How Do Smart Homes Affect Real Estate Value?

by | Jan 20, 2019

Contact WILLIAM!

Call:  (212) 405-1468
Email: [email protected]
Visit: 888 Seventh Avenue, 39th Floor New York, NY 10106

These days, it seems like we’re inundated with commercials for smart appliances for our homes. From refrigerators that can tell you the weather when you ask for it, to stoves that can turn themselves on via voice command and security systems you can arm from an app on your phone, the increase of technology being woven into our daily living routine is cause for examination. All of these appliances make your life easier, sure, but can they actually increase the resale value of your home? Do buyers generally want smart technology? Is that an incentive for prospective buyers when they’re considering where they want to make their move?

Studies have shown that the answer is yes, especially amongst younger buyers. In one such study done by Consumer Reports, smart home features can reportedly increase the resale value of your home by up to 5%! Though this definitely depends on the amount and level of technology you have added to your home, and an ROI of 5% is certainly not guaranteed, you could see other benefits: according to real estate agent Angel Piontek, homes with smart technology may generate more interest, or a faster sale, especially in luxury homes or in homes that are very similar to the others in the area. Having smart technology installed in your home can make it stand out in a crowded market. Real estate agents have started using the presence of smart appliances in a home in their valuation of a property.

Smart technology can also keep you safer and healthier, through appliances like smoke and carbon monoxide detectors, air quality monitors, and intruder alerts, smart locks, and security cameras. The smart smoke alarms can be a lifesaver if you’re forgetful about changing the batteries in your old smoke detectors. Some devices also allow you to keep an eye on pets while you’re at work or away! These pieces of technology are not only a good investment for your potential resale value, but they add a level of security that buyers, especially families with kids, really look for in a home. As with any technology where your data is being used, it is especially important to use two-factor authorization for associated accounts when available, use unique passwords, and change the passwords regularly, just as you would with your email accounts or other personal digital data.

Having smart appliances in your home can also reduce the amount of energy you use and increase the amount of money you save on your energy bills. Things like a Nest or Ecobee thermostat, for example, can not only sense how many people are in a room and adjust the temperature accordingly, but you can also control the thermostat from your phone remotely. According to Nest’s website, their thermostat can save homeowners 10-12% per month on heating costs, and 15% per month on cooling costs, which means that the appliance pays for itself pretty quickly. Smart washers can provide great savings on water use as well, typically using about half the amount of water that a regular washer uses. These hard numbers, when given to potential buyers, can really put into perspective how much these types of appliances can benefit them.

While smart tech is becoming increasingly more appealing to home buyers, not all of these gadgets are going to show a significant, if any, addition to your resale value. It’s important to choose which ones you choose to install wisely. Appliances that are energy-savers or which add safety features are amongst the most desirable, while sound systems and smart mirrors are not the most impressive feature of a home. Older buyers may be more wary of a staggering amount of technology, and they are likely to have technology that may not be compatible with a lot of newer, app-based appliances, so knowing the market that your home is in and which buyers you are looking to attract will help you in choosing the right investments in smart technology for your home.

"William Bolls is THE broker you want when buying and selling in Manhattan"

"William Bolls is THE broker you want when buying and selling in Manhattan. He is a wealth of knowledge and really takes the time to make sure you understand the process and are getting exactly what you want. I can't recommend him highly enough, and send him to anyone I know looking to buy and sell, especially the UWS."

Sarah S.

"William was able to find me my perfect first apartment in Manhattan"

"William was able to find me my perfect first apartment in Manhattan and then 5 years later he guided me seamlessly through the sale. William was always friendly and responsive and he answered every one of my random texts! He is a genuine pleasure to work with!"

Edward H.

"“I can't imagine purchasing a property in New York City without William"

I can't imagine purchasing a property in New York City without William. As an out-of-town buyer, we faced additional challenges when we decided to buy an apartment in the city. As cliched as it sounds, William truly made us feel like his only clients. It's not a simple process and we required a decent amount of hand-holding. He was there for us every step of the way, even anticipating a lot of our concerns. One of the most valuable characteristics of a good agent is responsiveness. Any time we contacted William--and it was often--he responded quickly and completely. William will definitely be our agent on future transactions.

Tim M.

"The market was tough, but William stuck with it and brought it home"

I worked with William over a lengthy period, trying to sell a lobby level doctor's office in a residential co-op building on the upper west side. The market was tough, but William stuck with it and brought it home. He showed patience and was always straightforward, honest and friendly throughout the process. Definitely 5 star.

Matt R.

Start Your Search Today

The Corcoran Group is dedicated to personally delivering the best guidance in real estate world. For the finest Upper West Side expertise contact William Bolls.