House-Hunting Hack: How 1 in 3 Buyers Are Using AI To Navigate the Market
Written by
Cynthia Measom
Edited by
Caitlyn Moorhead
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Artificial intelligence (AI) is changing how people buy homes. A Veterans United Home Loans survey found that 32% of homebuyers use AI tools to complete tasks like searching for homes, estimating mortgage costs and comparing rates. However, while this strategy can be a valuable resource, that doesn’t mean it’s wise to completely rely on it.
Here are more details on how homebuyers are using AI to house hunt.
Also see eight signs you should look for before buying a house.
How Homebuyers Are Using AI
Most buyers are using AI to speed up their home search, but that’s not all they use it for. Here’s what else the survey found:
- 38% take virtual home tours
- 37% use AI to search for listings
- 32% estimate monthly mortgage payments
- 32% check property values
- 31% calculate mortgage affordability
- 31% get homebuying tips.
Additionally, 28% use AI to shop for mortgage rates, 27% use it to visualize home renovations and 22% utilize the tool to compare lender reviews.
Most Popular AI Tools for Homebuyers
Not every prospective homebuyer uses the same AI tools. While 58% of homebuyers use ChatGPT to help them research homes, 35% use Meta AI and 34% use Google’s chatbot Gemini. AI-powered platforms, such as Zillow’s natural language search, also help buyers find listings faster.
Here are some other AI tools used by homebuyers, according to the survey.
- Microsoft’s chatbot Co-Pilot: 20%
- Apple’s voice assistant Siri: 20%
- Realtor.com’s Renovation Designer: 20%
- Samsung Galaxy AI: 17%
- House Canary, which offers real estate market and investment insights: 7%
AI’s Limitations
Even though AI’s superpower is that it can process information in seconds, it can’t guarantee accuracy.
Chris Birk, vice president of mortgage insight at Veterans United Home Loans, has seen where AI falls short in the homebuying process.
“AI tools can provide homebuyers with a solid foundation of knowledge, but big gaps can emerge when general guidance gives way to the complexities of individual financial situations,” he said. “Mortgage lending can involve a lot of nuances, particularly when it comes to things like documenting income, self-employment scenarios, tax considerations, employment history and more. Plus, these are all guidelines that can vary widely among lenders.”
While AI tools can help when house hunting, professional help is always good to have as well. “AI can help buyers better understand their mortgage options and what types of loans might work best for them,” Birk said. “There’s a lot of potential with AI tools, but the reality is they can and do make mistakes. Talk with multiple mortgage professionals you trust and have them run the numbers for your specific situation.”
Although AI can make house hunting easier by helping users search for listings or take virtual home tours, it’s important to avoid using it blindly when it comes to financial decisions. As Birk pointed out, AI can miscalculate numbers and miss important details that affect affordability.
The bottom line is that although it can be a helpful house-hunting tool when it comes to mortgage rates, loan options and other financial decisions, it’s best to talk to an experienced mortgage professional.
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