Why AI alone can’t maximize renovation ROI for home sellers

When it comes to home renovation, it’s never been easier to pop a few images of your kitchen into an AI tool and ask it to paint the walls a new color or change the cabinets. These tools are fun and helpful for inspiration, but like an unused Pinterest board, often leave users without any actionable path forward. AI has the potential to transform home renovations and the real estate industry at large. In fact, according to Morgan Stanley Research, AI innovations could lead to $34 billion in gains for the real estate industry by 2030. But we must draw the line between automation and human expertise. For home sellers looking to make the most profit on the sale of their home, AI should absolutely support the renovation process, but it can’t replace working with a professional who can advise on budget, timeline and the nuances of every home. A recent survey from Realtor.com found that 82% of Americans are using AI to navigate the housing market. Homeowners looking to sell are increasingly consulting AI-powered tools like Zestimate and Redfin Estimate to anchor their expectations about their home’s market value. These tools serve as a useful benchmark, but the number they provide might only be achieved if the home is fully updated inside. AI cannot evaluate the interior conditions of your home or understand buyer preferences in your specific neighborhood. Driving ROI from a home renovation is a complex equation. A real life expert is the only person who can help sellers understand not only where to start but more importantly, where to stop. Replacing a cabinet leads into replacing a backsplash, which leads into flooring, and before you know it, a home renovation has spiraled well out of budget. Recent statistics from Clever estimate that a startling 63% of homeowners end up in debt after a renovation. Human experts help prevent this outcome by educating sellers on how much to invest, and when additional upgrades will no longer deliver a return. When navigating renovations specifically for a home sale, sellers need someone thinking about their financial outcome as the goal. It’s also important to remember that pricing changes all the time. Renovation costs are constantly shifting, as labor and materials fluctuate based on region, market demand, and even environmental events like extreme weather disruptions. An AI tool cannot reliably account for real-time, hyper-local pricing changes, and it certainly won’t know what countertops cost this month in your specific market. Remember that the renovation process can often be tied to major life transitions and therefore an emotional time for the homeowner. AI cannot empathize with the adult children helping aging parents move out of their family home, or with first-time buyers feeling anxious about making the best move to support their growing family. Trust is an essential component of this process. Homeowners are not looking to hand decisions over to AI; they want to engage with experts, build connections, and feel supported by a team who can guide them through difficult choices. These moments call for listening, problem solving, and collaboration. While AI serves as a helpful support tool in research and vision, the human touch is what is actually meaningful to homeowners. AI is everywhere, so the industry will adopt it, but we need to ask ourselves critical questions when creating new tools. Is this tool solving a real problem, or is it adding to the noise? Agents and industry professionals need clear reasons to invest their time and energy in learning new tools. They rely on long-established processes and are unlikely to adopt new technology unless the value is clear and immediate. For AI solutions to make an impact, they must address a clear pain point that the agent is aware of. AI is kind of like an assistant, or an intern. Where it shines is in its ability to aggregate data, generate initial concepts, and even scan spaces. Where it falls short is its judgement and its ability to see the whole picture. At this point, we’ve all experienced AI getting it wrong, and when it comes to planning renovations related to a homesale, those errors can be extremely costly. So yes, let’s use AI to inform our decisions. But when it comes to renovations, human expertise is essential. Amanda Valente is Co-Founder and COO of Renovation Sells. This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected]