If you’re thinking about selling your home this year, you’ve probably checked its value using tools like Zillow or Redfin. These apps promise quick estimates based on data and algorithms, and they’re getting better every year. But here’s the big question: can you really trust AI to price your most valuable asset accurately?
Here’s an example of where that goes wrong.
I recently worked with a client just outside of town who was getting ready to sell a four-bedroom home in a competitive market. They started with an AI tool for a price estimate. It pulled recent sales nearby, adjusted for square footage and factored in market trends. It came back at $620,000.
What it missed: a $70,000 kitchen renovation with high-end appliances, a full smart-home upgrade, and a quiet cul-de-sac lot with greenbelt views. None of that showed up in the estimate.
After I walked through the house and looked at local buyer demand, we listed it at $685,000 and had multiple offers within days. That put our asking price $65,000 above the AI estimate, and the buyer response told us the AI number was too low.
Here’s what these tools do well, where they fall short, and how to price your home so you don’t leave money on the table.
What does AI get right? AI tools have improved a lot by 2025. They pull in data from public records, MLS sales, and even tax info to give you a quick estimate of your home’s value.
If you live in a subdivision where the homes are similar in size, age and condition, these tools can get reasonably close. They’re handy for a quick ballpark number before you talk with an agent. They also keep adjusting their numbers as interest rates and market trends change, which makes them a decent place to start.
Where does AI get it wrong? AI tools can’t walk through your house, so they miss upgrades a buyer would pay for, like a $40,000 basement home theater or a mountain view.
They also struggle where sales data is thin or all over the place, like older neighborhoods, custom builds or rural areas. When the market is moving fast, AI often lags, relying on past sales instead of what buyers are doing today. A 2025 survey of real estate pros found that 87% think AI undervalues homes with unique features or upgrades. For you, that can mean fewer buyers or lowball offers.
Why does the AI number matter to buyers? Buyers check these estimates too. If an online estimate shows your home worth less than your asking price, buyers may assume you’re overpriced even when your price is right. That can mean fewer showings, lower offers and more back-and-forth than you need.
The fix is pricing the home carefully and marketing it so buyers can see why it’s worth what you’re asking.
Why does a local agent still matter? AI only knows what’s in its data, and the data runs behind. A new development down the road or a community project that makes your neighborhood more appealing may not show up yet, but a local agent will know about it. We see what’s selling, what’s sitting, and what buyers are talking about at open houses. An algorithm doesn’t have that.
What’s the best strategy to get your home’s true value? Simply put, just use both AI and ask for help from a local expert. Having a local real estate agent help you with your pricing will be one of your best decisions if you want to get more for your home. AI is a great starting point, but it shouldn’t be your only pricing tool. Top agents combine data-driven tools with real-time feedback and local knowledge.
We use AI for broad trends and our own experience for the details that drive offers. What makes your home stand out today matters as much as the comps.
If you’re planning to sell this year, call or email me before you settle on a price. I’ll compare the AI estimate with local sales, your home’s condition and current buyer demand so you can price it with a clear head.
Chris Watters
Watters International Realty
512-567-1597
