A smart home is a residence equipped with technology that allows homeowners to remotely control and automate various systems, such as lighting, heating, security, and appliances. These devices are typically connected via the internet and can be managed through smartphones, voice assistants (like Alexa, Google Assistant, or Siri), or centralized control hubs.
Smart-home technology plays an increasingly important role in home valuation by enhancing convenience, security, and energy efficiency. A smart home is more important than ever in 2025 because of advancements in technology, increasing energy costs, security concerns, and the growing demand for convenience.
In today’s real estate market, smart-home technology is no longer just a luxury—it’s an investment that can significantly increase home value. Buyers are increasingly looking for tech-enhanced homes that offer convenience, security, and energy efficiency. If you’re considering upgrading your home, here are the smart-home features that provide the highest return on investment (ROI) and make your property more attractive to potential buyers.
Top Features with the Best ROI
1. Smart Thermostats (High ROI: 10-12%)
Smart thermostats, such as Nest and Ecobee, optimize heating and cooling based on user habits and occupancy. These devices help reduce energy costs, making them a top-valued feature for buyers looking to cut down on utility bills. Many homebuyers prioritize energy efficiency, which can result in a higher selling price for your home.
2. Smart Security Systems (High ROI: 8-10%)
A secure home is a major selling point. Video doorbells (Ring, Arlo) and smart locks (August, Schlage) provide an extra layer of protection that appeals to safety-conscious buyers. A home equipped with a smart security system is often viewed as more desirable, potentially increasing its market value.
3. Smart Lighting (ROI: 7-9%)
Wi-Fi or Bluetooth-enabled LED smart bulbs (Philips Hue, LIFX) allow homeowners to control lighting remotely and automate schedules. Smart lighting not only enhances convenience but also contributes to energy savings. Motion-sensing outdoor lighting adds curb appeal and security, making it an attractive feature for potential buyers.
4. Smart Appliances (ROI: 5-8%)
While not essential, high-tech refrigerators, ovens, and washers with remote monitoring and energy-efficient settings add convenience and a modern touch to homes. These upgrades can make a difference in luxury home markets where buyers expect the latest technology.
5. Smart Irrigation Systems (ROI: 6-9%)
Smart irrigation systems like Rachio or RainMachine help conserve water and reduce maintenance costs. These systems are particularly valuable in regions with high water costs or drought concerns, making them a great selling point for environmentally-conscious buyers.
6. Whole-Home Automation Systems (ROI: 5-10%)
For luxury properties, whole-home automation systems (Control4, Crestron, Savant) that integrate multiple smart features, such as lighting, security, and entertainment, provide a seamless living experience. These systems can justify a higher asking price and set a property apart in competitive markets.
7. Smart Blinds & Shades (ROI: 5-7%)
Automated window coverings (Lutron, Somfy) improve energy efficiency by adjusting based on sunlight and temperature. They add both convenience and a sleek aesthetic, making them a valuable addition to high-end properties.
8. Smart Smoke & Carbon Monoxide Detectors (ROI: 5-7%)
Safety features like Google Nest Protect enhance security and may even lower homeowner insurance costs. These upgrades are a simple, cost-effective way to increase a home’s value and appeal to cautious buyers.
Final Thoughts:
The best ROI comes from smart-home features that save money, enhance security, or improve daily convenience. While luxury smart-home systems can be appealing, fundamental upgrades like a smart thermostat, security system, and lighting provide the best return on investment.