Did you know that a third of all homes in America currently meet the requirement to be called a “smart home,” and that is expected to rise to 54% in less than 24 months? What are you doing to properly market your listings accordingly? How are you studying the trend to make sure people that need accessibility features of smart homes are accommodated?
This was the very topic at hand at a lively panel at the 2021 REALTORS® Conference & Expo led by Craig Grant, CEO of The Real Estate Technology Institute & RETI.us and Brandon Doyle, a Maple Grove, Minnesota Realtor and host of “Home Tech Decisions” on YouTube. The overarching theme of the discussion was the benefits of smart homes to the real estate business.
Grant notes that it doesn’t take large investments to make a house a smart home. “Just having a few devices in specific categories, such as certain lighting, security cameras, or appliances, qualifies a home to be a smart home,” he notes.
To call a home “smart,” it must have a reliable internet connection and smart items in at least three categories, and may then be marketed as such.
“These homes were once only for the ultra rich, but we’ve gone from only super-wealthy people like Bill Gates having these products to every home now having at least one or two smart items,” said Doyle, who jokes that companies like Amazon basically give away these devices as a “gateway drug” to other connected devices.
The two presented data revealing that 26% of Baby Boomers currently have smart home technologies in their homes, 49% of Generation Xers, and 77% of Millennials.
This data implies that rapid increase you should expect in the market, as consumers increasingly own smart home features, but will also expect them as part of a listing.
The panelists note that it is not just novelty that consumers seek, but ease of use and accessibility, thus the popularity of products like lighting systems, carbon monoxide detectors, and digital thermostats.
“Smart home technology can now be used by seniors and those with disabilities to assist them in day-to-day activities,” noted Grant. He adds that real estate professionals play a role in being able to educate senior buyers and their families of how smart homes can aide their lives. He illustrates with the examples of smart home devices that detect falls, voice-activated features like curtains, and aides that help the visually impaired and hearing impaired.
The panelists acknowledged the risks associated with smart homes (like the vulnerability of not changing passswords from the default or when moving away, and the listening features of smart devices), but ultimately conclude that settings can often disable these features, and that the rewards outweigh the risk.
They also asserted that Realtors have an obligation to know all rules and requirements regarding selling a smart home, such as explaining what devices are included in the close of a property, and disclosing any hazards, as well as adhering to all privacy laws.
Although not woven into the panel, the National Association of Realtors (host of the annual conference) does offer an inexpensive, 12 credit hour certification course, “Smart Home Certification” which could be the shorcut to understanding your obligations when selling or marketing a smart home.