The majority of estate agents rely on AI or automated valuation models (AVMs) – despite most distrusting the results.
The consensus is they routinely fail to reflect a homes true value, especially in northern lower-income, and rural areas – which means sellers could be missing out on tens of thousands of pounds.
Algorithms routinely fail to take into account recent renovations, unique features, or the condition of the property.
A spokesperson from Alto, a software company which conducted the poll, said: “AI is encroaching more and more on so many areas of our lives, but housing valuations isn’t one that usually springs to the front of people’s minds.
“Agents are telling us AI is undervaluing sellers’ homes – and we should be listening.
“These tools can save time and provide a starting point, but they’re no substitute for local knowledge and real-world experience.
“The risk is that homes are priced based on flawed data, and sellers lose out.
“We trust agents – and we believe they should be empowered, not replaced.”
Some 78% of agents rely heavily on AI or automated valuation models (AVMs) when putting a price on a home – and as many as 23% claimed to ‘always’ use them.
Despite this, three quarters (73%) admit they don’t even fully trust the tools they’re using to make these calculations.
Most (87%) feel AI-powered valuation tools fail to reflect a home’s true value.
When asked how much they typically adjust AVM-generated valuations, nearly a third (28%) reported changing the figure by £10,001–£20,000, and 10% said they regularly amend valuations by more than £20,000.