How Smart Home Technology Is Changing Real Estate Closings
As smart home technology becomes more mainstream, it’s changing the way we live – and the way we close real estate transactions.
From Wi-Fi enabled thermostats and irrigation systems to app-controlled pool heaters and garage doors, more homes than ever are equipped with Smart technology. Apps, short for applications, are software programs installed on your smartphone or through a website that can control different items inside or outside the property; these programs can perform tasks remotely. When it comes to real estate transactions, these connected devices are often overlooked, leading to confusion and frustration for both Buyers and Sellers.
REALTORS must expand their closing checklists to include Smart Home essentials – and let Buyers and Sellers know what to expect.
Real-Life Lesson: Why Smart Home Disclosures Matter at Closing
I had my first Smart home closing recently while representing a Buyer. The Seller, and their listing agent who was related to the Seller, did not inform us that the pool pump was controlled by an app that requires Wi-Fi. Since the Buyer was not moving in immediately, they did not plan to set-up Wi-Fi until a later date.
The day after closing, they met with the person who serviced the pool who explained what was required (an app & Wi-Fi) to operate the pool pump remotely. The Buyer messaged me in a panic, and of course it was right before a long holiday weekend, and I requested information from the Seller’s REALTOR. I obtained some details from the Seller’s side and passed it along to the Buyer.
The following week, the Buyer had to get Wi-Fi equipment and connectivity established for the property and learn how to use the pool pump app. This required several hour-long trips to the new house to complete the steps. This was a very good learning experience and the impetus for this article.
For Sellers: Protect Your Data Privacy
If you’re selling a home with smart features, here’s what you should do before closing:
Create a Smart Device Inventory
Make a list of all Smart Home devices that will remain with the property, such as:
- Smart thermostats (e.g. Nest, Honeywell, Ecobee)
- Pool or spa controllers
- Irrigation systems
- Smart light switches or Smart light bulbs
- Doorbell cameras (e.g. Ring)
- Security systems
- Electronic keypad door locks
- Garage door opener systems or Exterior garage keypad
- Other Smart timer devices
Transfer Access and Credentials
Reset devices to factory settings and prepare to transfer access:
- Unlink your personal account from all devices
- Leave instructions on how to reconnect the device with the new owner’s credentials
- Provide app names and instructions
Provide Wi-Fi Details
Some devices need to reconnect to a home Wi-Fi network after being reset.
- Provide the name of the Wi-Fi network (SSID)
- Suggested locations of routers/extenders for optimal coverage
- A note explaining where to update the settings (within apps or control panels)
A Seller will protect their own data privacy and make the transition seamless.
For Buyers: Ask the Right Questions About Smart Tech
Smart homes are only smart if you know how to use them. Here’s what you should clarify before closing:
Request a List of Connected Devices
Make sure you know which devices stay with the home and which ones the seller is taking.
Ask About App Access
Find out:
- Which apps you need to download
- Whether there are service subscriptions required
- If the Seller has reset the devices and removed their accounts
- If any Contact information is available for Technical Support
Get Setup Instructions
The listing agent should ensure the Seller leaves behind basic instructions or links to online manuals. If not, ask for a Tutorial during the final walkthrough.
Confirm Wi-Fi Setup
If Smart devices require Wi-Fi for operation, ask if any included wireless network equipment supports sufficient strength throughout the property. Are additional boosters, extenders or mesh networks needed?
For REALTORS: Update Your Smart Home Closing Checklists
The days of just handing over keys and garage remotes are over. These days, the Buyer might not get any physical items at closing.
Today’s closings may also include:
- Login instructions for pool automation apps
- QR codes to download irrigation controllers
- Smart home disclosures (not just warranties)
- Notes on where Smart hubs or routers are installed
- Factory reset procedures or tech support contacts
Adding a Smart Home Transition Section to your Buyer and Seller checklists helps ensure a smoother handoff and happier customers!
Get Smart – Close the Smart Way
Smart homes are here to stay. As they become more complex, so do the expectations of modern buyers. By taking a few extra steps to document and communicate Smart Home information, Sellers can boost Buyer confidence. REALTORS can position themselves as modern, tech-savvy professionals who go the extra mile.
Smart closings aren’t just about saving time, they are about protecting value and creating a better experience for everyone involved.
