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AI tools are emerging as a new way to estimate home values
HousingWire says future valuation models may need to combine public market data with homeowner provided property details to improve accuracy and transparency.
HousingWire says consumers are starting to shift from automated valuation models, such as Zestimate, toward artificial intelligence tools for home value estimates and decision support. Instead of only requesting a number, users are increasingly asking AI systems for guidance on whether to accept an offer and whether they may be overpaying.
The article argues that traditional AVMs have a core limitation, they rely on historical sales data, public records, market trends, and comparable properties, but they do not actually know the home. It points to examples where two properties can look similar in public data but differ materially after updates like renovations, new roofs, or pools.
HousingWire adds that the next generation of home valuation technology will likely need to close the gap between public information and on the ground reality by incorporating more property specific details. It also highlights concerns around how AI valuations can be made unbiased, objective, and transparent, like a professional appraisal.
The piece cites a CNBC appearance by luxury real estate broker Ryan Serhant, saying he nearly lost a $50 million deal after ChatGPT suggested the seller’s home was worth more while telling the buyer they were paying too much. The article frames the broader question as whether AI tools have enough information to produce valuations homeowners can trust.