We’re all familiar with the phrase, “Your home is your castle.” In today’s era, millennial buyers are wanting their castles smarter, but they’re not the only ones. In a 2017 Home Buyer and Seller Generational Trend report by NAR (National Association of Realtors), millennials have become the largest group of potential homebuyers. A Coldwell Banker survey showed 72% of millennials are willing to pay an average of $1.5k or more, and 44% are inclined to pay $3K or more to have a smart home. As highlighted in a previous post regarding smart homes, this just doesn’t apply to millennials. The trends for wanting homes smarter overall are increasing. In fact, smart home technology has become the most desired feature during the past 5 years.
Within this same survey, its estimated approximately 45% of American homebuyers, and homeowners are expected to either own home with smart home technology or invest in smarter upgrades. What’s remarkable with this survey is 91% of homeowners with smart home devices would recommend it to others to do the same because the expectation is: your home will sell faster. So if this becoming a trend in the mainstream real estate, what precisely is a smart home?
What Is A Smart Home?
Smart home’s comprise of automated lights, video security, programmable thermostats, air purifying sensors, and automated environmentally conscious sprinkler systems (See specific products supporting these features). Each of these features is connected thru mobile apps, or control panels allowing you to control, monitor, and automate.
A primary reason this has become such an upward trend among homebuyers and sellers is due to its ease-of-use to set up. Also, it has become affordable for sellers to install as an added feature. How easy? Take look at some of the companies offering easy-to-install sensors, switches, and cameras such as: SimpliSafe, Smart Things, and Wink.
How Are Smart Homes Impacting Real Estate?
Many homeowners who are considering selling are viewing smart home technology as an easy method to help increase the value of the home, or at least make it more desirable listing. This means smart home technology isn’t just associated with millennials, 33% are aged 35-54, and 24% are 55 and older. These statistics provided by the Coldwell Banker survey show how this has grown to become more-n-more mainstream within real estate. In fact, a recent statistics provided by CES (Consumer Electronics Association) and the National Association of Home Builders, sellers are investing in transforming their home to be smarter which can help boost the closing price by 3-5%.
What all of this translates to is connected homes are not only about adding convenience, it’s becoming a highly sought-after feature that adds real, tangible value to a listing, and moves a home faster. This also means smart homes are changing the type of buyers who are interested in purchasing such a home. This can’t be ignored since the same survey highlights that 81% of smart homeowners are willing to purchase their next home with similar technology in place.
In short smart homes are not only becoming a trend, but it’s here to stay and it’s impacting both sides of real estate: buyers and sellers.
If you want to know if there are any smart homes available, or being newly developed in the Santa Clarita Valley, feel free to contact me.