NOTE: At this year’s REALTOR® Legislative Meetings, I was talking about our work with Andrew Sims, CEO of Dayton Area Board of REALTORS®. I shared with him things we talk to REALTORS® about in our presentations, and at one point, he said, ‘That should be written down somewhere.’ I realized immediately he was right. So, I’ll start by doing that in this post.
When we speak at associations and brokerages, our standard presentation includes a lot of information about why REALTORS® should care about smart homes. The biggest reason is because other industries that touch the housing market are getting involved. Utilities and insurance companies are creating rebates and programs around smart home technology. Smart home devices will allow you to do things like:
- monitor and save energy
- keep your home secure
- prevent extensive damage to your property
Knowing what is available and who is offering it is a great information for you and your clients. We will include links to more information in this article.
I realized immediately smart devices would mean big things for how consumers use energy when I first saw the Nest Thermostat in 2012. These devices help consumers save 10-15% in energy costs. As I traveled and spoke, however, members weren’t too keen on its $249 price tag at that time. But around 2014, REALTORS® began sharing stories of rebates from utilities and energy savings for their clients. They were even sharing stories of how the thermostats were paying for themselves in a short amount of time. These programs have only grown.
ComEd, Chicago’s largest electric utility, is offering $100 rebates on certain smart thermostats. They’ve even extended rebates (amounts vary) toward the purchases of light bulbs, power strips and security cameras, and has a site dedicated to selling smart home devices with instant rebates included. Check with your local electric and gas companies to see what rebates they may be offering on these devices.
In the insurance industry, smart home devices are being offered as ways to reduce premiums and risk. Specific smart device types that can be up for discounts are:
- Water leak detectors
- Smoke/CO alarms
One such insurer is Liberty Mutual, an NAR REALTOR Benefits® partner. They are giving away a Nest Protect smoke and CO detector and up to 5% off of insurance premiums. You can find all the life safety and security products included in Liberty Mutual’s program by searching the Liberty Mutual site.
Another insurance company with an interesting offering is State Farm. They are working with camera company Canary to provide discounts on burglar alarm insurance.
Educate Yourself So You Can Educate Clients
These are just a few examples of smart home promotions you can find outside our industry and share with your clients. Companies like Nest and Ecobee have rebates and rewards websites you can use to check and see what’s offered in your area. This is very fertile ground and there are a lot of opportunities for you to connect with your clients by educating them on these discounts and programs. Search your local area for opportunities for clients and make sure they know what’s out there.
TLCengine is a company specializing in the “True Lifestyle Cost” of home buying. Beyond just mortgage, taxes, and insurance, TLCengine looks at over two dozen cost variables associated with owning a home. These factors include average utilities, commuting costs, car insurance rates, and more. Using predictive analytics, TLCengine can give buyers a highly accurate breakdown of how much house they can afford. The traditional way of looking at homeownership costs (the mortgage, taxes, and insurance mentioned earlier) only account for 50% of the costs associated with living in a home – and TLCengine accounts for this in their predictive modeling.
TLCengine was one of this year’s hackathon sponsors, and their data was instrumental in helping our teams who were looking at machine learning/artificial intelligence to help consumers and agents make better home buying decisions. This type of data is uniquely suited for helping clients make smart decisions with their money, beyond just the initial purchase of a home, and we thank them for letting our hackathon participants use their API this year, and wish them luck in launching TRUE, their new product for agents and brokers, this year!
The Touchstone sensor from CRT Labs. This device will read temperature, humidity, light, CO2, VOCs, particulate matter and more.
- What are 10 key things that make a city smart? (via ReadWrite)
This is a great roundup of what a city needs to be smart. From connectivity to sensing, ReadWrite put together a great roundup. If you’re interested in the real estate perspective on smart cities, we’ve got a series for you to check out called ‘The Building of Functioning Cities‘.
- And finally: Amazon Echo 2 incoming and more (via Wareable)
Yes, this is a list of smart home/wearable items for you to peruse. They have some good intel on Amazon’s latest smart speaker as well as what Apple’s up to on the smart home front. Check it out.
- What to know about smart home technology: 10 smart home resources for REALTORS (via CRT Labs)
Another roundup??? What’s going on with this list? 🙂 I would be remiss if I didn’t point you to our roundup of resources you can take advantage of to bolster your understanding of this emerging market. Why does it matter to you? Because it matters to your clients. Read on to find out more.
- Microsoft’s Cortana-powered thermostat is totally gorgeous (via CNET)
This is definitely something to consider. A nice-looking thermostat from Microsoft and Johnson Controls. No pricing info yet, but keep an eye on this. It’s called the GLAS, it’s voice-enabled (with Cortana, Microsoft’s answer to Siri and Alexa) and it monitors indoor and outdoor air quality. If you want a voice-enabled thermostat now, check out the Ecobee4 with Alexa integration. If the $249 price point is keeping you away, you should look for rebates from your utility or insurance company.
- Touchstone: Environmental Quality Monitor for your home! (via CRT Labs)
Finally, a look at what we’ve been up to. This device is not on the market yet, but take a look at our work. Really proud of our group here at NAR. Akram, one of our lab engineers, provides a pretty deep dive into what we’ve been up to with this device. I’m really proud of our team and their efforts to make this piece of hardware and the software behind it. They’ve been extremely supportive of one another and have collaborated better than I could have imagined. Kudos to them.
That’s all for Things Thursday this week. Have questions? Want us to cover something? Let us know. You can follow us on Twitter @crtlabs or Facebook
Smart home technology is definitely here to stay. According to a recent report on consumer adoption of smart home technology, 79% said they own some type of smart home tech. Those that owned it said they would purchase more. Ninety-seven percent of consumers now know what smart devices are. This is up from 67% in 2015. Because of market awareness, there are several opportunities for you to discuss these devices with your clients. They may:
- have interest in adding value to a home before selling it
- be wondering if they should leave devices with the home
- want to outfit their new home with devices
- be curious about simply learning more
As more and more of these devices hit the market, consumers will ask you about the benefits and their needs. Below, we’ve compiled a list of resources for you to use to educate yourself and your clients on smart home technology.
Here are 10 resources that you can use in improving your understanding of smart home technology:
1. Smart Home Glossary and Smart Home/Internet of Things FAQ
The glossary and FAQ are good places to start. They give you all the terms that relate to smart home devices. From how these devices connect to what IoT is. It’s a compendium of the most asked questions we’ve received with respect to these devices. Help clients get ahead of the curve by sharing the links with them.
2. The Insecurity of Things: Understanding Security Issues Around the Internet of Things
Last fall, when the denial of service attack happened and most of the internet wouldn’t work, I wrote a 3-part series on the security issues around the internet of things. I looked at what you as a user of these devices can do to protect yourself as well as what manufacturers need to do to protect you. Security is paramount for these devices and this series gives some insights on what to do to make sure you understand the risks and how to mitigate them.
3. Smart Home Simplified 1-Pagers
Our Smart Home Simplified series of 1-pagers is meant to give you a high level overview of the different device classes in the smart home space. These 1-pagers are great tools for educating yourself, other agents, or consumers. You are able to share them with whomever you’d like. Add a link in your newsletter or other informational posts. Each sheet talks about the pros and cons of these devices, how they work and why consumers are interested in them. The 10 classes of devices we cover are:
- Indoor Air Quality Sensors
- Voice Activated Speakers
- Water Leak Detectors
- Smoke/CO Detectors
Each page will also provide you with a link to a resources page for that class of devices. Think we need to add another class of devices? Let us know.
4. CRT’s Smart Home Report
Last year, we did our first smart home report with our Research Group at NAR. This will be an ongoing annual report for the next few years. We are working to better understand your knowledge of the space and that of the consumer market. Use it to understand what devices are important to consumers and where there are opportunities to help support clients in their quest to understand this market.
5. Educate Yourself & Consumers on Incentives from Utilities & Insurance Companies
I recently wrote a piece on the value of understanding what rebates and incentives are being offered by your utilities and insurance companies. These incentives may or may not be known by your clients, but knowing about what is available in your area is of tremendous value to them. It also shows that you’re looking out for ways to improve their experience.
6. CRT Labs’ Things Thursday
On a semi-regular basis, we put together a round-up on the internet of things and talk about the implications for real estate. We look at the way in the future tech as well as stuff that you can take advantage of today. It’s a great list of links you can share with your team, other agents or clients.
7. CRT Labs’ Office Hours Every Friday
Our Facebook page is a great place to find resources. Every Friday, we hold Office Hours on emerging technology. They start at 3p Eastern and run for about 20 minutes. We love receiving questions and comments during the Office Hours so we can discuss with you and have active conversation on these topics. Like the page and be notified immediately of any live videos we are doing.
8. Smart Home Checklist App
Have you sold a home that had smart home devices in it already? If so, did you have those devices reset by the seller before transferring ownership? If not, the seller may still have access to the smart devices. To help with this problem, we created a web app called the Smart Home Checklist. This simple app will allow you to identify the devices in the home, aggregate them on a list and share that list with whomever you want.
9. Smart Home DB
The Smart Home DB is a great resource to find out more about specific devices. They have nearly 1,200 devices listed in this community-curated database. They also have user-generated plans for hooking up different devices and some how-tos. We are actually feeding the backend of our Smart Home Checklist from this repository.
10. IoT Podcast from Stacey Higginbotham
Stacey is an IoT industry expert and she has a great podcast on the topic of smart homes, smart cities and industrial IoT. She has vendors and industry experts talk about the market now and what’s coming.She’s even covered CRT’s work in the past on her podcast. Stacey’s expertise comes from years of covering technology for a number of news sites, including Fortune and GigaOm. Sign up for her newsletter and find out what’s coming next.
BONUS: This blog & CRT Labs
You might have noticed a lot of the resources I posted linked back to this blog. There’s a reason for that. CRT is one of the few resources thinking about the impact of emerging technology on your business. We talk to members about it, as well as speaking to industry experts, vendors, security groups, universities, government and research laboratories about you and your business. They see you as a valuable resource and are very interested in your feedback and work. So, use us as a resource. We do webinars, presentations and all sorts of educational outreach. Drop us a line if you’d like us to present to your group.
That’s it for this roundup. Are there any resources you’d like from us that aren’t listed above? Follow us on Twitter and Facebook and let us know.