Traditionally, the value of a property has always been subjective. But AI brought an accuracy that has never been experienced before in appraisals. AI can actually analyze thousands of data points that may include historical sales, local amenities, the condition of the property, and even neighborhood crime rates to produce a more objective and precise valuation.
Tools such as Automated Valuation Models (AVMs) are now allowing homebuyers, sellers, and investors to be better informed on the fair market value of the property without resorting to only traditional appraisals. As a result, there is a chance that property prices can be more consistent with the current market, thus limiting overpaying or underselling.