The technological advancements of the past few decades have been truly amazing and have resulted in some crazy inventions. One area of our lives that has seen some of the biggest technological advancements is our very own homes. Tools like the house payment calculator have come out in recent years to make owning and buying a home easier, but even these tools pale in comparison to what a smart home can offer. A wide range of advancements has improved our home’s functionality and ability to complete certain tasks, so much so that these technologically advanced homes are referred to as “smart homes”. There’s always been science fiction and myths about what a smart home would look like, and now these fictional stories aren’t far off. Homes can now listen to voice commands, heat and cool themselves without a thermostat being touched, and can automatically turn lights on and off. When it comes to security homes can now alert you when intruders are nearby and allow you to monitor your home no matter where you are in the world. So with all of these technological advancements to homes, what effect do they have on home prices and the housing market? Here are some ways that smart technology can affect home prices and play a role in the housing market.
Target (News - Alert) Market
One of the biggest ways that a smart home will affect home prices is the shifting of your home’s target market. A smart home typically involves a lot of technology that can be quite difficult to grasp. As a result, older generations of buyers may be turned off from buying your home as they don’t have the technological prowess to take full advantage of it. However, generations that grew up with technology will love the smart aspect of your home as they will be tech savvy enough to properly use it. Your home will also be viewed as modern and newer when it has smart technology, further attracting younger buyers. You can use this to your advantage as identifying and targeting the right buyers for your home can save you a lot of time and can even allow you to charge a higher price if you play your cards right.
Increased Security
One way that smart technology can affect your home prices is the increased security it can offer. There are many advanced forms of security systems out there. A lot of these systems greatly improve the security of your home and can even allow you to monitor it from your phone. Your home’s security is extremely important, as a break-in could result in thousands of dollars in damages and countless memories being defaced or destroyed. This is why smart homes will typically be valued higher on the real estate market, as the increased security is extremely valuable. In addition, having smart security systems could you allow to save money on things like homeowner’s insurance, since you are at a much lower risk of being a victim of crimes like robbery or burglary. This factor will only add to your home’s value and make it more attractive on the open market.
Improved Resale Value
If you purchased a home for a certain price and then made upgrades to it, then logically the value of your home would increase. The same logic applies when you implement elements of a smart home into your home. Upgrading your home’s security system, thermostat, entertainment qualities, and other technological advancements to your home can greatly improve your home’s resale value. As mentioned before, smart homes seem modern and up-to-date, so they will attract more buyers that are willing to pay more. If you’re looking for a big increase in your home’s resale value, then incorporating some elements of a typical smart home into your home may be a great idea.
Shorter List Periods
One major benefit that a smart home can bring to a market is the shorter list period that you have to deal with. As mentioned before, having a smart home makes your home appear more modern and up-to-date, something that can be a big help in finding a buyer. In addition, the aforementioned boost in your home’s security will be another attractive feature, helping it fly off the market. Smart home technology can add a lot of attractive features, meaning that it will not only add value to your home, but will help it sell extremely quickly.
