Smart Homes are a booming industry: by 2022 it is expected that 63 million houses are going to be connected in the US alone. The market revenue is projected to reach almost $29 billion dollars. There’s no doubt – smart homes are the future, and any savvy real estate professional should know the caveats. We’ve already written about the pros and cons of smart homes, so you should have a basic idea. But there’s one additional point worth mentioning – smart homes aren’t simply an expense; with proper setup, a smart home could be a smart investment that can pay for itself in the long run.
Cost of a Smart Home
Full costs can vary wildly, as some luxury custom systems can have a price tag north of $100,000. But if we’re dealing with something more reasonable, expect that costs will range from $675 to $2,190 with an average of $1,340.
Connected Smart Thermostats
According to The US Department of Energy, nearly half of all utility expenses are coming from HVAC (Heating, Ventilation, & Air Conditioning), making it a prime target for optimization through smart devices.
A smart thermostat is a device that connects to the smartphone via Wi-Fi and allows users to control heating/cooling settings. Being a smart device, it not only features setting a fixed temperature, it learns from owners’ preferences to create a custom energy-saving schedule. It will decrease energy consumption when owners are at work or during the night.
According to Nest, a smart thermostat can shave 10-15% off HVAC bills or approximately $140 per year. Top-of-the-line devices cost around $200-250, so buyers can expect to make the investment back in two years. However, many providers offer a rebate, making thermostats even more accessible and cost-effective.
Smart Lighting and LED Bulbs
Another obvious thing homeowners can save on is lighting. Smart systems feature a wide range of functions: they can dim the lights, change the colors, or even turn the lights off when there’s no one in the room. The actual savings from this are likely to be marginal, but the added convenience makes up for it.
When it comes to lighting, the real savings are in the bulbs themselves. A traditional incandescent bulb will cost $4.80 per year in electricity bills. Modern LED light bulbs are much more efficient and cost only $1 per year, that’s approximately $3.80 in savings. Sure, it doesn’t look like a lot on its own, but if there are 25 bulbs, the savings will be $95 per year.
Smart Power Strips and Plugs
Adding connected plugs is one of the simplest and least expensive ways to make the home smart. Devices like Wyze Plug or Kasa Smart Plug cost less than $20. Under the right circumstances, such a plug will save you a lot of money.
The primary use for smart power outlets lies in the ability to create custom schedules. Large devices with high energy consumption like dryers or heaters are a perfect choice here. For example, a smart plug for a huge dehumidifier will pay for itself in 17 days. That’s $42 in savings per month from only one device. If you can add in a few smaller devices to bring the total savings to $50 per month, we’re looking at $600 in savings each year.
Did you know that many household appliances keep draining power even if they are not actively used? These devices are often referred to as “energy vampires,” and they keep increasing the bills when in a standby mode. You might think that these costs are negligible, but they can total up to $100-200 per year. A strategically placed smart plug can slash this number.
Smart Sprinklers and Leak Detectors
Having a perfect lawn can be expensive: watering the yard every week during the summer will cost $50-156 per month. But it’s possible to have a yard that makes the whole neighborhood jealous without breaking the bank. The solution is a smart sprinkler.
These systems help owners to optimize the process and reduce water consumption. For example, smart sprinklers can determine the weather and stop if there’s rain, they can accommodate for soil moisture, and even the types of plants you’re watering. With a proper setup, it can save 30-50% of the water bill, or $50-200 during the summer alone.
A smart leak detector is another popular device among homeowners. It helps to find water leaks early and shut the water down before it has a chance to do any damage. This type of device is more about prevention. It won’t save a lot of money on a regular basis, but it can prevent an emergency and save thousands of dollars in damages. An additional benefit of leak detectors is that insurance companies often provide discounts if one is installed. It’s very similar to rebates and discounts for security systems.
While smart home systems won’t make a tremendous difference in expenses, the savings from them could be a nice bonus for any prospective homeowner. In many cases, it’s possible to save $500 or even more every year through these devices. Real estate specialists should be able to explain the benefits and provide numbers, to justify the increased price and convince reluctant buyers. Smart homes will become more and more popular. Learning more about them is one way to future-proof your career.
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