AI can estimate a home. An appraisal can inform the decision.

A recent HousingWire opinion piece identified a growing shift in consumer behavior: Homeowners are no longer relying only on familiar online estimates from platforms such as Zillow and Redfin when curious about what their property is worth. They are also turning to generative artificial intelligence for value estimates and transaction advice.Automated valuation models and AI tools can analyze large datasets, recognize patterns and provide estimates almost instantly. But the key question is not whether an algorithm can estimate property value. It is which valuation service fits the decision being made.AI is only as effective as the prompts and information it receives. Does the typical user understand the difference between fair market value and market value? Does the user know to identify a specific historical date for a bankruptcy appraisal or which definition of value applies in a marriage dissolution? Without understanding intended use, intended users and the applicable type and date of value, can AI appropriately select and analyze comparable properties? This certainly cannot be done as reliably as an experienced appraiser. When thousands of dollars may pivot on the answer, disc...