LINDSEY HARN December 3, 2025
AI-written value estimates for homes is all the buzz for consumers, writes contributor Lindsey Harn, but these values may be a bummer without expert agent oversight.
Just how valuable is that AI-automated home value? Not very says agent and contributor Lindsey Harn as she explains that human expertise outshines AI estimates every time.
Real estate deals are inherently emotional for clients. A buyer might walk into a home and start imagining their life there, forming a real attachment. All it takes is a single number, like an AI-generated Zestimate or Redfin valuation, to change how they see the property.
AI-generated home value estimates can contain numerous errors, lack nuance and even cause problems for all parties involved without even stepping into the home first. Let’s break down the pitfalls of AI home value estimates and how agents can help educate consumers about the actual value of what they are reading online.
What’s it worth?
AI’s impact on home values affects real estate agents almost as much as buyers and sellers. A property might feel underpriced or overvalued, which can lead buyers to hesitate, skip extra inspections or even reconsider making an offer.
Clients often go down the “Zillow rabbit hole” to find their own comps, but those comps are often 2+ years old and very out of touch with the current market. When a client is misinformed on any step of the process, they stop trusting the agent they’re working with and get confused.
These AI-powered home estimates often do more harm than good, even though they are promoted as innovative and practical. Rather than simplifying transactions, they can create misunderstandings, foster distrust and add unnecessary friction between buyers, sellers and the experts assisting them.
Out of date
Inaccurate or out-of-date inputs are frequently used in Zillow and Redfin values, and exclude important factors like recent renovations, custom features and evolving neighborhood trends. But many consumers still interpret these numbers as fact, not knowing better. When a listing price doesn’t align, buyers immediately question whether they’re over- or underpaying, while sellers start to wonder if their property is valued correctly. What begins as a small discrepancy quickly snowballs into a lack of trust for everyone involved.
Crashing into reality
For agents, AI estimates are more than just an annoyance; they stand in the way of establishing and preserving trust. Instead of focusing on strategy and negotiations, agents are forced to re-educate clients about why the computer-generated price is incorrect.
This defensive stance can diminish the agent’s power. Clients may choose the algorithm because it seems objective when years of experience and market knowledge are suddenly compared to it.
These figures can even cost agents deals before they start in competitive markets since buyers may leave thinking they’re “protecting themselves” when, in reality, they’re depending on insufficient information.
Why human expertise matters
Pricing a home isn’t just about math; it also involves nuance, strategy and context. The level of renovations, neighborhood momentum, school district desirability and even the property’s intangible appeal that makes buyers willing to pay more, are all variables that an experienced real estate agent considers, which an algorithm cannot.
Real estate is a people-driven industry. Negotiations, timing and local knowledge matter just as much as square footage and comparable sales. The understanding and flexibility gained from years of interacting with buyers and sellers in markets cannot be replicated by any algorithm, despite what they might believe from the internet.
3 turn it around tips for agents
AI estimates aren’t going away, but real estate agents can get ahead of the issue by reframing how clients see them. A few strategies include:
1. Address estimates upfront: Agents should explain that automated valuations often rely on outdated or incomplete data. Factors like recent renovations, micro-market trends or buyer demand in a specific neighborhood rarely make it into the algorithm, creating gaps between digital estimates and real market value.
2. Show side-by-side comparisons: Presenting actual comps next to AI-generated figures helps clients see where and why the numbers diverge. It reinforces the agent’s market expertise and grounds pricing discussions in verified sales data rather than assumptions.
3. Turn estimates into teaching moments: When clients mention online values, agents can use that curiosity to explain how pricing really works, where supply, timing, condition and negotiation strategy all play roles that algorithms can’t capture. This shifts the conversation from defending a number to demonstrating real expertise.
Take control
By taking control and educating early, agents can reset expectations and position themselves as the honest authority on the market.
Clarity is what buyers and sellers want, not a figure that doesn’t reflect a property’s actual worth. That’s why real estate professionals need to address these estimates head-on, reframe the conversation and demonstrate the nuance that only human expertise can provide.
At the end of the day, pricing a home involves strategy, context and trust. And that’s something no algorithm can replace.
Article originally published by Inman.