SPOKANE, Wash. – City council is considering the ban on algorithmic rent fixing tools. Algorithms are being used to boost efficiency in the real estate industry, but not everyone is convinced of their value.
Marcus Mathews, a local real estate agent with five years of experience, shared insights on the use of such tools. One of the tools in question is the Zestimate.
“Zestimate goes strictly off an algorithm, so it’s not going to know if your kitchen’s updated if you put in a new bathroom if the roof’s been updated, it just goes off a certain algorithm based on different numbers that homes in your area have sold for,” Mathews said.
He emphasized the challenge of avoiding artificial intelligence in real estate, noting its widespread utility.
“They’re so hard to escape because they are so useful in so many different aspects. I think at the end of the day, if you are going to be renting your house, if you are going to be selling your house, that you should do your own research within the market,” said Mathews.
Mathews pointed out that the Zestimate could be up to 15 percent off the actual value, underscoring the need for human involvement.
“When it comes to all things real estate, I think there always needs to be some sort of human aspect there,” he said.
Spokane City Councilman Zack Zappone has expressed support for eliminating algorithmic rent-fixing tools.
“It’s really about protecting people from increasing rent,” said Zappone.
However, Zappone acknowledged the difficulty in tracking the use of AI by local landlords.
“It’s a really hard thing to know if it’s being used or not because it’s a private company operating a private service,” he said.
Mathews concluded by stressing the importance of a human perspective in real estate.
“Being the eyes on the ground, boots on the ground, essentially, and giving my professional opinion, as opposed to just having them rely on what they’re seeing online with the use of those algorithms,” he said.
