You can't go far these days without encountering something "smart" and appearing crucial to our lives, from our phones and televisions to our cars, watches, and, on a far wider scale, our homes. Smart homes are now being upgraded with technology that allows owners to remotely control their life.

So, exactly what is a smart home? A smart house, according to Coldwell Banker, is one that is outfitted with smart goods that are linked by Wi-Fi or Bluetooth to control or automate the functions of the home. This includes "thermostats that learn to automatically adjust the temperature based on your schedule, lightbulbs that you can control from your phone, and doors that automatically lock when you leave the house," according to the real estate agency's Smart Home Technology website.

Computers, audio/visual, surveillance cameras, landscape components, air quality monitors, and smart appliances are all eligible for remote control through smartphones.

The phrase "smart house" was coined in the early 1980s by the National Association of Home Builders to describe an automated "intelligent" home that "responds to the dweller's needs and desires by adjusting lighting, temperature, and even ambient music." The advantages were "safer, more comfortable, and more economical dwelling."

Today's smart home has emerged as a result of relatively low-cost electronic devices that can be controlled by a smartphone or tablet, with data accessible online via a centralized interface. According to the National Association of Realtors Field Guide to Smart Homes, the most common reasons homeowners and renters seek smart home devices are security and energy management.

Is It Worthwhile To Pay For A Smart Home?

According to the Coldwell Banker Real Estate 2016 Smart Home Marketplace Survey, over half of the customers asked (45 percent) either owned or planned to invest in smart home technology. Furthermore, more than half of homeowners (54 percent) would buy or install smart home goods if they were selling their homes and knew the devices would help the home sell faster.

65 percent of those who would invest in smart home devices would pay $1,500 or more, and 40% would pay $3,000 or more to make their home "smart." Millennials are marginally more interested in investing in smart technology.

However, the poll discovered that smart home technology is not just for the wealthy. Americans with earnings ranging from $50,000 to $75,000 are embracing smart home technology at about the same rate as those with incomes ranging from $75,000 to $100,000.

"Smart homes are not necessarily more expensive than other comparable homes," said Angel Piontek, a Coldwell Banker Elite realtor associate in Fredericksburg, Virginia.

"You can invest in multiple products to make your home a smart home from a selling standpoint for less than $1,000." In today's market, a smart home may be found at any price range and income level."

As a result, Piontek believes that investing in a smart house is worthwhile. "Currently, it creates a significant differentiating factor in the market, which may help your home sell faster."

Another study conducted by Coldwell Banker last year discovered that 57% of those looking for a move-in ready home would consider an older home renovated with smart home technology. Smart home technology is a prerequisite for 44% of people looking for a move-in-ready property.

"The ubiquity of smart products has rapidly increased over the past few years," Piontek added. "In the luxury market, a home that lacks smart home elements is almost at a disadvantage." A high-end house seller is likely to invest in smart goods simply to compete in the market. In the near future, we will see the same expectation at every price point."

The NAR, on the other hand, paints a different picture. The great majority of clients, almost 80%, do not even inquire about smart home technologies. According to the NAR's 2016 Smart Homes & Realtors report, slightly more than half were unfamiliar with what was offered.

Only 42% of Realtors stated their clients were interested in smart home gadgets, and only 22% were interested in whole-house technology. Similarly, 42 percent of Realtors want a NAR Smart Home certification, while 22 percent do not. Those who are interested are often full-time, middle-aged agents with at least 16 years of experience.

According to Chad Curry, managing director of NAR's Center for Realtor Technology, the figures provide a fantastic opportunity for NAR members to educate themselves and their clients about smart home technology.

Agents should not only try out some of the products but also assist their clients in finding rebates and prizes for smart technology offered by some insurance and energy companies, according to Curry. Smart home products also make excellent farewell gifts.

Client Communication Concerning Smart Houses

Piontek recommends the following advice to agents advising clients on smart homes:

• Keep in mind your ideal buyer. You should be prepared to provide your client with general demographic information on the home's potential buyer. What does the buyer want to see in the house? What kind of comforts do they desire?
• If a customer has an older property, suggest that they consider products that will extend the buyer pool by improving aging systems. Install a smart radiator valve, for example, if the older home has a radiator, to control the valve remotely and track energy use.
• If the client lives in a location with regular water shortages, investing in a smart water meter will provide the distinguishing aspect that most buyers will notice.

"Simply having the products in the home isn't enough," she explained. "Working with a real estate agent who understands the value of the products and how to market them is critical." If an agent cannot correctly communicate the value of a gadget, it may as well not exist.

"It is the listing agent's responsibility to educate buyer agents who are showing the property so that they can, in turn, show their clients." Because some smart goods may be deemed personal property, buyers must be informed of what is being given and include it in the contract, according to Piontek.

According to the NAR Smart Home survey, the top issues Realtors discussed with clients were security and privacy (36%), followed by cost (31%).

Regarding consumer demands, 37% of Realtors said clients value smart home device locks the most, followed by lighting (29%), and thermostats (26%). According to Coldwell Banker's assessment, having just one type of smart technology isn't enough to qualify it as "smart." Sixty percent thought a smart house had to feature at least three kinds of smart technology.

Curry believes the main issue with smart home technology is interoperability, or how the devices communicate with one another. For example, if a smoke alarm goes off, a camera should be able to detect the source of the smoke, disable the alarm, and adjust the temperature to eliminate the smoke.