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Integrating smart home technology can increase a property's resale value by up to 5% and help it sell faster, according to the National Association of Realtors (NAR). However, the return on investment (ROI) for these high-tech upgrades is less guaranteed than for traditional renovations like kitchen remodels. This guide breaks down what sellers need to know about the value of smart home features, based on analysis of the latest market trends from events like CES 2025.
Today's buyers are increasingly looking for a combination of convenience, energy efficiency, and integrated technology. Based on our experience assessment, properties that prioritize these elements are often more attractive. Buyers are captivated by AI-supported security systems, smart thermostats, and high-quality smart appliances. Furthermore, sustainable features like solar panels, EV charging stations, and intelligent lighting are becoming significant differentiators in the market. This shift means a home's technological infrastructure is now as important as its architectural appeal for a growing segment of purchasers.
The trend was prominently displayed at CES 2025, where brands like Samsung and LG unveiled new AI-integrated appliances, from refrigerators to HVAC systems. For example, LG's new AI Concierge for televisions learns user preferences to provide content recommendations. While these gadgets are innovative, their direct impact on home value depends on seamless integration and addressing genuine buyer needs like security and energy conservation.
The financial outlay for converting a standard home into a smart one varies significantly. On average, homeowners can expect to pay between $2,000 and $4,000 for a basic home automation system, according to data from Today's Homeowner. The final cost depends on the home's size, the complexity of the installations, and the specific products chosen. Individual device costs can range from $129.99 for a smart Wi-Fi door lock to nearly $60,000 for a top-tier, large-format AI television.
It is crucial to view these upgrades as an investment with variable returns. Unlike a kitchen renovation, which typically offers a more predictable ROI, the value added by smart technology is highly market-dependent. The investment is more likely to be recouped in areas with tech-savvy buyers who actively seek out these features.
Yes, smart home features can be a decisive factor that makes a property stand out, potentially shortening its time on the market. Hannah Jones, a senior economic research analyst, notes that the share of listings boasting 'smart home' features has grown, reaching 1.6% nationally in 2024. These gadgets can create a perception of a modern, move-in-ready home, which is particularly appealing to buyers. While they may not always guarantee a specific dollar-for-dollar return, the competitive edge they provide can lead to a quicker sale and, in some cases, a higher final selling price, especially in markets where innovation is prized.
A critical, often overlooked, aspect of selling a smart home is defining what is included in the sale. Built-in appliances, such as smart ovens and integrated refrigerators, are typically considered fixtures and should remain with the home. Removing them could negatively impact the home's salability or require you to pay for replacements. Conversely, freestanding smarter appliances like washing machines or televisions generally do not affect the home's attractiveness and can be taken with you.
To avoid disputes, it is essential to specify every item in the purchase contract. Clearly list which smart devices are included and which you plan to remove. This transparency ensures a smooth closing process and manages buyer expectations.
Upgrading to a smart home can enhance your property's appeal and potentially its value, but it is not a guaranteed investment. Focus on integrated, energy-efficient systems that appeal to modern buyers. Most importantly, clearly outline in the sales contract which smart features are included to ensure a seamless transaction.
