Aussie home buyers are being warned over a growing reliance on AI tools that can deliver outdated data, unrealistic budgets and \u201cdud\u201d advice when searching for property.<\/p>\n
Property experts have issued an urgent warning to house hunters using artificial intelligence to guide their decisions, revealing the technology can lead buyers astray and cost them thousands.<\/p>\n
Buyer\u2019s advocate and M R Advocacy director Madeleine Roberts said generic AI platforms were not built for property and were already causing concern.<\/p>\n
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Experts warn buyers using AI the wrong way in their property search could cost themselves thousands.<\/p>\n
RELATED: Revealed: Melb suburbs where you can pocket $1m<\/a><\/p>\n Aussie homes slash $3bn from annual energy bills<\/a><\/p>\n Bidding war looms for $8m Melb retirement village<\/a><\/p>\n \u201cThe generic platforms don\u2019t give the right answers,\u201d Ms Roberts said.<\/p>\n \u201cTools like ChatGPT or Claude don\u2019t have up-to-date property data.\u201d<\/p>\n She said many tools leaned heavily on lifestyle factors such as amenities and commute times, rather than the fundamentals that actually drive capital growth.<\/p>\n \u201cAI often focuses on lifestyle factors, but they\u2019re not the drivers of capital growth,\u201d she said.<\/p>\n Madeleine Roberts says generic AI tools don\u2019t provide accurate or up-to-date property data.<\/p>\n \u201cWhat it\u2019s suggesting is \u2018affordable\u2019 might have been accurate four or five months ago, but in a rising market that can quickly become outdated.<\/p>\n \u201cBuyers can end up with a completely unrealistic view of what they can actually afford.\u201d<\/p>\n Ms Roberts said relying on the technology could reinforce confidence in decisions that were not grounded in current market conditions.<\/p>\n Artificial intelligence is becoming a popular tool for buyers researching suburbs and property prices.<\/p>\n \u201cIt can reinforce confidence even when the information isn\u2019t entirely accurate,\u201d she said.<\/p>\n PIPA chair and buyers agent Cate Bakos said she was seeing the consequences play out regularly, with buyers missing opportunities and entering the market with the wrong expectations.<\/p>\n \u201cI regularly speak to buyers who\u2019ve missed out on properties they should have secured and are now feeling genuine regret,\u201d Ms Bakos said.<\/p>\n \u201cOthers have gone to auction with completely the wrong budget in mind. They\u2019ve trusted AI outputs and got it badly wrong.\u201d<\/p>\n Cate Bakos says buyers are going to auction with the wrong budgets after relying on AI advice.<\/p>\n She said relying on automated valuations and comparable sales without proper checks could also lead to costly mistakes.<\/p>\n \u201cWhen people rely on AI without cross-checking it with human judgement, the margin for error can be significant,\u201d she said.<\/p>\n \u201cAI can sound confident, but that doesn\u2019t mean it\u2019s correct.\u201d<\/p>\n Ms Bakos said buyers were also at risk of making long-term decisions based on incomplete data, particularly when planning renovations or redevelopment.<\/p>\n \u201cThe first risk is overpaying. The second is setting your budget too low and missing out,\u201d she said.<\/p>\n \u201cAnd the third is buying with a future plan that doesn\u2019t hold up because of planning restrictions.\u201d<\/p>\n Jordan Veleski says buyers need to be more specific when using AI to get meaningful insights.<\/p>\n Flo buyers agents director Jordan Veleski said the issue was not the technology itself, but how it was being used.<\/p>\n \u201cThe biggest issue is buyers are asking very general questions without giving the tool any real direction,\u201d Mr Veleski said.<\/p>\n \u201cPeople are still using AI like Google instead of guiding it properly.<\/p>\n \u201cAI needs detail. The more detail you give it, the better the output.\u201d<\/p>\n Mr Veleski said buyers who understood how to use the technology properly could extract valuable insights, including trends in vacancy rates, demand and days on market.<\/p>\n \u201cA lot of the research people used to pay thousands for can now be done in minutes,\u201d he said.<\/p>\n \u201cBut it\u2019s a tool, not the final decision-maker.\u201d<\/p>\n Sign up to the Herald Sun Weekly Real Estate Update. Click here <\/a>to get the latest Victorian property market news delivered direct to your inbox.<\/p>\n MORE: Melb lockdown DIY disaster turns into $960k payday<\/p>\n
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