There is a new participant showing up in real estate negotiations. It’s not the buyer’s father-in-law, the seller’s neighbor or the cousin who bought a house once in 2007.
It is ChatGPT.
More buyers and sellers are arriving at the negotiating table armed with AI-generated strategies. They may ask their agent to submit an unusually low offer, demand that every inspection item be repaired, reject a reasonable counteroffer or threaten to terminate the transaction because “ChatGPT said this is what we should do.”
AI can be an excellent resource. It can explain unfamiliar terminology, organize questions and help consumers understand the basic steps of buying or selling a home.
But it does not know the transaction.
AI knows the prompt, not the deal
ChatGPT typically receives a short, one-sided summary of what happened.
It may know that the seller rejected a repair request. It may not know that the home was already priced below comparable properties or that the seller previously agreed to other concessions
It may know that a buyer wants to offer 15 percent below the asking price. It may not know that three other buyers attended the second showing or that another offer is expected that afternoon.
It does not hear the listing agent’s tone of voice. It cannot read the dynamics between the parties. It does not know when a seller is close to compromising or when one additional demand could end the conversation entirely.
The client sees a confident, detailed response. The agent sees all the information that is missing.
That is where the trouble begins.
Confidence can look like competence
AI-generated advice often sounds decisive:
- “Hold firm.”
- “Do not accept the first counteroffer.”
- “Ask for a larger credit.”
- “Be prepared to walk away.”
Meanwhile, the agent may say, “We can take that position, but it could cost you the house.”
To the client, the chatbot may sound like a fearless negotiator, while the agent sounds overly cautious. Experienced agents understand that caution is sometimes exactly what keeps a transaction alive.
Real estate negotiation is not about proving who is the toughest person at the table. It is about helping the client achieve the best reasonable outcome without creating unnecessary risk or accidentally setting the deal on fire.
ChatGPT can recommend playing hardball. It will not be there to explain why the seller accepted another offer.
Do not turn it into agent versus AI
When clients bring AI-generated advice into the conversation, dismissing it completely may only make them trust it more.
Instead, agents can ask three questions:
1. What information did you give the AI?
The answer often reveals how much transaction context was missing from the prompt.
2. What does the AI not know?
Explain the local market conditions, contractual deadlines, competing interests, previous communication between the parties and the personalities involved.
3. Is the potential gain worth the risk?
Holding firm over a relatively small concession may feel like winning until the client loses the property, the buyer or the deal altogether.
This approach respects the client’s research while bringing the discussion back to transaction-specific facts that should not guide the decision.
Use AI to create questions, not decisions
The best use of AI during a real estate transaction is not to ask, “What should I demand?” A better question is, “What should I discuss with my agent before responding?”
That small change allows consumers to become better informed without treating a general-purpose chatbot as a substitute for professional, transaction-specific guidance.
AI can help buyers and sellers prepare. An experienced agent provides context, judgment, accountability, local knowledge and the ability to read the room.
ChatGPT may produce a brilliant-sounding negotiation strategy. It will not attend the closing. More importantly, it will not be there to explain why there is no longer a closing to attend.
Scott Coggins is the owner and principal broker at The Agency Nashville. Get connected on LinkedIn and Instagram.
