AI may offer you quick estimates, but it can't see local trends, market shifts, or what makes your home unique.

Have you been wanting to put your Minnesota home up for sale? AI home pricing is fast, easy, and often free, and it can provide a comprehensive view of the market in just a matter of seconds. While it might sound like this is the best way to determine the value of your property, using AI alone to price your home may not always be the best strategy—and it could even cost you thousands if it undervalues your property. 

Here’s where AI misses the mark:

AI can’t price according to season. The seasons have a serious impact on real estate markets, affecting prices in many ways. Demand may increase in some months, which can lead to homes selling faster and sometimes for a higher price. Buyers may also be less busy at other times of the year, which could result in more negotiations and slower sales.

“Using AI combined with a deep understanding of the market is often the most effective approach.””

Since it only examines past numbers, AI often overlooks these small changes. It’s a tool, not a human being, which means it can’t fully understand what's going on in the business as a whole or the current trends that affect how people buy things. Because the housing market changes naturally based on the economy, AI alone might not give you a complete figure of when and how to list your home.

AI does not understand market competition. Real estate competition can quickly change, and AI often fails to keep up with these changes. From time to time, the number of homes for sale changes, which can affect how buyers see yours. When several similar homes come on the market, buyers are more likely to scrutinize each one and be more aggressive in their price negotiations. 

It's possible that AI may not notice these changes or understand how the market impacts the economy, and this is where local agents, like us, come into play. We are well aware of current market conditions and can help you position your home to stand out. In a nutshell, using AI combined with a deep understanding of the market is often the most effective approach. Just remember that AI can help you with some data, but a human expert can give you better context.

If you’re thinking about selling your home, feel free to reach out at (651) 998-9829 or info@holzgroup.com. I'd be happy to provide you with a free, no-obligation review of your property, including an estimate of its potential value and suggestions on how to increase its value.