Smart Home: Definition, Benefits And The Best Smart Home Devices

Remember the TV sitcoms of yesteryear where robots were maids and you could cue your coffee machine to make espresso with a simple voice command? In our modern age, those futuristic appliances and tech-infused homes aren't a far cry from reality. 

Smart homes are here to stay. By the end of 2023, the number of smart home systems installed had reached a total of 279.4 million and is positioned to grow.

Putting in a smart home device – whether it's smart lights, smart lighting, or a state-of-the-art security camera – can enhance your day-to-day convenience and boost its home value. Research estimates that installing certain types of smart home technologies can increase the value of your home 3% – 5%.

What exactly makes a house a smart home? Here, we'll go through the ins and outs of top smart home devices, how they work, and some products that might be a good fit for your home.

What Is A Smart Home?

A smart home has internet-enabled appliances and devices that can be controlled anywhere using a connected device, like your smartphone. For example, you can control garage doors, doorbells, and energy-efficient thermostats through the internet.

Smart home devices are becoming more common. In 2020, 36% of homes had installed at least one home device; by 2025, that percentage is predicted to increase to 57%. 

The advantages of a smart home include safety and convenience. As a homeowner, you can ensure your home's security and efficiency from the comfort of your phone, tablet, or smartwatch.

How Do Smart Homes Work?

Smart home systems contain devices and appliances connected to a central hub, which can be a tablet, smartphone, laptop or smartwatch. These smart home devices can be controlled remotely anywhere through home automation, as long as there's an internet connection.

Smart home technology requires the following to operate:

• Smart hub: This is the operation's brain or "central hub" where everything is controlled.
• Control application: This is the program on your device that controls your smart home devices.
• Smart device: A smart device is any appliance or home system with automation and an internet connection that you control within the smart hub or on your phone or tablet.

Common Smart Home Features

Smart home systems can make your house more energy-efficient, boost security and enhance everyday comfort and convenience.

Smart Lighting

Wouldn't it be great to control your lights from anywhere? No more getting out of bed or driving home just because you left the lights on. Using your smartphone app, you can control smart light bulbs from anywhere, anytime. 

You can set lighting on a schedule or manually turn it on and off from your app. Some smart lights even have voice control functionality, which allows you to turn them on and off just by telling them to do so. No more worrying about full arms when entering a dark room.

Smart Thermostats

Boost your home's energy-efficiency with a smart thermostat. It can program itself based on your household habits. You can also control it from your smart device to ensure you aren't using your HVAC system unnecessarily.

Case in point: Smart thermostats can lower the heat during slumber hours or increase the temperature when nobody is home during summer months. That way, energy is conserved.

Smart Speakers

Smart speakers are a great addition to your home if you are an audiophile or love to play surround sound on the TV. You can play music on demand, adjust the volume, and change the playlist by vocal commands or using your app.

Smart Home Appliances

Smart home appliances could mean never feeling uneasy about leaving the coffee pot on again. A smart refrigerator could make meal-planning, list-making and grocery-list writing a cinch. You can control your smart oven from your phone and not fret about burning dinner. 

While they have the largest learning curve and may feel a bit indulgent, smart appliances can make life easier and less stressful.

Smart Home Security Systems

As you might imagine, home security is one of the most important parts of smart homes. You can add smart security cameras, smart locks or devices to monitor your home around the clock and receive instant alerts should something look fishy. 

Along the same lines, smart home detectors can detect body heat, infrared energy and motion. They might also be able to tell the difference between humans and animals. Be aware that many security systems have a monthly monitoring fee.

Digital Assistants

Add a digital assistant or smart speaker such as Alexa to your home and say your commands out loud whenever you need help. For example, if you say "Alexa, turn on the lights," or "Alexa, play my favorite song," you won't have to walk across the house or manually press any buttons on the device.

Smart Plugs

When you add a smart power adapter, you have more control over the flow of electricity. It can help you save energy and potentially track your energy usage.

Advantages Of Smart Homes

Are you curious if a smart home is worth it? Some of the pluses of a smart home include convenience, boosted efficiency, and even money saved. 

• Convenience: By being informed about your home's activities and able to control many devices, you can save time and effort.
• Peace of mind: Installing a smart home security system can give you peace of mind. You can be alerted when a stranger is at the door, there's a break-in, or there's a porch theft.
• Safety: Smart home devices – think smart locks or garage door openers—give you added security. They can eliminate shared garage codes or the need to give out keys to your home.
• Saves money: Installing energy-efficient smart devices can lower your utility bill. For example, a thermostat programmed to automatically shut things down to conserve energy can greatly decrease your utility bills.
• Higher home value: Installing smart devices can boost your home value. According to data from the National Association of REALTORS®, smart homes are often worth more than comparable homes without smart devices. Plus, buyers are willing to pay more for smart homes, even if other areas of the home are outdated.

Before purchasing a slew of smart home devices and appliances, do a cost-benefit analysis to see the true value of upgrading to a smart home. Plus, factor in an enhanced quality of life. That way, you can feel confident your initial investment makes sense.

Disadvantages Of Smart Homes

As with any changes made in the home, you'll want to weigh the potential minuses to smart homes, including the initial costs, learning curves and the impact of internet outages.

• Upfront cost: The exact initial investment hinges on the number and types of smart home devices you install. While a thermostat or Google Home device might be inexpensive, an appliance overhaul or complete home systems can be a large financial undertaking.
• Risk of being hacked: Unfortunately, any system that's connected to the internet runs the risk of getting hacked. In turn, it's important to have strong home Wi-Fi security to ward off hackers.
• Learning curve: More sophisticated or complex devices have a steeper learning curve than others. In addition, the devices need time to gather data and get to know your household's habits and behaviors.
• Compatibility issues: You might purchase smart home devices that don't sync up to one another, which can cause incompatibility issues.
• Internet outages: If your home internet goes kaput for a stint of time, it means devices connected to the smart hub won't be able to work properly. Create a plan to handle your systems during an internet outage.

How Much Do Smart Homes Cost?

The initial cost of integrating smart technology into your home varies by device, brand and location. According to HomeAdvisor, the average cost to make a house a smart home is $906, but it can vary between $206 and $1666 and may go up to $3,000.

That said, as smart home devices become more common, there will be greater demand and, in turn, more manufacturers. The increased competition can lower prices.

As an example, home security smart systems like the Vivint Home Security Premium package are more expensive. They can cost $2,400 and upward, plus a monthly system monitoring fee. The GE Profile Smart Refrigerator has a hefty price tag of $4,200.

That's not to say you'll need to spend a lot of money on smart devices. You can scoop up a Google Nest thermostat for under $130 or a Ring doorbell for under $170. Plus, rebates might be available.

Popular Smart Home Devices And Costs

The market for smart home devices is growing every day, but here are some of the top options. 

• Amazon Echo: This smart speaker and digital assistant can spew out facts so you don’t need to Google them yourself, provide ingredients for a recipe, and control the smart devices in your home. The Amazon Echo ranges from $40 to $150, with no ongoing monthly fee.
• Ring Video Doorbell: The Ring Video Doorbell makes it easy to catch a glimpse of who’s at the door and speak to them through the camera's microphone. Ring doorbells start at $49.99 and go up to $349.99, plus the annual monitoring fee.
• Ecobee Smart Thermostat: The ecobee Smart Thermostat can help you save up to 26% on your heating and cooling bills by sensing your household's habits and automatically setting indoor temperatures or allowing you to set controls from your phone or smartwatch. The price tag is anywhere from $149.99 to $249.99.
• Kasa Smart Wi-Fi Plug: The Kasa Smart Wi-Fi plug or power strip lets you control the device from anywhere with an internet connection. They range from $19.99 to $100.
• Wyze Bulb Color: The Wyze smart light bulb brings a wide lumen range and 16 million colors to your home. With a simple set up, control and voice activation, they can be used for sleep routines or when you're on vacation. They go for $22.99 for two. 

Funding Your Smart Home

If you want to automate devices in your home, you might consider financing options, like a home equity loan or a home equity line of credit. This can make upgrading to a smart home more affordable, which means enjoying the convenience and security without draining your wallet.

Both forms of financing feature lower minimum credit requirements and less stringent financial requirements. However, as you're borrowing against the equity in your home, should you fall behind in your payments, you risk losing your home.

Are Smart Homes Energy-Efficient?

While smart power strips, smart bulbs and smart thermostats can curb your energy use, smart speakers and cameras can drive up your household energy use.

Smart homes can help you save on energy and costs in several ways. Smart thermostats can make adjustments based on your household preferences and habits to conserve energy. Plus, they can help you monitor your usage and make adjustments as needed. Smart plugs allow you to shut off devices and appliances when not in use and schedule times to turn on and off devices in your home, even when you are out.

On the flip side, smart devices like speakers and cameras can increase household energy use and, in turn, drive up your utility bill. That said, the trade-off is other benefits, such as security, home monitoring and peace of mind.

The Bottom Line

A smart home can be a sound way to boost your home's security, comfort, and convenience. Plus, it can increase your home's value, even if other parts of it are outdated. If you're on the fence, start smart and invest in a few lower-cost devices with a shallow learning curve.

Once you get the hang of it – and are enjoying smart home benefits – you might want to go for a larger investment. If you want to upgrade your home to a smart home or purchase a home with smart home features, start your online mortgage approval today.