How Home Automation Can Increase Home Value

Have you ever thought about turning your home into a James Bond-esque gadget automation setup? Imagine walking into your home on a dark winter’s evening, and by merely saying the word “lights,” suddenly, your home is lit up in an instant.

And, what if adding such features increases your home’s value and its appeal to future buyers?

Let’s explore some ways in which home automation can increase your home’s value and whether it’s a viable option for you.

Firstly: Should You Invest in Automation?

You need to bear in mind that not every piece of technology is going to increase your home’s value; the technology needs to be current, have longevity, and make you stand out from the crowd. For example, a budget-value wireless thermostat isn’t going to make much of a difference, since they’re relatively easy to purchase, install, and use.

However, investing in 5-figure home security, heating, and lighting all-in-one system is going to make more of a difference to the property value—it’s more complex and less common, making it more valuable and attractive, and requiring an extra level of expertise to install. All of these features bring value to the market, and therefore your home.

Keep in mind that the market value of your neighborhood will have a ceiling. If your property is in a less-wealthy area, investing in an expensive home automation system is most likely going to be a waste of money. Yes, you could argue that your home will then be “the best in a bad area,” but that’s just not enough—other market forces will prevent your property value from elevating.

Affluent areas—on the other hand—are going to have a softer market value cap, if any at all. If you’re unsure of whether to invest or not, your best bet is to contact a real estate broker who will be able to provide more of an insight into your local market.



Knowing that your property is protected when you’re out at work or out with the family for the day can really fill a peace-of-mind gap. How would you feel if that as soon as you lock your front door, your property’s security system kicks in, without you having to remember to set the alarm manually? Gone are the days of you being 30 minutes down the road, pondering whether you remembered to set the alarm or not.

Added security is a feature that property buyers look for, and so elevating this smart feature in your home can be considered a sound investment. If you add in the possibility of your home alarm system being linked to a security company, then you have an extra level of value that’s already installed for a potential buyer.

Appeal to Consumer Technology Needs

Who knows, soon enough we might be living in a fully-automated world—the current gen seeks a more hands-off approach, with Alexa and Siri being able to answer most of our day-to-day queries in an instant.

This is filtering down into home automation and greatly appeals to the “now generation” and of us needing things to happen instantly, so we can multitask and focus on other features of our lives. We have to question whether this is actually important or not, and if you think about it, it isn’t. But it’s real, and it’s in demand. And so walking into your home saying, “heating on,” “lights on,” or “play my latest, cool Spotify playlist RIGHT NOW … please?” can really appeal to a home buyer.

However, not everyone needs this level of features, so don’t expect that by increasing your home automation levels you’re going to appeal to everyone; it’s simply not going to happen. Although, you could argue that, depending on your neighborhood and your market demographic, for the relative ease of installation and affordability you have a great chance to sell your property, and at a higher value, especially if you bundle up and market your home’s smart features through your real estate agent.

This brings us conveniently to pass comment that you’re reliant on your broker to really push the smart features, and not to expect a potential buyer to notice them in the marketing information or when they viewing the property. The onus is on you to make sure the broker is hot in this!

Standing Out From the Crowd

Rachio Gen 2

We like to be the best, don’t we? It seems that humans have evolved for survival, and to drive us into a competition to beat our peers. Even with the popularity of minimalism surging, we still need the latest bells and whistles.

Whether this appeals to you or not, if you’re the only household in the neighborhood that has home automation features, then you’re you’re going to stand out. There’s no doubt about it. Because of this factor alone, and as long as you’re not already at the market cap, you’re going to be able to command a higher market value on your property. Bragging rights kudos +1 for you!

Reduce That Carbon Footprint

With the world finally shifting towards a more plastic-free way of life, more and more of us are becoming aware of our carbon footprint.

Although you could argue that more technology in the home has a greater impact on the environment, due to an increased electricity output, automation—as long as it is actually used—can contribute to a reduction in a property’s impact on the environment and make it more energy efficient.

An obvious feature of this would be motion detection for lighting, which can be set for x amount of time. If there’s no movement, the lights go off. How many times have you woken up in the night to find lights on in your house? Such a waste of money and a needless impact on the environment, making smart lighting a wise investment.

This can be a thing of the past with the installation of a home automation feature and adds a level of value to your property, with the benefit being a reduction in future running costs for a buyer.

Something to Think About

Ring Floodlight

Please don’t expect that every automation feature you install is going to increase your property’s value and appeal. Unfortunately, it’s not that simple. It is, however, a viable option.

The key takeaway, really, is to do your research and consult a real estate broker; one that you trust, not just a “yes man” that just wants your business.

Think about the current generation and what future generations are likely to need and want. With the likes of Google and Amazon advancing access to home technology, and opening the doors to AR and VR, smart home features could become more of the norm. So, like anything, it could be more valuable to you to invest in your home’s automation before it becomes more common-place in the market.

Last update on 2021-09-21 at 00:10 / Affiliate links / Images from Amazon Product Advertising API

Leave a Comment