Can Upgrading to a Smart Home Increase Its Value?
SOURCE: Realtor.com
During the CES 2025 in Las Vegas, several new gadgets for making your home a “smart” one debuted to an abundance of fanfare. In fact, upgrading appliances to “AI” models was a dominant topic during the conference. Several brands showcased new models featuring the emerging technology, including electronics powerhouses Samsung and Hisense.
Samsung Electronics presented its “Home AI vision,” which is “offering a comprehensive look at how AI is shaping modern living,” according to a press release.
Meanwhile, Hisense unveiled “groundbreaking advancements in display technology with the new TriChroma LED TV and stunning 136-inch MicroLED Display and smart living solutions,” according to their press release.
But the technology introduced goes far beyond computers and phones. Would you like to talk to your washing machine? How about your refrigerator? And would upgrading to a smart home make it an attractive buy when and if you decided to sell?
The short answer? Yes, bring on the Jetsons era!
Your appliances will all have AI in the future
Smart home gadgets and appliances were among the biggest trends at this year's CES conference. As Mashable puts it, “You can't escape the smart house. Samsung wants AI in everything: your fridge, laundry, oven, and even the vacuum cleaner.”
The brand showcased a slew of AI-improved devices, including ovens, refrigerators, washer/dryer combos, vacuums, and HVAC systems, according to Mashable. However, the outlet noted that these fun new contraptions will come “at a cost.”
For instance, Nathan Richardson, founder of CashForHome.com, shares that the upcoming LG AI-controlled television model was a buzzy item at the show.
He explains that the features include AI-powered recommendations with voice recognition, an AI chatbot, and AI search, along with the LG AI Concierge, which tracks your preferences and search history to give you contextually relevant insights that relate to what appears on your display.
And the price for having this ultrasmart TV? The LG OLED televisions cost between $1,399 and a whopping $59,999. (Those heftiest price tags are for the big, big screens, though!)
Another buzzy item was the TP-Link Tapo DL100 Smart Wi-Fi Door Lock, which includes six ways to unlock the door: “by fingerprint, keypad, Tapo app on a smartphone, Bluetooth, Smart Assistant, or with included backup keys,” according to USA Today. The gadget will cost you $129.99 on Amazon.
The new-age homebuyer and what they are looking for
Nationally, 1.6% of homes listed in 2024 boasted 'smart home' in their listing description, 0.6 percentage points higher in 2024 compared to 2021, explains Hannah Jones, Realtor.com® senior economic research analyst.
“Newly constructed homes are more likely to have updated appliances and technology, which could be the source of climbing 'smart home' share,” says Jones.
Yet, while AI features are becoming more sought after, several experts say that in 2025, new-age buyers will be looking for both smart features and energy-efficient ones.
According to Richardson, this year, buyers will favor fully equipped or furnished properties that prioritize convenience, energy conservation, and future-based technology.
“Homebuyers will be captivated by houses with AI-supported security cameras, smart thermostats, and high-quality equipment appliances rather than just their architectural attractiveness,” he says, noting that these buyers will also want to make sure they have sustainable features like solar panels for electricity saving, EV charging stations, and intelligent illumination on their list.
Do high-tech appliances increase a home's value?
High-tech and AI appliances for a smart home can come with a hefty price tag. Depending on the size of the house, the complexity of the installations, and several other factors, “on average, homeowners can expect to pay $2,000 to $4,000 for basic home automation,” according to Today’s Homeowner. But of course, the sky’s the limit, and buyers can end up paying hundreds of thousands of dollars for all the bells and whistles.
These upgrades can add value to a home during a sale, especially in areas where tech-savvy buyers are looking for the latest gadgets. But there is a catch.
“The return on investment for these high-ticket items is not as guaranteed as more traditional home improvements like kitchen renovations,” says Kwame Darko, founder of KD Buys Houses.
He adds, however, that these gadgets can make a home stand out, shorten the selling process, and potentially command a higher price, especially in markets where innovation and efficiency are prized.
Can you potentially make your money back on these high-ticket upgrades?
Although recouping your investment in these pricey upgrades might not be guaranteed, they can “help a home sell faster, at a higher price,” according to the National Association of Realtors (NAR).
NAR adds that these improvements can increase a “property’s resale value by up to 5%.”
What if you want to take the appliances with you?
But let's say you've fallen in love with your space-age fridge or your smart dishwasher, and you don't want to part with your AI appliances. The choice to take them with you is yours, but you should know what you're in for if you do.
As Richardson points out, while you can technically move these, removing them may affect the salability of your home.
For instance, smart ovens and integrated refrigerators are considered part of the house itself and, as such, moving them will discourage potential buyers or require their replacement before selling, he explains.
“Smarter appliances, on the other hand, such as smart washing machines or televisions, do not affect a home's attractiveness; thus, one can carry them when moving out without any concern,” he adds.
Richardson also underscores the importance of specifying in the purchase contract which items will be left behind and which ones you'll be taking along during closing, to avoid ambiguity during this process.
SOURCE: Realtor.com