AI Parameters
What is Max Tokens?
Max tokens is the parameter that sets the maximum length of an AI response—controlling how long or short the output will be, measured in tokens (roughly 0.75 words per token), ensuring you get the right amount of content for each task.
Understanding Max Tokens
Have you ever asked AI for a "brief summary" and gotten a 1,000-word essay? Or asked for a comprehensive analysis and received three sentences? Max tokens is the parameter that solves this by setting an upper limit on how long the AI's response can be.
A token is roughly three-quarters of a word in English. So 100 max tokens gives you approximately 75 words, 500 tokens gives you about 375 words, and 2,000 tokens gives you roughly 1,500 words. Setting max tokens tells the model: "don't generate more than this amount of text." It's a ceiling, not a target—the model might generate less if it completes its response before hitting the limit.
For real estate professionals, max tokens is particularly useful when you need content that fits specific format requirements. MLS descriptions often have character limits. Social media posts have platform constraints. Email subject lines need to be concise. By setting appropriate max tokens (or including length constraints in your prompt using the 5 Essentials framework), you get outputs that fit your needs without extensive editing.
Understanding max tokens also helps with cost management when using AI through APIs. Since you pay per token (both input and output), setting appropriate max tokens prevents unnecessarily long responses that cost more. It's part of the broader model parameters toolkit that gives you fine-grained control over AI outputs.
Key Concepts
Output Length Control
Max tokens sets the ceiling for response length—the model won't generate more text than the specified limit allows.
Token-to-Word Ratio
In English, one token is roughly 0.75 words. So 100 tokens ≈ 75 words, 1000 tokens ≈ 750 words.
Cost Implications
In API usage, you pay for output tokens. Setting appropriate max tokens prevents overly long (and expensive) responses.
Max Tokens for Real Estate
Here's how real estate professionals apply Max Tokens in practice:
MLS-Compliant Descriptions
Set max tokens to match your MLS's character limit, ensuring AI-generated descriptions don't need manual trimming.
Your MLS allows 1,000 characters (~185 words, ~250 tokens). Set max tokens to 250, or include in your prompt: 'Write a listing description in under 180 words.' This prevents the common problem of AI generating 400-word descriptions that must be painfully cut down.
Social Media Post Sizing
Generate platform-appropriate content by setting token limits that match each platform's constraints.
Instagram caption: max ~325 tokens (250 words). Twitter/X post: max ~50 tokens (280 characters). LinkedIn post: max ~400 tokens (300 words). Facebook post: max ~200 tokens (150 words). Set these limits to get ready-to-post content without trimming.
Email Length Optimization
Control email length for different purposes—keeping prospecting emails concise and transaction updates appropriately detailed.
Prospecting email: max 200 tokens (150 words—short and punchy). Transaction update: max 500 tokens (375 words—detailed but scannable). Newsletter: max 1,000 tokens (750 words—comprehensive). Match the format to the purpose.
API Cost Optimization
When building automated AI workflows, setting appropriate max tokens prevents unnecessarily expensive responses.
An automated lead response system generating 200 responses/month: Setting max tokens to 300 (appropriate for a personalized response) instead of leaving it at the default 4,096 could reduce API costs by 80% while producing better-focused responses.
When to Use Max Tokens (and When Not To)
Use Max Tokens For:
- Content needs to fit specific format requirements (MLS limits, social media, email)
- API workflows where output length affects cost
- When AI consistently generates responses that are too long for your needs
- Batch processing where consistent output lengths improve workflow efficiency
Skip Max Tokens For:
- Exploratory prompts where you don't know how long the response should be
- Complex analyses where truncation could cut off important conclusions
- Creative brainstorming where length shouldn't be constrained
- When using the free chat interface where token limits don't affect cost
Frequently Asked Questions
What is max tokens in AI?
Max tokens is a parameter that sets the maximum length of an AI model's response, measured in tokens (roughly 0.75 words each in English). If you set max tokens to 500, the model's response will be at most ~375 words. It acts as a ceiling—the model may generate less if it completes its thought before reaching the limit, but it won't exceed it. This is useful for controlling output length and managing API costs.
How do I convert between tokens and words?
A rough conversion: 1 token ≈ 0.75 English words, or about 4 characters. So 100 tokens ≈ 75 words, 500 tokens ≈ 375 words, and 1,000 tokens ≈ 750 words. For MLS character limits, 1 token ≈ 4 characters. These are approximations—actual token counts vary by word complexity and language. Most AI platforms show exact token counts in their interfaces or documentation.
What happens if my response gets cut off at the max token limit?
If the model hits the max token limit mid-sentence, the response will end abruptly—potentially cutting off important conclusions or final paragraphs. To prevent this, set max tokens slightly higher than you need, or include a length instruction in your prompt ('Keep your response under 200 words') which gives the model a target to aim for naturally rather than an abrupt cutoff.
Where can I set max tokens?
In standard chat interfaces (ChatGPT, Claude.ai), you typically control length through prompt instructions rather than a specific max tokens setting. Max tokens is available in API interfaces, platforms like OpenAI Playground and Google AI Studio, and third-party tools that expose model parameters. The 5 Essentials framework's Constraints component is the natural place to include length specifications in any prompt.
Sources & Further Reading
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