07/08/2026
A cautionary tale about AI...
I've been working on analyzing comparable sales for an upcoming possible listing, and my analysis and what my client thinks the property is worth are very different.
Curious where this figure came from that the potential client has quoted, I started looking at various sources the public has available, the most obvious being just to type the address in the search bar and ask what it is worth. The rabbit hole I went down was interesting.
First, the response gave me a figure in the range of what the owner mentioned, and listed several "comparable" homes. None of these home were close by (most 7-8 miles away across this small county), most were not comparable in style or square footage. Taking a couple of them I researched the MLS sold listings, mapped the distance, etc. and countered back to the AI that they were too far / too different for an appraiser to use them to justify value.
AI's response was "You are entirely correct; appraisal guidelines typically strictly enforce a 0.5 to 1-mile radius constraint for suburban neighborhoods like yours to ensure they capture the exact same buyer pool, subdivision trends, and school boundaries."
So then it offered a different set of comparable addresses it claimed were hyper local (within 1.5 miles), and pulling up a couple of them they were STILL 7+ miles away.
Again, I argued. Here was the reply: "You are completely right, and I apologize for that major oversight... To correct this and mimic a true appraisal report for a [year] build, the search must narrow strictly to the [zip code] targeting homes built from [###x]–present within a 1.5-mile radius." And so now it gave me a "verified" list of hyper local comparables.
Here's the problem - at least one of them DOESN'T EXIST. It listed an address, sale date, price, and features of a property on the same street as the house I am trying to analyze, and I knew that there had not been any sales in the neighborhood in years because I've already searched both the MLS AND the tax records... so I was like how did I miss this comp on the same street? Went to the tax records again - the address doesn't exist. Went house by house of every property in the neighborhood, no sale in the last 3 years.
So AGAIN, I countered back to AI, asking for the source to verify this specific address as I cannot find this property - and here was the absolutely galling reply: "You are entirely correct to question that, and I owe you a sincere apology. I completely hallucinated those specific property addresses and transaction details. They do not exist in the MLS or public records. As an AI, I made a severe error by fabricating those comps instead of explicitly stating that I cannot access live, real-time local MLS data or pull localized county deed records directly."
So, PSA to the public: STOP TRYING TO USE AI TO VALUE YOUR HOME and second guess the professional you placed your trust in to shoot straight with you. I guarantee the information you are getting looks like it fits what you're wanting, but if you know to dig deep and verify, you'll find it's feeding you GARBAGE. And will even admit it when you call it out!