A poll claims that it shows nine in 10 estate agents believing AI under-values properties.
The poll was relatively small – just 250 agents – but 87% suggested that automated valuation models (AVMs) failed to reflect a home’s true value.
However 78% admitted to relying heavily on AVMs and 23% saying they had ‘always’ used them.
When asked how much they typically adjust AVM-generated valuations, 28% reported changing the figure by £10,000 to £20,000, and 10% said they regularly amend valuations by more than £20,000.
Agents also raised concerns about regional fairness. Some 20% believed the tools tended to undervalue rural properties, and 11% thought they ‘strongly undervalued’ Northern or lower-income areas.
A spokesperson from Alto, which commissioned the research, says: “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.”
77% think this technology, at least sometimes, fails to account for key factors that influence a property’s true value. One area they felt was especially lacking was the algorithms’ abilities to detect added value to a house, in areas such as recent renovations, unique features, or the condition of the property.
Other important elements often overlooked during an evaluation were noise levels (29%), crime rates (26%), and economic conditions (24%).
Especially when considering elements homeowners have invested in themselves, these oversights can be costly – with the most ignored additions being extensions (26%), loft conversions (26%), and smart home technology (25%).
The least accurate valuations were also found to occur in properties in rapidly changing markets (27%), rural locations (23%), and transitional neighbourhoods (21%).
But two thirds continue to use the AI-driven systems for the prime reason that they save time.
Alto’s spokesperson adds: “This just goes to show there are inconsistencies with this technology – across the country and when it comes to specific features. We need to ensure that we’re not losing our human touch and that people can trust in their estate agents during a time that can already be incredibly stressful.
“AI has its place, but it should be used to support professionals, not override them. Selling your home can be an emotional time and will only be more so if people feel they’re not getting what they truly deserve.”
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