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If you’re thinking about selling your home this year, you’ve probably checked its value using familiar tools on one of the most common real estate websites. These sites promise quick estimates based on data and algorithms, and they’re getting better every year using the AI tools. But the big question is: can you really trust AI to price your most valuable asset accurately?
Before you list your home with an AI price estimate, please consider this:
One of my clients in the Phoenix metro area was ready to sell their four-bedroom home and decided to use an AI tool for a pricing estimate. AI pulled data from recent sales nearby, adjusted for square footage, and looked at market trends. It estimated their home’s value at $620,000.
However, the pricing tool missed some key features: there was a $70,000 kitchen renovation with high-end appliances done within the past six months, a full smart-home upgrade, and a prime location on a quiet cul-de-sac with greenbelt views. None of these factors were reflected in the AI estimate.
After I walked through the property and analyzed local buyer demand and the desirability of the location, we listed the home at $685,000 and received an offer within days. That’s a $65,000 difference between the AI estimate and the actual value we were able to obtain by looking at the past comps and the current competition in a difficult buyer’s market and the specific desirability of the home features.
Let’s consider what these tools do well, where they fall short, and how to ensure your pricing strategy helps you avoid losing out on thousands.
What AI does well in home valuation. AI tools have come a long way. They pull in a good deal of data from public records, MLS sales, and even tax info to give you a quick estimate of your home’s value.
If you’re in a planned area neighborhood where the floorplans are more predictable, like many of our subdivision where the homes have a similar vibe, these tools can be fairly accurate. They’re awesome for getting a ballpark figure without picking up the phone to call your agent. The good thing, too, is these tools are always “learning,” tweaking their numbers based on information like interest rates and market trends. It’s fast, it’s easy, and it’s a good starting point.
Where AI misses the mark. Despite the strengths, AI tools have notable blind spots. These tools can’t physically tour your home to assess unique upgrades, like a new $40,000 home theater or breathtaking golf course views. They can’t smell, touch, or see your actual home.
It is also a struggle for AI tools when we are in a market with diverse or limited sales data, like you might find in older neighborhoods, custom builds, or in a county island. In fast-changing markets, AI often lags, relying on past sales rather than current buyer behavior. A 2025 survey of real estate pros found that 87% think AI undervalues homes with unique features or upgrades, which could mean fewer buyers or lowball offers for sellers.
AI valuations can influence buyer expectations. AI-driven estimates don’t just affect sellers; they affect homebuyers, too. If one of these real estate sites says your home’s value is less than your asking price, buyers may assume your home is overpriced, even if your price is spot-on. This kind of buyer expectation can lead to fewer showings, lower offers, or unnecessary negotiations.
Setting more clear expectations through strategic pricing and marketing is essential to counteract these effects and keep your sales on track.
Why real estate agents bring value to our clients. AI’s only as good as the data it has, and that data isn’t always up to speed. There could be a new positive development down the road that you are aware of or a large community project boosting employment and opportunity near your neighborhood that will bring greater appeal or there may be a nice “feel” in a neighborhood that draws in the buyers, even though there may not be a direct explanation for it. AI might not know about any of these things, but a local and experienced agent will. I am seeing what is selling, what is sitting on the market (and in most cases, why it is sitting), and what buyers are discussing. The real-time, boots-on-the-ground insight gives us real estate agents the human expertise that no algorithm is able to match.
What’s the best strategy to get your home’s true value? Simply put, I would recommend using both AI, so you have a ballpark expectation, and asking for home pricing insight from a real estate expert. Having an experienced real estate agent help you with your pricing will be one of your best decisions if you want an accurate valuation of your home. AI is a great starting point, and I use it one way or another in my business just about daily, but we don’t want to rely on this one pricing tool. Top agents combine data-driven tools with real-time experience, feedback, and local knowledge.
AI does help us understand market trends and strategies, which can help drive offers, but getting the asking price right isn’t just about numbers….it’s also about understanding what makes your home stand out in today difficult market.
If you’re planning to sell this year, I would love to add my experience and knowledge to the pricing tools you may have already used. I will always offer my CANE Client care, where I will Communicate, Advocate, Navigate, and Educate in every market we are in because you deserve 5-star, uncompromised service for all your real estate needs
