In today’s world of convenience and tech-driven tools, artificial intelligence seems to be everywhere – from your phone to your fridge and, now, your finances. But did you know that a primitive form of AI has been quietly influencing real estate decisions for decades – and often not in a good way?
I’m talking about those online home valuation tools. You know the ones: You type in an address and, within seconds, a “value” pops up as if delivered from on high. These values are spit out by computer algorithms based on raw data, but here’s the catch – they’ve never set foot inside the house.
The algorithm doesn’t know if your home has been updated or still clings to the avocado-green tile of the 1970s. It doesn’t know if the property includes coveted lake rights or sits on a dirt road that turns into a mudslide every spring. It can’t measure how sound carries through the canyon or whether parking is a dream or a daily nightmare. Yet people often treat these computer-generated numbers as gospel.
What’s baffling is how often I see buyers and sellers dismiss the insights of a local real estate agent – someone who has actually walked through the house, driven the neighborhood and studied the nuances of the local market – in favor of a number generated by an unseen algorithm that may be off by tens or even hundreds of thousands of dollars.
The result? Buyers who think they’re getting a deal when they’re not, and sellers who overprice based on faulty data. And, almost always, the first words I hear after someone tours a home are: “But this online site says it’s worth X.” As if the agent standing right there, the one who’s tracked every comp and trend in the area, doesn’t know better.
It’s true that data is important. We all like information. But AI’s greatest strength – its ability to crunch large volumes of standardized data – is also its greatest weakness when it comes to our unique mountain communities. These tools were designed for uniform neighborhoods where every third house is a copy of the next. In custom, rural or mountain settings, they’re simply not built to handle the variables.
As homeownership becomes increasingly challenging due to rising prices, interest rates and insurance costs, relying on local expertise is more important than ever. Your real estate agent isn’t just a tour guide – they’re a strategist, a negotiator and your first line of defense against misinformation.
So sure, check the number online. But before you treat it like the final word, talk to the person who actually knows the story behind the front door.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social: Instagram, @theresagrantrealtor | YouTube: @theresagrantrealtor. Theresa is a Broker Associate with REAL Broker Technologies.
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