The competition in the real estate market is stiff. Every real estate agent you come across has its own strategy for winning clients and getting sales. Meanwhile, you're still trying to win clients and get sales with your own strategies. One way is to incorporate smart home technology into your listings.
Whether it's renovations or what you do after you've got a purchase offer, you're always on the lookout for ways you can give your clients an edge. What do you do if you want to stay ahead?
According to Realtor's January report, the average home spent 61 days on the market before it sold. Some houses may even take longer to sell than others due to a number of factors, including the quality of the house itself, its location, and price. Smart home technology, however, can reduce the amount of time a property spends on the market.
As a real estate professional, it's important to stay on par with the latest smart home technology innovations. Smart home technology can be used to boost the visibility of your clients' houses and attract more viewers. Here's how smart home technology can benefit you and your clients:
A smart home contains various devices that allow homeowners to monitor and manage their houses remotely. Smart home technology, which ranges from simple devices like automatic lighting, smart blinds, and water leak detectors to sophisticated security systems and even refrigerators equipped with connected apps, allows homeowners to control everything in their home with a single smartphone.
The idea of home automation has been around for years, but with the recent rise of Bluetooth, Wi-Fi, and mobile computers only did the concept begin to gain momentum. Today, many buyers look at potential homes with an eye toward smart home upgrades.
Smart home technology has become increasingly popular over the past few years. A study showed that 69% of U.S. households now own at least one smart home device. According to the said study by the Consumer Technology Association (CTA), 83 million households own at least one smart home product, and 18% of those homes—or about 22 million homes—own more than one.
Smart home technology is being used to great effect in both residential and commercial environments. However, it's now becoming apparent that one industry could be at the forefront of adopting this technology: the real estate industry.
Agents can benefit from smart home technologies in several ways, from enhancing home selling processes to helping them become more efficient and organized.
With the increasing integration of smart home technology, there are many benefits to homeownership. For example, energy-efficient smart home housing is attractive to buyers of smart home technology.
Smart thermostats can reduce energy costs by using geolocation to adjust heating, ventilation, and air conditioning (HVAC) systems.
Smart lighting controls can limit electricity costs, improve security and help to achieve a more comfortable mood for occupants.
On the other hand, smart fans are automatic and can be programmed to sense the temperature in the home, making them a great addition to houses in hotter areas.
The best feature of smart home technology is its intuitive app, which allows users to control the device from their smartphones. The app also allows users to monitor their energy consumption and generate a comprehensive report detailing their energy use. Having this information at hand allows smart home technology buyers to keep their energy bills in check.
Smart home housing is becoming more common, and many real estate agents recommend installing it before listing a property. Tech-savvy generations like Gen Z and millennials are smart home technology buyers, as well as older adults who find such systems helpful for aging in place.
According to statistics, nearly half of millennials (47%) have one or more smart home appliances. Millennials' high regard for smart devices has made them key drivers of the emerging smart home technology industry. Because of this, they are more likely than other generations to rent or buy smart homes.
Smart home technology can boost a buyer's preference for a property, making it easier for real estate agents to connect with potential buyers.
A survey by REALTOR.com revealed that consumers between 18 and 34 would pay more for smart home housing with home theaters, smart speakers, and connected kitchens.
Modernizing an older home can make it more competitive with newer homes. In fact, many home builders offer packages of smart home systems to outfit new homes with thermostats, garage door openers, lighting systems, door locks and video security.
According to Statista, there will be 481.9 million smart homes housing 481.9 million people worldwide by 2025. Homeowners who install smart home technology can enjoy safety, security, and convenience in the home. Smart home technology may also make a homeowner's house more appealing when it comes time to sell.
Technology features make a house stand out to smart home technology buyers. This makes it easier to be in touch with clients. Aside from offering the property, real estate agents can also offer to assist in the set up of the smart devices for ease of use.
Another tip to utilize smart home technology to stay in touch with clients is to be a smart home technology expert. Some clients will be looking for a product that incorporates smart technology, while others will need to be educated on the benefits of doing so.
On the seller's side, real estate agents with a working knowledge of smart home technology can help their clients avoid problems when selling a smart home and also tend to be savvy marketers of smart home technology. Consumer Reports finds that smart home features can add up to 5% to a home's resale value—an extra $15,000 on a $300,000 home. Researchers also found that appraisers are beginning to factor in the value of tech features when determining a home's worth.
Smart home technology is fast becoming a standard feature on luxury properties and other houses of high value. This means that real estate agents who aren't using this technology while marketing homes are missing out on potential buyers and opportunities.
Regardless of whether you're listing your own home, working as a realtor with or without an agency, or just being involved in other aspects of real estate investing, having familiarity with smart home technology is crucial to your success. After all, home buyers and sellers are most interested in smart home housing.
Bortz, D. (2017, May 16). Want a Smart Home? 5 Reasons to Get Started Now—and How. Realtor. https://www.realtor.com/advice/home-improvement/smart-homes-get-started/
Hale, D. & Speianu, S. (2022, February 8). January 2022 Monthly Housing Market Trends Report. Realtor. https://www.realtor.com/research/january-2022-data/
Lasquety-Reyes, J. (2021, June 15). Number of Smart Homes forecast in the World until 2025. Statista. https://www.statista.com/forecasts/887613/number-of-smart-homes-in-the-smart-home-market-in-the-world
Martin, C. (2019, September 30). Smart Home Technology Hits 69% Penetration in U.S.. Media Post. https://www.mediapost.com/publications/article/341320/smart-home-technology-hits-69-penetration-in-us.html
Realtor. (u.d.). Smart Home Technologies Reshape Real Estate Preferences in 2020. Realtor. https://www.realtor.com/research/topics/smart-home-technology/Stasha, S. (2021, February 5). An In-Depth View into Smart Home Statistics. Policy Advice. https://policyadvice.net/insurance/insights/smart-home-statistics/
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