Why a Real Estate Startup in Denver Should Upgrade Its Property?
Real estate startup in Denver? To call it a lose-lose game is an understatement.
An article on Forbes magazine–with the title “The Most Competitive Housing Markets In The U.S. Going Into 2019”– rate Denver as the most rigorous place to run a real estate business since the average amount of the downpayment in parentheses in Denver is 16 percent (highest in the US)
That and the fact that 90 percent of startup fail within the first year are more than enough to prove my point.
However, the more experienced ones have their advantage, and startups got their upper hands as well. One of those is the flexibility to integrate new technology into your work. And in terms of a housing agent, upgrading your real estate with smart devices would be favorable.
According to FOX 31 news Denver, “New market research shows 60 percent of homeowners want the latest high-tech features built into their new house” and RSI–Colorado’s Leading Provider of Home Technology “64% of realtors say home buyers are more interested in high-tech amenities compared to just a few years ago. Smart homes sell faster than others, and with the number of smart homes on the rise it’s important to ensure your home can compete in the market.”
It’s no doubt that the market for Smart real estate in Colorado is thriving. Therefore, as a real estate startup in Denver, you should put this into account. And I know what you are thinking. Would installing smart devices into my real estate property increase my income?
To answer this question, as an entrepreneur you should consult someone with years of work in the field. Someone like Angel Piontek–a residential real-estate agent with 15 years of experience and the vice-president of marketing for Coldwell Banker Elite– points out: “I think it’s really on a case-by-case basis. It depends on what you have installed.” It’s easy to understand, a house built in with a $12,000 whole-house automated system Control4 would undoubtedly be more expensive than a similar one with a $1,000 system.
However, merely installing all of the modern devices you could think of is far from enough. It’s also about what the buyer’s interests are.
Here is a report conducted by McKinsey Company about the reference of customers toward segments of smart devices.
So a real estate startup in Denver sound very attractive, but every market has only one plot. It’s to satisfy your customer and reduce cost to increase profit.
In terms of those criteria, which devices should you install? Which brands? And what steps should you take?
Which Smart Moves Should You Take to Startup in Denver?
Step 1: Secure the Property inside and Out
It’s clear from the graph about what startups should do first. The primary function of a house is to keep you safe and smart devices bring that onto a whole new level.
Smart smoke detector
“Almost two-thirds of home fire deaths resulted from fires in properties that lacked a functioning smoke alarm”- Denver’s Department of Safety.
The number was devastating. Now, the odd has been more favorable since the appearance of smart smoke detector.
A Smart smoke detector is a carbon monoxide detection connected to a smart hub (we will discuss this later), which will give out an alarm if there is smoke or fire heat detected. 2018 Coldwell Smart Home Marketplace Survey stated that 75 percent of homebuyers are in favor of pre-installed smart smoke detectors.
Top 3 rated products:
Nest Protect Smoke and CO Alarm
First Alert Smoke Detector, Photoelectric and Ionized Alarm
Kidde i12040 120V AC Wire
Remember the time when you have to fumble in the freezing cold weather trying to find your key?
Never again! With a smart door lock, your house can recognize your cell phone location and automatically unlock the door as you arrive at the porch either through Wifi or Bluetooth. And that is not all You can also customize the identification system to allow only specific people to enter such as family members or friends.
Top 3 rated products:
August Smart Lock HomeKit Enabled
August Smart Lock Pro + Connect
Smart security camera
“Owners can get some peace of mind knowing their home is secure at all times. All by using an app on the phone. This peace of mind is priceless to a homeowner,” Rudy Cortes, real estate investor and co-founder of Property Coin offering Crypto for investors talked about smart security cameras.
Six days (March 24th-29th, 2019), there has been more than 30 reported burglary cases happening in Denver.
From all the reasons above, I firmly believe that the house you are about to sell in Denver would be much more valuable if it is equipped with smart security cameras. The ability to supervise the driveway, the back gate, the front porch, your windows–any part of your property– from anywhere and anytime, even while you’re away is too appealing for your clients to say no to that.
Top 3 rated products:
Netgear Arlo Pro 2
Nest Cam IQ Outdoor
Logi Circle 2 (Wireless version)
Step 2: Optimize Utility Management
Although Denver’s weather is mild for the most months, it could reach some extreme amplitude in the middle of the years–especially July and August–when it can be as hot as 99°F and as cold as 57°F in the same day (July 4th, 2018).
Moreover, researches show that almost 50% of wasted energy in Denver, Colorado comes from heating and cooling activities.
Therefore, to overcome this, your customers would want to find a new and more efficient way to modify their houses temperature. And that is where startup should pay attention to. Smart thermostats are equipped with the ability to measure the air condition accurately and sense whether you are at home or away to adjust its work accordingly.
Top 3 rated products:
Nest Learning Thermostat (3rd Generation)
Lux/Geo Wi-Fi Thermostat
Do you know that lighting usually takes up 12 percent of monthly electric bills? You might find that reasonable, but every little bit adds up and smart technology can help you make a “brighter” choice. Smart lighting preserves up to 75 percent more energy by heat wave sensing function which could automatically turn on, dim or turn off whenever not in use. Furthermore, they can be customized to carry out some certain activities such as adjust the level of brightness depending on periods of a day or turn off when you leave the house.
Best rated product:
Other smart utility management
A smart sprinkler is used for areas that have dry weather and require decent attention to your lawn. These devices will be programmed via computer or smartphone app, automatically adjust your sprinkler system to take into account for the seasons and weather conditions. According to the Koppen climate types, Denver has a fairly complex climate kind so you should pay attention to this and invest smartly to startup in Denver successfully.
Smarter Solar Panels is not about how to improve resources management but about how to create them. The unique features of a smart solar panel are the smart junction boxes, which give you the tools to control panel performance and switch off individual panels or an entire array in case of an emergency, such as a fire or tornado.
Interesting fact for real estate agents: Department of Energy has found that installing solar panels can increase a house resale value by $15,000.
Step 3: Increase Living Value with Smart Appliances, Health, and Entertainment
Today, smart health lies in the building blocks of a smart home. Traditional nine-to-five health care is more like a cure, not a prevention method, but only smart health gadgets such as smart watches and activity trackers are not currently suitable to monitor severe or hidden symptoms.
The integration of smart health and smart home would create another highly intelligent way to protect people health. The concept is easy to understand. Just imagine a house where your shower or bathtub can run a quick, non-invasive health check, and your bed can collect information about your weight, heart rate, and breath by sensors to detect any signs of illness. Those data are then forwarded to your health assistance and provides alerts to ensure your health is not compromised.
However, that is the dream of becoming a reality, but the current truth is that you are a startup. Knowing about it could be beneficial for the future; for example, you can offer a more high-end real estate for the affluent market. Offer this kind of product at the beginning of your career is not worth the risk. Furthermore, with the limited financial power, your startup simply cannot compete with the Smart city of Denver, known as the CityNow.
Smart appliance–on the other hand– is a safer way to make your investment. Under here is a report about the market penetration of Smart appliances and entertainment given by interpreting research conducted by McKinsey Company.
Step 4: Connect Everything with Smart Hub
To increase your real estate value, don’t just throw in smart devices and call it efficiency. If every device has its own control system, that would be even more troublesome than comfortable. So now you need to connect every smart appliance into one hub which can manage thermostats, appliances, lighting, music, and more, as well as the activity on any connected device.
Startup in Denver is a big gamble. It is a huge profit for huge adversity. However, the application of high technology would increase the winning odd for you. Contact us to discover the infinitive potential of technology.