Can Smart Home Technology Increase Your Home’s Value?
A basement renovation, a kitchen upgrade, adding a third bedroom — these are all great ways to up the value of your home. But did you know that smart home and home automation systems may also increase your home’s value? And, as our world becomes ever-more dependent on the Internet of Things (IoT), a home integrated with smart features greatly appeals to a potential buyer.
Let’s take a look at home automation and learn how adding smart technology to your humble abode can increase its value.
What Is Home Automation?
Have you ever walked into a room and the lights automatically turned on? How about ringing the doorbell and being greeted by your neighbor — even though they’re at the grocery store? These are forms of smart home automation in action. You’ve heard of a “smart home” before, right? Basically, home automation and smart home go hand in hand. They mean that your home uses internet-connected devices that can remotely monitor and manage the technology in your home. Another definition for these interconnected devices is Internet of Things (IoT).
A home automation product is designed to make life easier for you, create a safer, more secure environment, and promote energy efficiency, which in turn saves you money. Even better, most of these devices can be controlled from a smartphone or tablet, so you can be alerted when the unexpected occurs — no matter how far away from home you are. Take a look at our beginner’s guide to setting up a smart home.
Examples of Smart Home Technology
IoT devices and technology continues to grow, and it’s not stopping. More and more devices are being created with Wi-Fi capabilities, meaning you’ll find smart home technology anywhere from smart smoke detectors to smart vacuums. Here’s a list of some common smart products:
- Smart thermostats
- Home security systems
- Smart smoke and CO detectors
- Automated sprinklers
- Water leak detectors
- Smart lights
- Controllable shades
- Other intelligent appliances e.g. coffee makers, vacuums, refrigerators.
The list is endless!
Even cooler, many of these smart devices can be controlled by AI’s like Amazon Alexa or Google Home — intelligent personal assistants that are integral pieces to a smart home automation system. Voice control will play a critical role in the future of connected technology, and their capabilities can continuously grow throughout your ownership when you install “skills,” which is done simply by downloading specific apps.
To get you started, we’ve highlighted a few popular products that will help make your home safer and smarter, and all of these devices can be controlled from your smartphone.
Smart security systems like Frontpoint Home Security System gets you a variety of connected devices to help keep your home safe and secure. And the best part is that it’s customizable and easy to use. In fact, you can set it up on your own in about 30 minutes — no wiring, alterations, construction, or professional technician is required.
To get you starter, their basic starter security kit comes with a control panel, two window/door sensors, two motion sensors, a smoke/heat sensor, and two water leak sensors. You can add more devices depending on the size of your home and what you want to protect yourself against.
Smart thermostats like Nest are great ways to control the temperature and climate of your home — and it’s equipped with energy-saving features to help reduce the price of your utility bill. Even better, the Nest Thermostat is so smart that it adapts to your life as it learns your behaviors. Do you turn the heat down when you leave for work? Nest makes note and will start doing it for you. On your way home from work? It’ll turn the heat up so you’ll walk in the door to a cozy home. And, you’ll be able to adjust the device from your phone, laptop or smartwatch so you’re in control no matter where you are. Here are some more benefits of smart thermostats like Nest.
Smart doorbells like Ring video doorbell lets you answer the door from anywhere using your smartphone, tablet or PC. You’ll be able to see, hear and speak to anyone on your property no matter where you are! As soon as Ring detects motion, you’ll get an instant alert, so you’ll have peace of mind that you’re still in control even when you’re not home.
Bonus! Having any of these smart home products can earn you a homeowners insurance discount as a way to reward you for your savvy behavior.
How Does Home Automation Increase Property Value?
So how exactly does having all this fun technology increase the value of your property? We’ve highlighted some top reasons people are looking at homes with smart technology already integrated.
Safety and security. Staying safe at home is a priority for most people, which is why home security is a key driver for smart home implementation. IControl Networks conducted a survey and found 90% of respondents said that home and family security is a top reason for them to purchase a connected home or adopt a smart home lifestyle. Having a home already equipped with a home security system in place will definitely appeal to potential buyers.
Energy efficiency. People are also looking at homes integrated with technology like smart thermostats and smart lights for energy efficiency. As potential buyers review home energy usage data, having a lower utility bill because you implemented smart devices is appealing when a prospective buyer compares your annual home utility consumption to other homes in that area.
Comfort and convenience. Many people find that smart home technology creates a more comfortable and convenient environment. Whether it’s entertainment technology like smart TVs and built-in speakers, or lights and blinds you can control from your phone, people are looking for immediate benefits.
The excitement over smart home tech and IoT continues to grow, and industries are catching on to what people really want. People are searching for simple devices with obvious benefits. A report by Markets and Markets found that “41 percent of people have already adopted at least one smart home device, with their favorites being connected appliances (20 percent), thermostats (16 percent), security (12 percent) and lighting control (10 percent).”
Is It Worth the Cost?
Smart products fall on all ends of the price spectrum, but the important thing to keep in mind is that the technology is a long-term investment. With certain products, homeowners are reaping the benefits of decreased energy and maintenance costs, and benefiting from lower home insurance premiums. Home buyers are expecting to pay more for homes with smart systems in place, so investing in smart technology now means you can make your home more appealing to a potential buyer and perhaps even sell your home for a higher price in the future.
We’re always looking for ways to help you protect what matters most. Learn more about smart home technology with American Family Insurance and connect with an agent to learn how you can save on your homeowners insurance by having qualifying smart home products.