbon monoxide detectors can send notifications to your phone in case of emergencies, allowing for quick response and evacuation. Water leak sensors can detect leaks early, minimizing potential water damage. These features contribute to a safer living environment for you and your family.
Remote Monitoring and Access
With a smart home, you can monitor and access your home from anywhere. Whether you want to check on your security cameras, lock/unlock doors for guests or deliveries or receive alerts about unusual activity, you have the flexibility to manage your home remotely. This remote access provides convenience, peace of mind, and greater control over your home.
Future-Proofing
Investing in a smart home can be seen as future-proofing your property. As technology advances, it's easier to upgrade and integrate new devices into your existing smart home infrastructure. This ensures that your home remains up to date with the latest innovations, improving its functionality and potential resale value.
Bay Street Capital Holdings
Based in Palo Alto, CA, Bay Street Capital Holdings is a renowned Black-owned investment advisory and wealth management firm that was founded by William Huston after 13 years of supporting the United States' largest retirement plan ($650B) Thrift Savings Plan. The firm manages portfolios with the goal of maintaining and increasing total assets and income with a high priority on managing total risk and volatility.
In 2023, Bay Street has been named a Finalist in the wealthmanagement.com 2023 Industry Awards under the category of Asset Managers: Diversity, Equity and Inclusions for its work with Resthaven Properties. In 2021, William was recognized as Investopedia’s Top 100 Financial Advisors. In the same year, Bay Street was also selected as a finalist out of over 900 firms across the US in the category of Asset Manager for Corporate Social Responsibility (CSR). In California, only two Black-owned firms out of nineteen firms received this recognition.
Sources
https://www.designblendz.com/blog/smart-homes-understanding-the-value
https://www.upnest.com/1/post/7-smart-home-technology-upgrades-that-increase-the-value-of-your-home/
https://www.safewise.com/faq/home-automation/home-automation-increase-value/
