See how AI tools are changing how people buy homes and why you still need knowledgeable professionals on your team. 

Use of AI tools is growing among home buyers seeking a house that fits their lifestyle and budget. The tools certainly help streamline the process, but they’re not perfect. Here’s a quick overview to help you get savvy about the uses and limitations of AI in your home-buying journey.

Using AI to find a home

Listing services continually add AI features to their websites to make the home search more seamless. For example, services like alerts when a listing matches your criteria and automated processes for booking a home tour save time and cut down on hassles for home buyers.

Determining home value with AI

If you’ve ever checked out Zillow’s “Zestimate” you’ve taken advantage of an AI tool. In this case, Zillow uses information about the home and local market activity to estimate the home’s value.

A Zestimate can be a good starting point, but its accuracy isn’t precise. The Zillow website says “The nationwide median error rate for the Zestimate for on-market homes is 1.83%, while the Zestimate for off-market homes has a median error rate of 7.01%.”

Calculating mortgage payments and affordability

More and more home buyers are using AI to help them navigate the financial aspects of a purchase. This includes tasks like calculating affordability, estimating monthly payments, shopping for a mortgage and comparing lender reviews.

AI is a powerful visualization tool

If you find it difficult to imagine how a home could look with a makeover, AI tools can picture the all the potential you can’t. For example, Redfin’s Redesign tool lets you apply new choices to a room’s elements, the paint color on walls, countertop finishes and flooring. Some tools go further and virtually stage homes so you can see how furniture and other furnishings will fit in a space.

Keep in mind that some listing photos may have already been edited with AI. These photos can be misleading about the cosmetic and structural condition of the home, as well as what surrounds the home.

Use AI to learn about the mortgage process

Many home buyers use AI chatbots like ChatGPT to learn how the mortgage process works and how to decipher the jargon they’re not familiar with. Chatbots will serve up answers of their choice, but you can fine-tune your prompt to get answers from a specific lender. For example, you could ask, “What does Consumers Credit Union in Michigan say about PMI?” and you’ll see answers sourced from us, including what PMI stands for (private mortgage insurance) and when it’s required.

Use AI as a resource but not the only one

AI is really good at some things but it’s not infallible. There are gaps in AI knowledge; sometimes it provides incorrect answers or information out of context. You don’t want to make one of the biggest financial decisions of your life based solely on AI-generated information. Work with an experienced real estate agent and lender to get reliable answers that consider your financial situation. 

Personalized service when it’s time to get a mortgage

At Consumers, we love tools that help people find and get the home of their dreams. We also know when it comes to financing, every situation is unique to the buyer. When you’re ready to purchase a home turn to us for personalized service and a mortgage tailored for you. Reach out to one of our mortgage loan officers online or call us at 800.991.2221.

 

 All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications and collateral conditions.