In this paper, we propose a home energy management system that employs load shifting strategy of demand side management to optimize the energy consumption patterns of a smart home. It aims to manage the load demand in an efficient way to minimize electricity cost and peak to average ratio while maintaining user comfort through coordination among home appliances. In order to meet the load demand of electricity consumers, we schedule the load in day-ahead and real-time basis. We propose a fitness criterion for proposed hybrid technique, which helps in balancing the load during ON-peak and OFF-peak hours. Moreover, for realtime rescheduling, we present the concept of coordination among home appliances. This helps the scheduler to optimally decide the ON/OFF status of appliances in order to reduce the waiting time of appliance. For this purpose, we formulate our real-time rescheduling problem as knapsack problem and solve it through dynamic programming. This paper also evaluates the behavior of the proposed technique for three pricing schemes including: time of use, real-time pricing, and critical peak pricing. Simulation results illustrate the significance of the proposed optimization technique with 95% confidence interval.