When to Trust the AI

We live in a world of constantly evolving technology, and the democratizing of data. However, despite our tendency to trust what an algorithm spits out, there are times when we should trust a human over algorithmic data from online products like Zestimate by Zillow.

By no fault of the company, products like Zestimate cannot take into account features like ‘look and feel’, quality of construction, and nearby commercial or residential developments that might change the valuation. Zillow as do many services, officially state that these AI based services are not an official appraisal.

That is not to under value the key information given! After all an estimate is better than no estimate at all! Even real estate agents themselves look towards AI generated information to get a baseline.

Here are some key questions to ask when using an AI generated valuation:

  • What are some nearby buildings and features that will affect value?

  • What are the ages of the utilities, what kind of repairs will this house need and when?

  • Are there any natural features like a lake or a mountain?

  • What are the materials the house is made from?

  • What is the kitchen like, the bathroom?

Keep in mind some features that you know would make a difference in the house that you would purchase.

As always feel free to contact me with any questions!