The Future of Home Buying

The process of buying and selling homes has not changed significantly in a very long time; not since the invention of the Internet in the mid 1990’s. By now, we are all very well-versed in how the Internet aids the real estate market, but before that consumers were much more limited in how they could take ownership of buying and selling homes, relying on local advertisements and making bookings to physically see properties.

The Internet put a lot more information in the hands of consumers and real estate agents began to more equally represent buyers and not just sellers. Twenty years later, the Internet is evolving again. A new Internet of Things (IoT) has taken shape.

How will it shape how we look at buying and selling homes?

The Internet of Things

The IoT was first mentioned by Kevin Ashton, director of the Auto-ID Center at MIT, in 1999 in a presentation he made to Procter & Gamble. The basic concept of IoT is that technology will be integrated directly into the products we use and that we will rely on computers less. Ashton stated:

“If we had computers that knew everything there was to know about things - using data they gathered without any help from us - we would be able to track and count everything and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling and whether they were fresh or past their best.”

This system is expected to usher in a new age of connectivity between many devices at all levels of life. For example:

  • Heart monitoring implants
  • Biochip transponders on farm animals
  • Electric clams in coastal waters or automobiles with built-in sensors among many others.

It will mean your home appliances will be able to report data to the Internet without any human intervention. We will then know better the answers to questions like:

  • How efficient is my heater?
  • How clean is the air in my home?
  • Are the windows letting in too much air or is my home sealed too tight?
  • Does my hot water heater need replacing?

How Will This Affect Real Estate?

We will be seeing more of this in the months and years to come. Smart homes are not just a thing of the future or a commodity for billionaires. The technology is being developed at a fast rate.

It will affect how buyers make decisions on homes as new information becomes available. Soon, buyers will be able to answer questions like this about potential homes before they decide to purchase or even view a home. Sellers will be able to market their homes in ever more creative ways and keep up to date on all their homes’ health and safety features.  

You can be a part of regulatory efforts for this new technology as the U.S. Department of Commerce brings together interest groups to ensure it develops with your security in mind. The National Association of Realtors is already part of the discussion.

Bringing it Home

Smart houses and the Internet of Things continue to transform our daily lives. A new era is being ushered in on how homeowners buy and sell their homes. If you would like to learn more, please give our office a call.