Algorithmic Bias

LinkedIn Post 07: Algorithmic Bias

Your synthetic comparable algorithm is well-trained. It processes thousands of transactions. It identifies patterns humans would miss.

But does it have blind spots?

Algorithmic bias is real. Machine learning models can systematically misprice certain property types, locations, or price ranges. These biases are often subtle—the algorithm performs well overall but fails in specific segments.

Before using synthetic comparables, test for bias: Run the algorithm on transactions it's never seen. Compare outputs to actual prices. Do errors cluster in certain property types or markets?

If yes, flag it. Document it. Adjust your weighting or exclude the synthetic comparable from analysis.

Bias testing isn't optional. It's due diligence.

#AI #RealEstate #Valuation #Bias #DataQuality