Can AI Accurately Price Homes? A Real Estate Agent Puts It to the Test

As artificial intelligence continues to reshape industries, many are wondering how effective it is in the real estate world—particularly when it comes to pricing homes for sale. To find out, I decided to test some of the most popular AI programs by asking them to evaluate one of my listings in Kelowna. The results were mixed at best, highlighting both the promise and limitations of today’s AI tools.

First up was Grok 3, which produced a detailed analysis of the 2,527-square-foot, five-bedroom, 3.5-bathroom property on a 9,583-square-foot lot. It estimated the home’s value between $1.23 million and $1.39 million based on comparable sales, square footage, and Kelowna’s market trends. However, there was a major flaw—Grok mistakenly identified the home’s location as Black Mountain instead of North Rutland, calling into question the reliability of its recommendations. While its pricing logic was reasonable, the location error highlights the need for future AI improvements, possibly including GPS data integration.

Meta’s AI fared even worse. Instead of offering a valuation, it responded with a list of questions, directing me to resources like B.C. Assessment and Zillow without actually providing an estimate. In other words, it effectively said, “I don’t know,” but took 134 words to get there. Compared to the other AIs that at least attempted an answer, Meta’s system didn’t even step up to the plate, leaving much to be desired for anyone seeking practical assistance.

ChatGPT, meanwhile, came closest to delivering a helpful estimate. It suggested a price range of $900,000 to $950,000, basing its estimate on similar homes nearby. While this range was lower than Grok’s suggestion, it reflected actual list prices in the immediate area. However, list prices themselves are set by real estate agents and sellers, meaning ChatGPT was ultimately using human-determined values to form its opinion—an important reminder that AI, for now, still leans heavily on human input and market signals.

In the end, the real estate market—not AI—sets a home’s true value when a buyer and seller agree on a final price. Agents play a critical role not just in assessing a property’s condition and location, but also in navigating seller priorities and changing market conditions. Especially in today’s environment, where more inventory and fewer buyers can leave overpriced homes sitting for months, a skilled agent can make the difference between a stale listing and a successful sale.

For now, I have to say: Score one for humans. While AI tools can assist with preliminary research, they’re not ready to replace experienced real estate agents when it comes to understanding the nuances that truly determine a home’s market value.