Zillow Zestimates: What They Are and Why They Don’t Tell the Whole Story

If you’ve ever searched for homes online, chances are you’ve come across a Zestimate®. Zillow created Zestimates are an automated way to provide an estimated market value for homes based on publicly available data, recent sales, tax assessments, and user-submitted information. They can be a useful starting point if you’re curious about your home’s value or looking into a neighborhood—but they are far from the full picture.

While Zestimates may appear precise, they are ultimately computer-generated guesses. Real estate markets are influenced by many factors that algorithms simply can’t capture. For example, Zillow doesn’t know that you just remodeled your kitchen with high-end finishes, that your home backs up to a quiet preserve instead of a busy road, or that your neighborhood is in high demand because of a newly built school nearby. On the flip side, Zestimates may also miss deferred maintenance, outdated features, or location-specific nuances that affect buyer demand.

Because of these limitations, Zillow even acknowledges that their Zestimates are not official appraisals or guaranteed values. In fact, depending on your market, they can be off by thousands—or even tens of thousands—of dollars.

That’s where working with a local real estate professional makes all the difference. Agents have first-hand knowledge of current market conditions, buyer preferences, and neighborhood trends. They take into account the unique features and upgrades of your home and compare it against similar homes that have actually sold in your area. By combining real-time data with local expertise, an agent can provide you with a far more accurate and tailored home valuation than any algorithm ever could.

So while Zestimates can be a fun tool to browse, if you’re serious about knowing what your home is truly worth, the best next step is to consult with a trusted local real estate agent. Not only will you get a clearer picture of your home’s value, but you’ll also have the guidance you need to make informed decisions about selling, buying, or investing. If you’ve been considering selling your home—or are simply curious about its current market value—our team would be happy to help. We offer complimentary, personalized home valuations that go beyond online estimates and give you a clearer picture of what your property could truly sell for.

If you’d like to dig deeper into how Zestimates are calculated, this article from House Beautiful offers a helpful breakdown.