People have begun using AI for everything. So, it’s no surprise that homeowners have begun using it to determine their homes’ value. We are here to say: Don’t use AI to determine your house value. PLEASE. We beg of you!
How would AI know your house value?
We have already told you all the reasons why Zillow can’t even determine your home’s worth. So, how would AI know if one of the largest real estate websites in the world can’t accurately give you a true home value?
AI is scraping information from other websites and regurgitating it back to you. If it manages to give you a potential sales price for your home, I can almost guarantee it looked at Zillow, Redfin, and Realtor.com.
What AI doesn’t know
Property condition, roof age, and how location can change everything in New Orleans!
Those of us living in New Orleans know that many dividing lines for neighborhoods are certain streets. These parameters matter and can change a home’s value significantly.
Does your house have lots of deferred maintenance? Does your home have tons of incredible upgrades? AI doesn’t know this. Which means they also don’t know if the houses that sell around you have these items either.
An experiment
Even though I try to never use any of these tools, because I really feel like we will lose the ability to think for ourselves if we use it for everything. I DIGRESS… I used ChatGPT to ask about the value of my parents’ home. Immediately, I knew the square footage wasn’t accurate. That was issue number one.
It offered to create a broker-level CMA (comparative market analysis) for me based on the most recent sold, pending, and active comparables. Again, I go back to: how does it know the other homes’ conditions, amenities, etc if it doesn’t even know yours?!
It even claimed to be more accurate than Zillow and Realtor.com, even though it began the synopsis of the value by citing these websites!
/RANT
I found myself incredibly annoyed and frustrated by this because, as an actual Realtor, I know that pricing a home is not a science. Sometimes it’s a gut feeling.
We don’t price your house based on price per square foot – and neither should any other agent. We don’t price your home based on what your neighbor sold for 5 years ago either.
Interview agents, talk about pricing, get an appraisal, literally do anything but use AI to value your home!
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