Zillow`s home-buying debacle shows how hard it is to use AI to value real estate


Zillow`s home-buying debacle shows how hard it is to use AI to value real estate
(CNN)In February, Zillow appeared so confident in its ability to use artificial intelligence to estimate the value of homes that it announced a new option: for certain homes, its so-called "Zestimate" would also represent an initial cash offer from the company to purchase the property. The move, touted by a company exec at the time as "an exciting advancement," was intended to streamline the process for homeowners considering selling to Zillow as part of its home-flipping business. Zillow promoted this option as a way to make it convenient to sell a home while minimizing interactions with others during the pandemic. Just eight months later, however, the company is shutting down that business, Zillow Offers, entirely... ...more RSK: Again it goes to show that a human real estate agent can use data as well as the human gut feeling element, It is an art as much as a science and AI misses the art and judgement component...

- - Volume: 9 - WEEK: 47 Date: 11/16/2021 11:55:56 AM -

(CNN)In February, Zillow appeared so confident in its ability to use artificial intelligence to estimate the value of homes that it announced a new option: for certain homes, its so-called "Zestimate" would also represent an initial cash offer from the company to purchase the property.

The move, touted by a company exec at the time as "an exciting advancement," was intended to streamline the process for homeowners considering selling to Zillow as part of its home-flipping business. Zillow promoted this option as a way to make it convenient to sell a home while minimizing interactions with others during the pandemic. Just eight months later, however, the company is shutting down that business, Zillow Offers, entirely...
...more

RSK: Again it goes to show that a human real estate agent can use data as well as the human gut feeling element, It is an art as much as a science and AI misses the art and judgement component...