Real estate agent blasts the growing trend of homebuyers using AI to challenge property prices

By SARAH BROOKES - SENIOR REPORTER, AUSTRALIA Published: 14:32, 3 July 2026 | Updated: 14:39, 3 July 2026 A real estate agent has blasted homebuyers for using artificial intelligence to try and negotiate prices. A-Class Estate Agents director Amir Jahan warned that AI was leading buyers astray and feeding them with false information about the market. He said one prospective buyer recently challenged the price of a $700,000 unit after running the property through ChatGPT. 'I put the property on ChatGPT and ChatGPT told me the property is worth $550,000, so why are you asking me $700,000?' the buyer told him. Mr Jahan said over-reliance on the platform had even caused some buyers to walk away from a sale as they were convinced the deal was overpriced. He said the combination of AI and poor advice from friends was making buyers more cautious than previous generations of house hunters. 'They are more logical on what they want to do compared to nine months or a year ago,' he said. Mr Jahan argued the trend was contributing to a slower-moving market, with buyers spending longer to weigh up purchases and scrutinise prices. A-Class Estate Agents director Amir Jahan warned that AI was leading buyers astray and feeding them with false information about the market Last week, it was revealed that auction rates had hit their lowest levels since the Covid pandemic in the country's two biggest markets.   Cotality data showed Sydney had its weakest week of auction sales in more than six years and Melbourne recorded a five-year low.  Mr Jahan said prospective buyers were no longer swayed by the high-pressure sales tactics that often fuelled bidding frenzies during the property boom. Instead, they were increasingly doing their own research, inspecting homes on their merits and making offers only if they believed a property represented genuine value. 'They just come, have a look and if they like it, they pay for it. If they don't like it, they go,' Mr Jahan said. Cotality research director Tim Lawless told the Australian Financial Review the capital city average clearance rate - the percentage of homes up for auction which reach the reserve price - was likely to fall further. 'We are likely to see the auction clearance once again finalise in the low 40 per cent range,' Mr Lawless said on Sunday. 'Since mid-May, the volume of auctions has held consistently lower year-on-year, indicating cyclical factors are at play as vendors rethink their selling plans amid persistently weak clearance rates.' Mr Jahan said the over reliance on the platform had even caused some buyers to walk away from a sale as they were convinced the deal was overpriced (stock image) The capital city clearance rate sat at 42.3 per cent, with Sydney's rate falling 0.1 per cent to 47.3 per cent.  The clearance rate in Melbourne dropped from 50.6 per cent to 50.2 per cent, the lowest since September 2021. Adelaide notably bucked the downward trend with its clearance rate jumping from 40 per cent to 68.7 per cent. The South Australian capital also had more properties go to auction with 115 listed compared to 93 the week earlier. Brisbane recorded the lowest clearance rate of the capital cities at 39.3 per cent. However, the figure marked a six-point increase for the Queensland capital, which recorded a 33.3 per cent clearance rate the week prior. The preliminary clearance rate in the ACT fell to 39.5 per cent from 47.1 per cent and the number of auctions dropped from 63 to 47. The total number of auctions around the country similarly fell to 1,771 from 1,880. The slowdown has been partly linked to the Albanese government's sweeping tax changes. Under the reforms, the existing 50 per cent capital gains tax discount would be scrapped and replaced with a new system featuring a 30 per cent flat tax and an inflation discount. Negative gearing rules would also be tightened, with the tax concessions restricted to newly built properties while existing arrangements in place before May 12 would be grandfathered. The changes are expected to reduce the appeal of residential property investment, potentially shrinking buyer demand.  The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. 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