The internet and digital technology have already changed the real estate industry in many ways. In particular, they have transformed the ways in which we search for and share information about real estate. Now, smart home technology, a natural extension of the internet of things, or IoT, is making an even bigger splash. From Nest thermostats that can be controlled remotely from wherever you are to force-detecting floors that can sense mobility problems in seniors, smart home technology is prompting many noteworthy changes within the real estate industry, including what attracts buyers to homes and transforming the things that make a home valuable and marketable.
What is Smart Home Technology?
Put simply, smart home technology is technology that allows homeowners to control, monitor and automate devices around their homes via smartphones, tablets and other mobile devices. Smart thermostats were among the first examples to infiltrate the market, but the offerings have expanded significantly in the space of just a few short years. Smart home devices are connected to homeowners’ devices and each other through Wi-Fi, Bluetooth and related transmission technologies. Unlike high-tech home gadgetry of years past, smart home tech requires little technical know-how and involves no complex wiring or other complicated factors.
The Rise of Smart Home Tech
It’s fascinating to consider how widespread smart home technology has become even in the space of just a few brief years. Some particularly intriguing facts about this innovation technology include:
- According to a survey by CNET and Coldwell Banker, approximately 45 percent of Americans expected to own or to have invested in smart home technology by the end of 2016
- 91 percent of those who currently use smart home technologies would recommend them to others
- The smart home technology industry is expected to surpass $130 billion by 2020
- 43 percent of millennials state that they currently use smart home technology to some degree. Intriguingly, 33 percent of those aged 33 to 54 and 24 percent of those aged 55 and older state that they already use the technology
- According to the 2017 Home Buyer and Seller Generational Trend Report, millennials now make up the largest potential group of home buyers. 72 percent state that they would be willing to pay up to $1,500 to add smart home technology to their homes while 44 percent state that they’d be willing to pay up to $3,000
The Most Popular Smart Home Technology Solutions
With every passing day, new kinds of smart home technology seem to hit the market. Already, however, some devices have emerged as must-have additions in modern homes. These include:
- Thermostats – As mentioned above, smart thermostats like the Nest thermostat have proven to be wildly popular smart home technology devices. From wherever you happen to be, you can control the temperature of your home’s thermostat through a simple smartphone interface.
- Lighting – Through smart home technology, lights and fixtures can be connected, automated, controlled and programmed with ease.
- Shades – Smart shades and blinds allow homeowners to adjust natural lighting in the home quickly and easily.
- Security and Safety – Home security is being revolutionized by smart home technology, making it possible to set up a comprehensive security system for a fraction of the cost and hassle of a traditional wired system.
- Hub Systems – Finally, hub systems that tie all devices within a home together allow homeowners to issue voice commands to hidden microphones. Qualcomm recently developed smart-router technology that eliminates the need for devices like Echo and Google Home.
Ways in Which Smart Home Technology Impacts the Real Estate Industry
Smart home technology has already profoundly changed the ways in which homes are marketed. More than anything, homes that include smart home technology features tend to command higher sales prices. According to the Consumer Electronic Association and the National Association of Home Buyers, smart home technologies boost closing prices by 3 to 5 percent. The addition of a few relatively affordable smart home features also improves the desirability of a home.
Another way in which smart home tech is changing real estate is that it’s affecting who is attracted to a home. For example, millennials may be convinced to buy a home that they otherwise wouldn’t if it’s equipped well enough. Similarly, seniors who are looking for ways to remain independent may target homes that feature health and safety boosting technologies.
About Real Estate Entrepreneur Todd Lubar
Unlike many real estate professionals, Todd Lubar predicted the rise in prominence of smart home technologies several years ago. An early adopter by nature, Lubar has stayed abreast of the latest developments in smart home technologies and the internet of things for some time. A 1995 graduate of Syracuse University, Lubar attended Sidwell Friends School in Washington, D.C., and Peddie School in Hightstown, NJ.
Lubar kicked off his career with Crestor Mortgage Corporation in 1995. His career continually progressed as he moved through positions with Legacy Financial Group, Charter Funding and Priority Financial Services. Today, Todd Lubar is the owner and president of TDL Ventures, which he founded in New Jersey in 2013. Lubar has also gained experience in many diverse industries, including recycling, demolition and real estate development. He has been named one of the Top 25 Mortgage Originators in the U.S., and he continually looks for ways to improve the services that he provides to clients.
What Does the Future Hold for Smart Home Technology?
Even though it’s only in its infancy, smart home technology has prompted many profound changes. The ramifications for the real estate industry are considerable, and that will become truer still as time goes by. Before very long, real estate experts like Todd Lubar believe that homes that lack smart home technology will be the exception rather than the rule. With this in mind, it is wise for homeowners who want to sell their homes quickly and for the best price possible to add smart home technologies whenever possible.