In India, there is a growing preference for smart homes among homebuyers. As per an industry report, the smart homes market is estimated to grow by 9.14% from 2024 to 2028, reaching a market volume of $9.2 billion. Many real estate developers are incorporating smart home technologies in their projects, catering to the growing demand from buyers seeking a new-age lifestyle and convenience. For homeowners, incorporating smart home features in a house can greatly increase their property’s resale value. However, if the owner is planning to sell a smart home, they must realise the process may differ somewhat from that of a traditional property. In this guide, we bring some key considerations for property owners planning to sell a smart home.
Selling a smart home vs a traditional home: How is it different?
Buyers’ preferences: When marketing a smart home, the seller may have to modify their strategy. In a traditional property, the emphasis is usually on the property’s physical aspects such as size, architectural features, outdoor areas and location. On the other hand, a smart home owner can highlight the lifestyle advantages of a smart home, including energy efficiency, voice-activated lighting, smart appliances, advanced security systems, etc.
Pricing: Given the numerous features and advantages, smart homes have a higher resale value compared to a traditional property. At the same time, property buyers are willing to pay more for a property that comes with smart systems. This speeds up the property selling process for both parties.
Home staging: Preparing a house for sale involves standard repair and renovation. However, in the case of a smart home, the seller must ensure the systems are fully functional and reset to the new owner’s accounts, if applicable.
Things to consider when selling a smart home
Conduct property valuation
Property valuation is one of the initial steps in the home-selling process. Property values are determined based on numerous factors such as location, property size, structural condition of the property, current market condition, etc. The presence of smart features can make the property valuation slightly more complex. The seller must identify the smart features they want to keep and consider their price trends when evaluating the property. It is also crucial to understand the demand for smart homes in the neighbourhood, as it will directly impact the property values.
Perform cost-benefit analysis
Property sellers must consider various factors, such as the property’s features and buyer preferences, to ensure they get a profitable deal. Typically, homebuyers check for structural condition, location advantages, area and number of bedrooms in the house, fixtures and fittings, parking, etc. Technology may not be a priority for many. If the demand for smart homes is less in the area, the owner must consider ways to reduce the losses. One way to achieve this is to take removable fixtures, such as smart cameras, smart bulbs, etc., along with them.
Highlight smart features
Not every smart feature may appeal to potential buyers. It is crucial to assess the demand for smart homes in the area and understand buyers’ preferences. However, if the demand for smart homes is high in the area, the house is likely to fetch a higher price. Before listing the property for sale, the seller must identify the smart devices the property includes, such as security systems, lighting, appliances, thermostats, etc. Consider replacing outdated or non-functional features with the latest ones. When listing the property and negotiating with prospective buyers, sellers must talk about the core benefits of these smart features, including convenience, energy efficiency and security. When listing the property online, sellers should mention terms like ‘smart home’ or ‘home automation’ to attract potential buyers.
Upgrade with new features
Sellers can consider installing the latest smart home systems, which can significantly increase the property’s value. Consider upgrading the house with the latest smart home features. This should be done in addition to making the standard upgrades, such as adding a fresh coat of paint to the walls and installing new fixtures and fittings in kitchens and bathrooms.
Reset systems to ensure privacy
Before closing the property deal, property sellers must ensure to factory reset the devices in their home. The process is mostly done online, while some devices have an in-built option to factory reset. This is a crucial step to ensure the seller’s data is protected and there are no hassles for both parties. During property visits, sellers can educate buyers on operating smart devices and inform them about security protocols.
Housing.com News Viewpoint
Selling a smart home may involve some additional steps compared to a traditional property. This includes checking if the smart devices are functional and making the necessary upgrades, taking steps to protect the existing owner’s data by resetting these devices and listing out the high-tech features the property has to offer for buyers. Sellers can thoughtfully showcase the most important features of their property that can add real value in terms of security, convenience, energy-efficiency and lifestyle.
When considering upgrades, sellers should focus on features that would justify a higher asking price. For this, it is essential to assess the buyers’ demand and preferences in the neighbourhood. Working with an experienced real estate agent can be beneficial for first-time sellers.
FAQs
Do smart home features increase the property’s resale value?
Popular smart features aimed at offering convenience, security, energy-efficiency and lifestyle advantages can enhance a property’s value. These include automated security systems, smart lighting, thermostats and energy-efficient appliances.
Should you reset smart devices before selling the house?
Before the final handover of the property, sellers must remove their personal accounts from their smart devices and reset them to factory settings. This will protect their privacy and offer a smooth handover process for buyers.
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