As smart home technology continues its unprecedented growth, its spillover effects are beginning to be felt in a number of other industries. This is no truer than for anything but the real estate industry. As people begin to upgrade and equip their homes with the gadgets and tech of the future, it is only natural that home values and prices also subsequently increase.
In a recent survey conducted in the US, more than half the respondents indicated that they would be willing to install smart home solutions in order to increase property value. With trends such as these taking hold in the real estate market, it is only clear that real estate agents need to be equipped to leverage these features as a part of a home’s value and appeal.
This blog takes a look at the key facts real estate agents are required to possess before making a smart home sale, ensuring that the exchange of value corresponds to the ultra cool features the property possesses. So if you’re wondering how to be a better real estate agent, take a look below!
What does the demand for home automation look like?
In order to make an effective sale, one of the most critical aspects to understand is how demand for smart home technology works. Unsurprisingly, its biggest and most enthusiastic buyers come from the millennial demographic. While they do form a core part of demand, however, this is not to say that older generations are resistant to such devices and solutions. In fact, they too are moving into home automation, predominantly for greater security.
With 46% of consumers saying they want their present or future home to be equipped with smart home technology, real estate agents face an only increasing demand for automation in the coming years. While one may think that higher incomes have something to do with demand, this is not necessarily so. The same survey mentioned above, shows that even individuals making a basic salary of USD $50,000 - $100,000 per year, are willing to move in on the home automation trend.
Selling comfort and convenience as a way of life
Given the range of features and capabilities many smart home devices possess, even the staunchest naysayers find it difficult to deny their utility. Even if you’re selling a home with just one device/solution set up, this is more than enough to create demand for your property. This is because even if people start with just one device, they are likely to move onto more smart home technology after some time. Such homes are, therefore, ideal for families who have either just gotten into home automation, or are looking to do so in their new home.
Either way, home automation only make a property easier to sell, not the other way around.
What are the main drivers?
Similar to understanding demand, it is also important to recognise the reasons why people move towards home automation. While different demographics prioritise different factors, the key motivators for smart tech adoption are generally greater security and energy efficiency/cost efficiency. For instance, research from a few years ago indicated that at the time, a staggering 63% of people wanted to add smart locks and alarms to their homes in the near future. At that point, smart security cameras and services accounted for around 61% of all smart home revenue in the US.
Thus, knowing the type of buyer you’re selling to, really helps when it comes to leveraging the existing smart home capabilities of a house on the market. Strategies and tactics can thus be tailored, dependant on the home automation requirements of a particular type of buyer.
Data security concerns
However, despite all the good that smart home technology brings, buyers are only beginning to become more concerned about the security of their data. Understandably, any device that connects to the internet and stores an individual’s personal data is bound to create concern, especially when being transferred to a new owner.
It is therefore important that when devices are being transferred, that its factory setting are restored. If sellers are anxious to increase their data security, agents can direct them to manuals that can be found online, which direct individuals on how to increase their security when transferring smart device ownership in the sale of a home.
The smart automation industry is blowing up and it is absolutely pivotal that real estate agents and companies get in on the trend. Knowing how demand for these devices work and paying attention to individual requirements, is absolutely necessary in order make effective sales in the long run. These real estate agent tips can and will ensure that you’re fit to capitalise on the smart home takeover of the future.