When AI Gets It Wrong in Real Estate
A recent property transaction in the East Rand nearly fell apart — not because the price was wrong, but because of conflicting advice from AI.
Both the buyer and the seller turned to ChatGPT for guidance.
The seller was told the offer was too low and that they could achieve a higher price.
The buyer, on the other hand, was told they were overpaying and should be cautious.
Both sides believed they had solid, data-backed reasoning.
Both were ready to walk away.
And yet, the deal itself was correctly positioned within the market.
A Real Example from Farrarmere, Benoni
This is not theory — it’s a real transaction.
A property in Farrarmere, Benoni was listed at R2,200,000 and received an offer of R2,100,000.
On paper, this is a relatively standard negotiation range in the East Rand market.
However, once both parties consulted AI:
- The seller became convinced the offer was too low
- The buyer became convinced the price was too high
The result was hesitation on both sides, and the deal nearly collapsed. It was only once a professional agent stepped in — bringing real-time market insight, comparable sales, and negotiation clarity — that both parties were able to see the situation objectively. The outcome? The property successfully sold for R2,100,000. This scenario is becoming increasingly common across Boksburg, Benoni, Germiston and Kempton Park, as more buyers and sellers turn to AI for guidance in property decisions.
So why did AI Give Two Different Answers:
AI tools like ChatGPT are powerful, but they do not operate with full market awareness.
They analyse patterns, general data, and the way a question is asked — but they do not understand the full context of a live property transaction.
If a seller asks, “Can I get more for my property?”, the response will often lean toward maximising value.
If a buyer asks, “Am I overpaying?”, the response will often lean toward caution.
AI is designed to assist the individual asking the question — not to balance both sides of a negotiation.
This is why two people looking at the exact same deal can receive completely different answers.
Can AI Accurately Price a Property?
AI can provide general pricing guidance based on historical data and trends, but it cannot determine a property’s true market value in real time. It does not have access to live buyer demand, competing offers, or the unique factors that influence how a specific property will perform in the current market.
The Risk of Relying on AI Alone
The challenge is not that AI is wrong — it’s that it is incomplete.
When used in isolation, it can:
- Reinforce what each party wants to believe
- Miss critical timing and demand factors
- Overlook negotiation dynamics
- Create unnecessary doubt in otherwise strong deals
In property, decisions are rarely made on data alone. They are influenced by timing, motivation, competition, and strategy — all of which require human interpretation.
What the East Rand Market Tells Us:
Across Boksburg, Benoni, Germiston and Kempton Park, we consistently see the same patterns:
Properties priced correctly in line with market conditions tend to attract strong interest and sell within a reasonable timeframe. Properties that are overpriced often remain on the market longer, leading to price reductions and ultimately lower final sale prices. The difference lies not in access to information, but in the ability to interpret that information accurately in the current moment.
What Actually Made the Deal Work?
In the Farrarmere example, the turning point came down to clarity. By analysing recent comparable sales, assessing current buyer activity in Benoni, and understanding the competitive landscape, the agent was able to demonstrate that R2,100,000 was a fair and accurate reflection of the market. Just as importantly, the agent was able to remove the emotional uncertainty created by conflicting AI advice. This allowed both buyer and seller to move forward with confidence — and ultimately conclude a successful transaction.
Why Do Buyers and Sellers Get Different Answers from AI?
AI responds based on the intent behind each question. This means that buyers and sellers can receive completely different guidance on the same property, as the system is designed to support each user individually rather than provide a balanced, transaction-focused perspective.
The Cost of Getting It Wrong...
When pricing or negotiation decisions are based on incomplete information, the consequences can be significant.
Overpricing can lead to extended time on market and eventual price reductions.
Underpricing can result in immediate financial loss.
Delays caused by uncertainty can result in buyers moving on to other opportunities.
In many cases, the cost of a missed or delayed decision far outweighs the value of professional guidance.
Why Professional Guidance Still Matters
A real estate agent brings more than just data.
They bring:
- Real-time understanding of buyer behaviour
- Insight into local market conditions
- Negotiation experience
- The ability to align both parties toward a successful outcome
The goal is not simply to achieve a higher or lower price — it is to ensure that the right deal is reached and successfully concluded.
A Smarter Approach: Use AI, But Don’t Rely on It Alone
AI is a valuable tool. It can help you ask better questions and understand general market trends. However, it should be used as a support tool, not a decision-maker. The most effective property decisions are made when data, experience, and real-time market insight come together.
Get Your Real Property Value
Before making a decision based on AI-driven advice, it is worth understanding what your property is truly worth in today’s market.
At Harcourts Blue, we provide:
- Data-backed property assessments
- Real-time market insights
- Strategic guidance tailored to your area
📍 Serving Boksburg, Benoni, Germiston & Kempton Park (East Rand)
