The goal of algorithms is to maximize everything. They have the power to end the chaos, ease burdens, and save lives. However, experts are concerned that they may also lead to an increase in unemployment, propagate bias, create filter bubbles, limit options, innovation, and spontaneity, and place an excessive amount of control in the hands of corporations and governments.
The same is true of the real estate market. Homesellers and buyers have access to more tools than ever before for valuation.
However, as the variety and number of tools increase, confusion elevates as well. If you are a homeowner, you may have wondered how much your property has valued since you first bought it. Here are some reasons why working with a local real estate expert is always preferable if you want to maximize your equity and learn how much your home is actually worth. These real estate websites rely on potentially dated algorithms that use historical sold data, user-reported information, and property tax assessments to determine a potential selling price.
Even though there is a lot of room for error, some estimators use AI to check photos of your house. This can only be determined through personal conversations with a real expert who can provide accountability. The main problem with automatic home estimators is their overall accuracy or lack thereof.
Zillow may have exceeded the capabilities of its algorithm in an effort to gain market share quickly, according to Tomasz Piskorski of Columbia Business School and a member of the National Bureau of Economic Research. It is best to hire a professional and pay for a sworn valuation in order to determine value accurately.
