Wireless sensor networks have received increased interest in different applications, including smart homes. One of the most important aspects of these networks is the energy consumption, which plays a crucial role in the usefulness of the implementations. In this paper, a new method for decreasing energy consumption is introduced. The method, called Location Based Latency Control (LBLC), will take advantage of the location information of the user in a smart home environment in order to optimize the energy-latency tradeoff present in many networks. The new method is tested by simulation based on power consumption measurements and location data gathered from a living test in actual smart home environment. The results show that using location information as a means of controlling the network parameters provides a useful and promising method in decreasing network energy consumption without sacrificing usability of the connected devices.