In many nations, limited power from providers and an increase in demand for electricity have created new opportunities that can be used by home energy management systems (HEMSs) systems to enforce proper use of energy. This paper presents a virtual intelligent home with demand response (DR) model home appliances that have an inverter air conditioner, water pump, washing machine, and inverter refrigerator. A binary backtracking search algorithm (BBSA) is proposed to introduce the optimal schedule controller. With the proposed BBSA schedule controller, the highest energy consumption during DR can be reduced by 33.84% during the weekends and by 30.4% daily during the weekdays. The results indicate the effectiveness of the proposed HEMS. Additionally, the model can control the appliances and maintain total residential energy consumption below the defined demand limit.