Author: Chad Curry, Managing Director, CRTLabs, National Association of REALTORS®
When we talk about upgrades to homes, we typically think of the world of physical additions: a remodeled kitchen or new countertops, things you can shape and build into the home to add value and make it more marketable. Today, though, we are starting to see upgrades that come in smaller, but more powerful packages. Thermostats, video cameras, doorbells, and lighting systems, to name a few, are amenities that can add value to the home and help improve the homeowner’s quality of life. This is made possible because of something called the Internet of Things.
The term “Internet of Things,” or IoT, was coined in 1999 to describe everyday objects that are connected to the internet for the purposes of monitoring and controlling them and gathering data on their usage.
By the year 2020, it’s estimated that there will be between 26 and 50 billion IoT devices connected. To provide some perspective, there are nearly 4 billion smartphones connected today. So, we’re looking at six to sixty times the current number of devices connected to the web, made possible by commoditized and smaller hardware. IoT encompasses classes of devices like wearables (think Apple Watch or Fitbit), as well as smart home and smart city sensors. IoT promises a better understanding of how we live, and the ability to control our lives around us with ease and adjust our habits based on this feedback.
Cities all over the world are working on programs that allow us to have a better understanding of our city and how it’s performing in real time. In Chicago, a program called the Array of Things will allow the city and its citizens to understand the air quality, temperature and humidity, noise level and many other metrics on a street by street basis, through open data. This data will be extremely valuable in both residential and commercial settings and is one of the largest efforts in the world to build a platform that improves our understanding of how we live.
The Smart Home
The smart home is a home that reacts to your wants and needs. This can be characterized by systems that learn behavior or can be programmatically controlled via an application — for example, a Nest thermostat can be controlled with an app. It also learns your behavior, thus allowing for the system to become autonomous. This system can work with other smart devices through a program called Works with Nest.
This is only one example. Another is the Amazon Echo, a voice controlled device that can search the web and connect to the internet. Amazon has opened up development on their platform to whomever cares to build applications for it. So, companies can make their smart home devices work with the Echo. This means that you can then use your voice to change temperature or control the lights.
According to a recent survey by Coldwell Banker and CNET:
This is a new and emerging field that is sometimes hard for consumers to understand. If you sell a home with a smart thermostat in it, you need to know how to reset the thermostat so that the previous occupant no longer has access to it. Here at the Center for REALTOR® Technology (CRT Labs), we worked with the Online Trust Alliance to create a smart home checklist. This checklist allows you to educate consumers on what devices need to be reset, what passwords need to be changed, and how to go about doing so. But that’s not the only educational resource available from us. We also have a smart home glossary and Internet of Things Frequently Asked Questions page where you can learn more about what these devices mean for homeowners.
One example of a smart video camera is a company called Canary. This particular camera offers great HD quality video, temperature and humidity sensor, and air quality sensor. Canary claims to stop up to 5 burglaries a week because of their camera. The app itself has a built-in 90 decibel siren and emergency call button.
Another smart camera is the Netatmo Welcome. This camera has facial recognition built into it and stores your video on a MicroSD card that is encrypted. You can also store your video feed in Dropbox if you so choose, or on a local FTP server.
The great thing about both of these cameras is that they don’t look like security cameras. They actually look more like Bluetooth speakers. Both the Canary and the Netamo Welcome cost $199. To me, this is a very inexpensive way to generate leads.
What is the Internet of Things?
The term “Internet of Things,” or IoT, was coined in 1999 to describe everyday objects that are connected to the internet for the purposes of monitoring and controlling them and gathering data on their usage.
By the year 2020, it’s estimated that there will be between 26 and 50 billion IoT devices connected. To provide some perspective, there are nearly 4 billion smartphones connected today. So, we’re looking at six to sixty times the current number of devices connected to the web, made possible by commoditized and smaller hardware. IoT encompasses classes of devices like wearables (think Apple Watch or Fitbit), as well as smart home and smart city sensors. IoT promises a better understanding of how we live, and the ability to control our lives around us with ease and adjust our habits based on this feedback.
Cities all over the world are working on programs that allow us to have a better understanding of our city and how it’s performing in real time. In Chicago, a program called the Array of Things will allow the city and its citizens to understand the air quality, temperature and humidity, noise level and many other metrics on a street by street basis, through open data. This data will be extremely valuable in both residential and commercial settings and is one of the largest efforts in the world to build a platform that improves our understanding of how we live.
The Smart Home
The smart home is a home that reacts to your wants and needs. This can be characterized by systems that learn behavior or can be programmatically controlled via an application — for example, a Nest thermostat can be controlled with an app. It also learns your behavior, thus allowing for the system to become autonomous. This system can work with other smart devices through a program called Works with Nest.
This is only one example. Another is the Amazon Echo, a voice controlled device that can search the web and connect to the internet. Amazon has opened up development on their platform to whomever cares to build applications for it. So, companies can make their smart home devices work with the Echo. This means that you can then use your voice to change temperature or control the lights.
Why does any of this matter to real estate?
According to a recent survey by Coldwell Banker and CNET:
- Nearly 45 percent of homeowners either own or will own Smart Home Technology by the end of 2016.
- 54 percent of homeowners would purchase Smart Home Technology if it meant their homes would sell faster.
- Nearly 65 percent of those people would spend up to $1,500 on Smart Home Technology.
This is a new and emerging field that is sometimes hard for consumers to understand. If you sell a home with a smart thermostat in it, you need to know how to reset the thermostat so that the previous occupant no longer has access to it. Here at the Center for REALTOR® Technology (CRT Labs), we worked with the Online Trust Alliance to create a smart home checklist. This checklist allows you to educate consumers on what devices need to be reset, what passwords need to be changed, and how to go about doing so. But that’s not the only educational resource available from us. We also have a smart home glossary and Internet of Things Frequently Asked Questions page where you can learn more about what these devices mean for homeowners.
Devices That Matter
When it comes to the smart home, there are many devices that could make a great closing gift. Cameras and thermostats are two classes of devices that prove very beneficial to the homeowner and help you build a relationship outside the transaction.Smart Video Cameras
One example of a smart video camera is a company called Canary. This particular camera offers great HD quality video, temperature and humidity sensor, and air quality sensor. Canary claims to stop up to 5 burglaries a week because of their camera. The app itself has a built-in 90 decibel siren and emergency call button.
Another smart camera is the Netatmo Welcome. This camera has facial recognition built into it and stores your video on a MicroSD card that is encrypted. You can also store your video feed in Dropbox if you so choose, or on a local FTP server.
The great thing about both of these cameras is that they don’t look like security cameras. They actually look more like Bluetooth speakers. Both the Canary and the Netamo Welcome cost $199. To me, this is a very inexpensive way to generate leads.
Thermostats
As previously mentioned, both Nest and Ecobee have thermostats that are part of an energy savings program from ComEd. Smart thermostats can help you save up to 10 to 15 percent in energy costs, report to you when there are issues with your HVAC system, and help you control your home from the outside. They can also help you monitor who’s using the HVAC system and how much they’re using it. They give you a sense of monthly, as well as yearly, costs and range in price from anywhere from $199 to $249.
Educate yourself
IoT is an ever-changing field, but that’s not slowing consumer demand. The more you know about the smart home space, the better you can serve your clients. There are a couple of ways that you can learn more about these devices. A website called SmartHomeDB contains numerous devices that are on the market, as well as ratings from users and methods for installing. Another resource specifically geared towards real estate is our site, crtlabs.org. We talk a lot about real estate-specific issues with these devices. Our services are free, and you can always reach out to ask questions or request special advice on products. We are here to help you!Keep an Eye On: The Array of Things
Imagine if a light pole told you to watch out for an icy patch of sidewalk, or an app mapped out the best route home based on air quality. It’s not out of the realm of possibility, thanks to the Array of Things. The Array of Things (AoT) is a Fitbit for the city – a lamppost-mounted civic fitness tracker that collects data about Chicago’s health and activity. All the data is immediately available through a simple interface, as well as stored for ongoing study. Through AoT, researchers, policymakers, developers and residents can work together and take specific, data-backed actions to make Chicago a healthier, more efficient and livable city. Data collected will be open, free and available to the public, allowing anyone access to create apps and projects of their own. Find out more, at arrayofthings.github.io