When It Comes to Smart Homes, Connected is Expected
It was not that long ago that smart home technology and smart home security were thought to have limited interest among home buyers. These “connected homes” were believed to fit the lifestyles of the rich, famous, and technologically gifted. But today, the reality is that almost everyone desires having a connected home. Whether you are building or selling starter homes, or homes in 55+ communities, smart security products are becoming a desired and even expected feature among home buyers.
According to a 2017 Home Buyer and Seller Generational Trend report by the National Association of Realtors, the smart home market is expected to become a $130 billion industry by 2020. And smart home technology is no longer solely piquing the interest of early adopters or tech-minded millennial’s. In fact, 43 percent of Americans with smart home products are millennial’s 33 percent are aged 33-54; and 24 percent are age 55 or older.
Grayling Love, a member of the NAHB Leading Suppliers Council, wrote in that organization’s newsletter, “We’ve reached a point where the majority of consumers aren’t only willing to invest in it, but they are expecting their next home to be connected.”
What is driving this expanding interest in smart homes? Across the board, and across the generations, security and convenience are of primary interest. Security is exemplified by devices like smart door locks, smart video cameras and doorbells, and smart lighting. And convenience is added to security when these devices can be controlled remotely from mobile devices.
And just as with kitchens and baths, the ability to increase a home’s value is another reason why smart security is catching the interest of a wide range of home buyers. According to the NAHB and the Consumer Electronics Association (CEA), installing smart home technology can increase the final closing price of a home by 3 to 5 percent. And a recent Coldwell Banker survey found that 72 percent of millennial’s are willing to pay $1,500 or more, and 44 percent are willing to pay $3,000 or more to make their home smart. These devices not only add value, but they are increasingly being offered at lower prices. Smart lock manufacturers offer a wide selection of connected locks with a range of capabilities and price points.
Who is knocking at the smarter door?
Tech-savvy millennial’s still thrill to the “cool factor” of living in a home with the latest and greatest technology. But they are not the only category of buyer that is enjoying the benefits of smart security. This pool of prospective buyers is diverse, and it is expanding. Some of them, what we call “Smart Home Savants” don’t need any encouragement to try out smart security products. These prospective customers are “ready to convert” and in fact are likely to already have connected smart products.
Others may need some education to be converted. They may not be readily aware of all the potential applications for smart locks, and the reasons why home buyers of their particular generation, with their means and their life situation might want to own a connected home with smart security. Here are some tips for reaching out to these types of consumers.