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If you’re thinking about selling your home this year, you’ve probably checked its value using tools like Zillow or Redfin. These apps promise quick estimates based on data and algorithms, and they’re getting better every year. But here’s the big question: can you really trust AI to price your most valuable asset accurately?
Before you list your home with an AI price estimate, you need to hear this:
I recently had a client who called me back to look at their home. When I arrived, I found out they had put nearly $350,000 into improvements since buying it. None of those online tools had a clue about that. We priced it much higher than what the websites suggested, the home sold quickly, and we even set a new record for the street.
The problem with AI instant valuations. Ask any experienced Realtor about instant valuations, and they’ll admit it drives us nuts. Most times, the number is way too high, which sets up unrealistic expectations for sellers. Other times, it’s too low, and people risk losing more money.
AI can’t evaluate the things that really affect value. Two homes on the same lot size can be totally different if one has a steep slope and the other has a flat backyard. It can’t see the difference between brand-new systems and ones that are about to fail. Even if two homes look identical, the one on a busy road will always be worth less than the one tucked in a quiet cul-de-sac.
It also struggles with areas that mix home types. In a short distance, you might have older homes, luxury estates, and rural properties with equestrian facilities. Trying to lump all of that together and spit out a single “value” is never going to be accurate. It’s also worth noting that AI always looks backward at past sales, while Realtors are out there watching the market shift in real time.
The risks of relying on AI alone. The biggest problem I see is when sellers use those inflated AI numbers to set their listing price. When they do, the home sits and goes stale. As a result, sellers have to cut the price. Buyers notice that and often assume something must be wrong with the property. In the end, those homes usually sell for less than if they had just been priced correctly in the first place.
What AI actually does well. To be fair, AI has strengths. It can process mountains of data like tax records, MLS info, and crime stats much faster than any person could. If you’re looking at a neighborhood full of nearly identical homes, the numbers can be pretty accurate. But that’s really just the starting point.
Why Realtors still matter. This is where local expertise becomes irreplaceable. Realtors know how to pick the right comps, recognize the adjustments that matter, and understand the nuances of what’s happening street by street. That’s something an algorithm can’t do, no matter how much data it crunches.
So, if you’re thinking about selling your home in 2025, don’t leave it up to an algorithm. I use AI to help crunch the numbers, but my experience is what makes sure your home is priced right and marketed to sell. If you want to talk more about buying or selling, don’t hesitate to send me a message at [email protected]. I’d love to connect.
