Should You Trust AI To Price Your Home in 2025?

By Carolina Collective Realty

Carolina Collective Realty is more than just a real estate team—we’re a family helping families achieve their goals. Our journey began with a mission to create a real estate company built on culture, training, and, most importantly, guiding families through one of life’s biggest decisions.

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?

Before you list your home with an AI price estimate, you need to hear this:

I recently worked with a client just outside of town who was ready to sell their four-bedroom home in a competitive market and decided to use an AI tool for a pricing estimate. AI pulled data from recent sales nearby, adjusted for square footage, and looked at market trends. It estimated their home’s value at $620,000.

However, it missed some key features: a $70,000 kitchen renovation with high-end appliances, a full smart-home upgrade, and a prime location on a quiet cul-de-sac with greenbelt views. None of these factors was reflected in the AI estimate.

After I walked through the property and analyzed local buyer demand, we listed the home at $685,000 and received multiple offers within days. That’s a $65,000 difference between the AI estimate and the actual market value.

So, let’s break down what these tools do well, where they fall short, and how to ensure your pricing strategy helps you avoid losing out on thousands.

What AI does well in home valuation. AI tools have come a long way by 2025. They pull in tons of data from public records, MLS sales, and even tax info to give you a quick estimate of your home’s value.

If you’re in a neighborhood with cookie-cutter houses, like a suburban subdivision where every home’s got a similar vibe, these tools can be pretty spot-on. They’re awesome for getting a ballpark figure without picking up the phone to call an agent. Plus, they’re always learning, tweaking their numbers based on stuff like interest rates and market trends. It’s fast, it’s easy, and it’s a solid starting point.

Where AI misses the mark. Despite their strengths, AI tools have notable blind spots. They can’t physically tour your home to assess unique upgrades, like a $40,000 basement turned home theater or breathtaking mountain views.

It also struggles in markets with diverse or limited sales data, like older neighborhoods, custom builds, or rural spots. In fast-changing markets, AI often lags, relying on past sales rather than current buyer behavior. A 2025 survey of real estate pros found that 87% think AI undervalues homes with unique features or upgrades, which could mean fewer buyers or lowball offers for you.

Why local real estate agents still rule. AI’s only as good as the data it has, and that data isn’t always up to speed. A new development down the road or a big community project boosting your neighborhood’s appeal? AI might not know about it yet, but a local agent does. We’re out there seeing what’s selling, what’s sitting, and what buyers are buzzing about at open houses.

Combining AI with expertise. I’m not saying ditch AI. Use it strategically. It’s a great starting point for a general estimate, but you still need a qualified local agent to bring what AI can’t. Top agents combine AI, data-driven insights, and hands-on experience. We assess your home’s unique features, analyze current buyer offers, and track neighborhood trends to build a pricing strategy that’s both competitive and profitable.

If you’re planning to sell this year, don’t let an algorithm alone dictate your price. I can help you build a tailored pricing strategy using tech tools and real-world insights so you can sell your home for the best price possible. Just reach out to our team at 919-782-4503 or send an email to marketing@carolinacollectiverealty.com. We’re happy to help.