Smart Home Disclosures – The Big Disconnect

TO DISCLOSE - the act of making something known, especially where the item would not have been readily discoverable.?

This is especially relevant concerning Smart Home systems that are embedded in the home's infrastructure and not visually accessible. In real estate, sellers have an affirmative duty to disclose all material facts concerning the condition of their residence and items that would have an impact on the value of the property.?This is straightforward and a well-accepted standard of practice in the real estate industry.

But here is the big disconnect.?Real estate practices evolve at a snail’s pace and fail to keep up with rapidly changing technology, especially where Smart Homes are having an increasing impact on how we live. Many people are reluctantly accepting the concept that a car is essentially a computer on wheels.?A few thought leaders in real estate and artificial intelligence are recognizing that homes are evolving into computers on a foundation. Yet our real estate standards of practice are many decades behind the new Smart Home technologies currently available to homeowners.

It makes sense that this disconnect is being felt in my marketplace in Northern California, where Silicon Valley gives birth to many of the Smart Home technologies. Sophisticated buyers are asking questions such as:?

• How does the infrastructure of the home affect its wireless capabilities??
• When can we anticipate fiber optic in the neighborhood??
• How secure is the home’s wireless system and Internet of Things from cyber intrusion??

These are not your average questions concerning the age of the roof or questions about proper drainage on the property.

Today, I am challenging the big disconnect and bringing you a 21st century disclosure protocol.

After two years of study, collaboration, and hard work, I am pleased to introduce the?Smart Home Disclosure Statement. We are using it as an addition to the normal disclosure package common in today’s real estate package. This 3-page disclosure addresses current Smart Home technology and adds great value to you and your Seller’s presentation.

Many current sellers will have ready access to the information required in the disclosure. For those sellers that feel unqualified to answer the disclosure questions, there is a section referring to a Smart Home Automation Expert who will complete the Disclosure form on behalf of the owners.?

As Smart Home technologies progress, we can anticipate Buyers requesting a full Seller disclosure of related Smart Home issues. Many sophisticated agents are using the Smart Home Disclosure Statement as a part of their full disclosure package available to buyers.

So a few questions for you:?

What is your current definition of a Smart Home? (See the Smart Home Primer)

Is your definition focused on gadgets, or rather a thoughtful process that families can use to assess their Smart Home needs?

Next time we will be addressing Smart Homes - Healthy Homes. The importance of indoor air quality.?

See you soon -??Be Smart,?Be Safe, Be Well….

Ben Heinrich?| [email protected]

831-915-7415 | www.theheinrichteam.com