Who will win the presidential election tomorrow? Artificial intelligence (AI) is not only transforming how we predict elections, but it is also dramatically transforming how you'll price houses in the future. Predicting the right listing price can be a bit like using a crystal ball to predict the outcome of tomorrow’s election. By 2020, however, the strategies for predicting both elections and listing prices will most likely be AI driven rather than human driven. Tomorrow’s election provides an excellent example of how various human prediction strategies compare to those used by AI algorithms. Tribal-thinking predictions Tribal-thinking predictions are made based upon group membership and emotion. Winning is tantamount. In terms of the election, “tribes” include party affiliation, age, gender, ethnicity, and insiders versus outsiders. Tribe members cherry pick the data to support their beliefs. Because tribe members have a strong need to be right, changing their posi...
- Tribal thinking predictions are made based upon group membership and emotion.
- The best real estate agents can price a listing without ever looking at a CMA; this is called being a market expert.
- The outcomes of both election predictions and pricing satisfaction will depend on the data used for analysis.