How Are Homebuyers Using AI?

Artificial intelligence is everywhere, and 1 in 5 prospective homebuyers and current homeowners have turned to it for homebuying research, according to the National Association of Realtors®, via Bank of America. 

Millennials and Gen Z make up most of those utilizing AI for these purposes, with 28% and 32%, respectively, saying they’ve used AI to support their home search and/or for financial planning. 

The top ways AI is being used in the home search include:  

1. Estimating affordability, mortgage payments or closing costs (57%) 
2. General education and research about the homebuying process (55%) 
3. Researching neighborhoods, market trends or property values (52%) 

Still, prospective buyers said they prefer human expertise for key steps in the homebuying process, including touring homes (55%) and legal or contractual advice (54%). 

As advanced as AI is, it’s important for consumers to remember that it’s not always right, and for Realtors® to remember that they’re the human experts in the industry.  

“Be aware of what your clients are doing with AI,” Dr. Lisa Sturtevant, chief economist with Bright MLS, told Realtors® during PAR’s Mid-Year Housing Market Update webinar in June. 

Sturtevant went on to tell viewers about a real-life scenario in which someone posed as a homeseller and asked ChatGPT, “Did I price my house appropriately?” ChatGPT replied, “No, you should have priced it higher.” Then, with the same house, they pretended to be the buyer and said, “I offered this on the house. Should I have offered lower?” to which ChatGPT answered, “Yes, you should have offered lower.” 

“ChatGPT will tell you what you want to hear,” she stressed. “And that makes it very difficult for a real estate agent or a Realtor® who’s trying to help make data-based decisions about pricing and about offers.” 

“Help them navigate the actual facts so that they can make informed and confident decisions.”