Artificial intelligence is already part of buying and selling a home: pricing estimates, listing photos, loan decisions, and appraisals. Used well, it can make values faster and fairer. Used carelessly, it can repeat old mistakes at scale.
Where AI is being used
- Home values. Automated valuation models estimate prices from sales and property data. Read how AVMs work.
- Alternatives to a full appraisal. Fannie Mae now offers several paths. They range from accepting the sale price based on data alone, to having a trained data collector measure and photograph the home for an appraiser who never visits.
- Photos and condition. Software can read listing photos to spot updated kitchens, roof condition, or damage.
- Ads and screening. Algorithms decide who sees a home ad and help screen rental applicants.
A cautionary tale: Zillow Offers
From 2018 to 2021, Zillow used its pricing algorithms to buy homes directly and resell them. In November 2021, it shut the business down. Zillow wrote down more than $500 million on homes it owned and cut about 25% of its staff. Its CEO said the risk of getting prices wrong was greater than expected. The lesson: even the best home-value models can miss when markets move fast.
The fairness question
AI learns from past data. If past appraisals undervalued homes in Black neighborhoods, a model trained on those values can learn the same pattern. That's why regulators have stepped in:
- A federal rule that took effect in October 2025 requires lenders using automated valuations to comply with nondiscrimination laws.
- In May 2024, HUD issued guidance that the Fair Housing Act applies to AI used in tenant screening and online housing ads. HUD archived that guidance in early 2025, but the Fair Housing Act itself still applies.
How we use AI at Home Equalizer
- We never use race or neighborhood demographics to set a value. We use them only to test that values come out fair.
- The same rules for every home, including the same radius for comparable sales.
- We show our work. Every sale, every match score, and how accurate our values have been in testing.
- People stay in the loop. Licensed appraisers review any home that needs a closer look.