The Truth About Zillow Estimates: What Every Homeowner Should Know

When you’re thinking about buying or selling a home, one of the first places you might visit is Zillow. Known for its user-friendly interface and seemingly instant home value estimates—known as “Zestimates”—Zillow has become a go-to resource for many. But just how accurate are those numbers?

Let’s dig into the truth about Zillow estimates and what they really mean for homeowners, buyers, and sellers.

What Is a Zestimate?

A Zestimate is Zillow’s estimated market value for a home, calculated using a proprietary algorithm that pulls data from public records, MLS feeds, past sales, tax assessments, and user-submitted information. It’s meant to provide a general idea of what a property might be worth in today’s market.

Sounds helpful, right? Well, not so fast.

Why Zestimates Can Be Misleading

Despite their popularity, Zestimates are not appraisals and shouldn’t be treated as such. Here’s why:

1. Lack of Local Insight

Zillow’s algorithm doesn’t walk through your home. It doesn’t know that you’ve renovated the kitchen, added a new deck, or replaced the roof. Likewise, it can’t account for a property being outdated or in disrepair. Local market conditions, neighborhood desirability, and even school districts can influence value—factors that a computer model can easily miss.

2. Inconsistent Data

Zestimates are only as accurate as the data they’re based on. If the public records or MLS data are outdated, incomplete, or inaccurate, the estimate will be too. Zillow may also pull data from homes that are not true comparables in terms of size, style, or location.

3. Large Margin of Error

According to Zillow itself, Zestimates have a nationwide median error rate of about 2-7% for on-market homes and even higher for off-market properties. On a $300,000 home, that could be a swing of up to $21,000—potentially more in areas with less data or high market volatility.

The Human Element: Why Real Estate Agents Still Matter

This is where a local real estate professional proves invaluable.

A qualified agent will:

• Conduct a Comparative Market Analysis (CMA) using recently sold, similar properties
• Account for upgrades, condition, location, and current buyer demand
• Provide context that algorithms simply can’t replicate

By working with someone who knows the area and the market, you get a more accurate, strategic valuation—whether you’re pricing to sell or planning a purchase.

Final Thoughts: Use Zestimates as a Starting Point, Not the Final Answer

Zillow is a helpful tool, but it shouldn’t be your only source of truth when it comes to determining a home’s value. Use it for a general sense of the market—but always consult a real estate professional for the most accurate and informed valuation of your property.

Thinking about buying or selling? I’m here to provide a custom valuation and local insight that Zillow just can’t match. Let’s talk!