Bracing for Next Generation Technology in the home

Introduction

Technological advancements have influenced the underlying mechanisms of most industries. It has rendered traditional functions as obsolete by introducing innovation solutions that can aid in increasing productivity and maximizing profits. While the smartphone sector and automobile market are expected to capitalize on these technological improvements, the real-estate industry has unexpectedly benefited as well.

The buzz generated from Silicon Valley indicates that the next generation of technology launched will propel the real-estate industry into new heights. The conceptual idea of these technologies has already been released publically, although some physical utilization aspects have yet to be fulfilled. Nonetheless, should these technological advancements reach their desired potential, it will definitely propel the real-estate industry into a new era.

New Technology

Generally referred to as Smart home technology, the primary objective of these systems is to increase user experience by creating a friendly interface centralized around convenience and functionality. Through careful implementation of these innovations, homeowners not only get to enjoy its immediate benefits but also inadvertently increases the value of their property. As these gadgets are gradually introduced to homeowners, significant changes are expected to take place that will alter the fundamentals of the real estate industry.

• Added Functionality

From remotely controlling the thermostat to a bed that analyzes sleep pattern, each of these devices or applications increases the functionality of the residential property. Potential homeowners used to be overly concerned with the facilities and amenities that each property can offer, this might all change when Smart home technologies are widely implemented.

These technologically advanced functions can also serve as a reference point for potential homeowners. Potential buyers who are concerned with saving the environment would look for homes that are equipped with an extensive array of applications that can help to save energy and minimize waste. Tech-savvy buyers might be more interested in futuristic homes whereby every appliance is connected to a centralized control device such as a smartphone, offering full control to homeowners regardless of their physical location.

Lastly, parents of young children or pet owners will definitely be attracted by homes that are fitted with round-the-clock video surveillance, giving them full access to the situation at home without being physically present. These video devices are often installed with a two-way communication system, allowing parties on both ends to keep in touch with each other as well.

These few examples highlight the vast potential that is waiting for smart home technologies to exploit. While homeowners are given the liberty to indulge in personal preference and install their preferred devices or applications, they should bear in mind that these decisions are similar to deciding on permanent fixtures in the house, all with serious repercussions that can either increase or decrease the value of the property.

• Premium Pricing

For existing homeowners who manage to create their own centralized Smart home technology and fully utilize them to its full potential, their properties will naturally command a premium pricing in the real estate industry. In a way, these homes are now equipped with state-of-the-art technology that propels it as one of the best properties available in the market.

Nonetheless, interested homeowners should not get too carried away and start fixing their own Smart home technology. Commanding a premium price for their properties is a long-term strategy that does not naturally yields a profit. In fact, each of these technologies can be rather costly. Any misguided purchase along the way would significantly increase the costs involved. After a few careless mistakes, the potential for profit based on premium pricing simply evaporates under the pressure of high set up costs. The high price tag of these technologies is also a barrier that is stalling consumer demand.

• Interoperability

Having explained the potential of these technologies, it is only understandable that manufacturers are coming out with new products on a daily basis to gain a head start in the industry. With the demand for smart home technology is still in its infancy stages, the supply for these products far exceeds the market equilibrium.

This presents an additional problem for potential buyers. After having to search and filter through the endless range of products, they have to consider the interoperability aspect of each product. A much-dreaded situation occurs when a homeowner completely upgrades his humble abode only to discover that all the devices are not interoperable. Instead of creating a convenient and comfortable environment, the home descends into chaos as these new installations will most likely have to be removed.

• Valued Security

According to an international online study consisting of 7,000 participants, one of the main benefits of smart home technologies that users get to appreciate is the increased security and control. Approximately 4,000 participants listed this as a unique advantage that warrants the installation of these products. However, a separate survey in 2015 yielded different results. Only 37% of home occupants with existing Smart home technologies felt adequately protected.

The contradiction in both studies serves as a stark reminder that there are always two sides to a coin when it comes to technological security features. One of the main pitfalls is the potential risk of hackers releasing virtual viruses or bugs that can effectively render these security features useless, literally opening the door for burglars to enter the property and have their pick of the goods. Until the public can be totally convinced of its prowess at increasing security, the concept of Smart home technologies will never be truly embraced.

Conclusion

The concept of smart home technologies definitely paints a bright future for the real estate industry. As consumer expectations increase with each invention, manufacturers are tasked with the responsibility of guaranteeing the effectiveness of their products. Potential customers are still awaiting convincing solutions to outstanding issues such as security flaws and pricing concerns. Nonetheless, it is highly expected that smart home technologies will be installed in a majority of the residential properties in the near future.