The Truth About Zestimates—Are They Really Accurate?

We’ve all heard of Zillow’s “Zestimate”—the go-to for checking your home’s value with just a click. But how accurate is it really?

Here’s the gist:

What Zestimates Do Well: Zillow uses real-time MLS data to compare your home to others nearby, which works well in cookie-cutter neighborhoods where homes are similar in size and condition.

The Downside: Zestimates can’t account for things like recent upgrades, unique features, or the seller’s motivation. They don’t consider important factors like market conditions, buyer expectations, or your home’s quirks, which all play a big role in determining its true value.

Another important point to consider is the tension that Zestimates can create tension and cognitive dissonance between us buyers, sellers, and realtors. Buyers and sellers may feel empowered by the information presented in a Zestimate, thinking they have a complete picture of a home’s value. However, without understanding the limitations of this algorithm-driven estimate, it can lead to unrealistic expectations. This sometimes results in friction during negotiations, as parties may rely too heavily on Zestimates rather than the comprehensive market analysis a realtor provides.

While Zestimates are a useful tool, they shouldn’t replace the expertise of a trusted realtor. I always recommend getting a professional’s opinion to understand what your home is really worth.

That 10% difference can be tens of thousands of dollars when we are talking about homes and those tens of thousands of dollars can be the difference in your home sitting for weeks or not getting sold, to it selling in a current timely manner.

Now, let me share a bit of my own experience. Over the years, I’ve worked with countless sellers, from those in brand-new developments to others in older, more unique properties. I’ve also been involved in renovations and flips, which has given me a deep understanding of how different upgrades and changes impact a home’s value.

What Zillow’s algorithm can’t do is walk through your home, see the high-end finishes you’ve added, or understand the unique features that make your property stand out in the market.

For example, I’ve seen cases where a Zestimate undervalued a home by tens of thousands of dollars simply because it didn’t account for recent renovations. On the flip side, I’ve also seen Zestimates that were too high, giving sellers unrealistic expectations that led to their homes sitting on the market longer than necessary.

This is why working with a realtor, especially one with experience in renovations and flips like myself and my team, is crucial. We bring a level of insight that an algorithm just can’t match. We know what buyers are looking for and what features will add real value to your home. We can walk you through the entire process, from staging to pricing to negotiating the best deal.

At the end of the day, a Zestimate is a great starting point, but it’s just that—a starting point. For a truly accurate and actionable valuation, you need someone who knows the market, understands your home, and can provide personalized advice.

Curious to know more about your home’s value? Let’s chat. I’m here to help you navigate the market with confidence.

The Truth About Zestimates—Are They Really Accurate?