The Rise of Smart Homes: What Buyers and Sellers Need to Know

Smart home technology is rapidly becoming a key feature in countless residential properties, reshaping expectations in real estate markets worldwide, including the Twin Cities. As homes become more connected, both buyers and sellers must understand the implications of this technology on property values, market attractiveness, and overall livability. Here’s a look at how smart homes are integrated into today's housing market and what it means for you.

What Is a Smart Home?

A smart home is a household equipped with a series of systems, technology and gadgets designed to make life easier and save us time by automating specific tasks. These devices are connected to the internet via Wi-Fi and can be controlled remotely with an app from your phone or tablet. Common smart home devices include thermostats, automated lighting, advanced security systems and voice-activated assistants like Google Home or Amazon Echo.

If you have a Ring camera, a Samsung washing machine or a Nest Hub, you’re already on your way to becoming a smart home! Other common smart home devices include:

• TVs
• Refrigerators
• Dishwashers
• Garage door openers
• Video doorbell
• Washers and dryers
• Security systems
• Lights
• Thermostats
• Speakers
• Home appliances
• Vacuum robots

For many people, having these devices around the home provides enhanced convenience, energy efficiency, security and comfort. Smart home gadgets often communicate with each other and operate together, sharing data and automating tasks based on your preferences. According to consumer trends and insights, more than half of homebuyers (7 in 10) are looking for a smart home, and 78% are willing to pay more for a home equipped with such devices. ​

The Market Demand for Smart Homes

The demand for smart homes has skyrocketed in recent years, driven by advancements in IoT (Internet of Things) technology and a growing consumer focus on living in more technologically sophisticated spaces. According to industry research, the global smart home market is expected to exceed $163 billion by 2028, indicating not just a trend, but a fundamental shift in what people expect from their living environments. In cities like Minneapolis and St. Paul, where the climate can vary drastically, the appeal of features like smart thermostats and automated lighting systems is especially high, as they offer both cost savings and comfort.

Selling a Home With Smart Devices

When you’re selling a home equipped with smart devices, it’s important to understand what must stay and what you can take with you. Certain devices and systems meet the definition of a “fixture” and will have to stay with the home unless specifically excluded in the contract. If you’ve grown attached to your devices, we recommend removing any that you’d like to keep before listing. Here are other considerations to keep in mind when selling a smart home:

• Make a list of all smart devices that will stay with the home. This might include garage door openers, smart locks, Ring cameras, thermostats and security systems.
• Smart devices often hold sensitive information. As a seller, remove all personal information from the devices that will go with the home and reset them to factory settings. Consult the owner’s manual or website of the manufacturer if needed.
• If you still have the original boxes or manuals of the smart devices that are staying with the home, leave them for the new owners —  just in case.
• Note if any of the smart devices that are staying with the home require a subscription fee to use. You may need to disclose this information to buyers, and cancel or transfer the contract upon selling the home.
• Consider offering to be available by phone, text or email for a few weeks after the sale to answer any questions about the smart home systems. This can be a reassuring gesture that may help close the sale more smoothly.

Selling a home with smart devices offers a unique opportunity to attract tech-savvy buyers and potentially increase your property’s market value. By ensuring that all devices are properly reset and all relevant information is communicated upfront, you can facilitate a smoother transition and enhance buyer confidence to secure a successful sale of your smart home.

What Buyers Need to Know About Smart Homes

As the demand for smart homes increases, buyers entering this market should be well-informed about what to expect and how to evaluate smart home technologies effectively. Here are key considerations for buyers:

• Check if the smart devices are compatible with platforms like Google or Apple and assess their ability to integrate smoothly with other technologies in the home.
• Understand any ongoing costs associated with the smart devices, such as subscriptions for security monitoring and software updates.
• Ensure that all smart devices are in good working order and can be updated as technology advances. Consider a professional inspection for an in-depth evaluation.
• Investigate the security protocols of the smart home systems to protect yourself against cyber threats. Reset all devices to factory settings (if they haven’t already been reset by the seller) upon moving in to safeguard your personal data.
• Consider how the smart features align with your lifestyle needs and whether they justify the investment. Think about potential energy savings and the impact on the home’s future resale value.

​When considering a smart home purchase, it’s essential to look beyond the allure of new technology. Ensure that the smart features enhance your quality of life and are not just an added complexity. By focusing on these factors, buyers can make informed decisions that optimize both the functionality and financial aspects of owning a smart home.

Interested in Smart Homes? Contact Us

If you're considering diving into the smart home market or selling your smart-equipped property, Golden Homes Group MN is here to help. Our experienced team understands the nuances of modern smart home technologies and can guide you through the buying or selling process with expert advice and support. Contact us today to get started!

Sheri Wessel
Office: 651-379-5252
Mobile: 651-270-7157
Email: [email protected] 

Melaney Thelander
Office: 651-379-5252
Mobile: 651-500-8789​
Email: [email protected]