Why That Zestimate Is Probably Wrong (And What to Do About It)

If you’ve ever pulled up your home on Zillow, chances are you’ve seen that little number at the top of the page — the Zestimate. And let’s be honest… you probably either thought:

“Wow, my house is worth THAT much?!” 🙌
or
“Wait a second… there’s no way my home is worth THAT little.” 😅

Either way, here’s the truth: your Zestimate is probably wrong. And today, I’m going to break down why that happens, what it really means for you as a homeowner (or future buyer), and the smart steps you should take next.

What Is a Zestimate, Really?

Zillow’s Zestimate is essentially an automated home value estimate. It uses an algorithm that pulls data from tax records, past sales, neighborhood stats, and comparable properties in the area.

Sounds high-tech, right? Sure. But here’s the catch: algorithms can’t see inside your home. They don’t know about the custom kitchen you remodeled last year, the brand-new roof, or that gorgeous backyard oasis you built. They also can’t account for the “wow” factor buyers feel when they walk through the door.

Why Your Zestimate Is Probably Wrong

Here are the most common reasons Zestimates miss the mark:

1. Outdated Data – Zillow might be pulling from old tax records or missing recent updates you’ve made.

2. Neighborhood Nuances – Not all “comparable homes” are truly comparable. A home across the street may not reflect your home’s upgrades or layout.

3. Market Shifts – Real estate markets change fast. Algorithms can’t always keep up with rising (or cooling) trends.

4. Unique Features – Pools, views, acreage, or luxury finishes all affect value — but Zillow’s formula doesn’t always weigh them correctly.

The result? Your Zestimate could be off by tens of thousands of dollars. In some cases, even more.

Why This Matters (Especially If You’re Selling)

If you’re thinking about selling your home, relying on your Zestimate could lead to:

• Overpricing → Scaring away qualified buyers.

• Underpricing → Leaving serious money on the table.

• False expectations → Making it harder to negotiate confidently.

Bottom line: Zestimates are fun to look at, but they’re not what you should base a life-changing financial decision on.

What to Do Instead

So, if you can’t fully trust the Zestimate, what should you do? Here’s your game plan:

1. Get a Comparative Market Analysis (CMA) – A professional Realtor (👋 that’s me) can give you a detailed breakdown of your home’s value based on actual, recent sales in your neighborhood.

2. Schedule a Walkthrough – Unlike Zillow, I’ll step foot in your home and factor in all the upgrades, condition, and special features.

3. Track Market Trends – Your home value doesn’t exist in a vacuum. A local expert will know if homes are moving fast, sitting longer, or fetching multiple offers.

The Fun Part: Testing the Zestimate

Here’s an idea: pull up your Zestimate right now. Got it? Now imagine if that number was 10% too low. How would that change your selling strategy? Or if it was 10% too high, would buyers still jump on it?

This little exercise shows you why relying on a Zestimate is risky business.

Final Thoughts

Zillow is a great tool for browsing homes, getting inspired, and even seeing rough market trends. But when it comes to knowing your true home value, nothing replaces the insight of a real person who knows your market inside and out.

👉 Ready to find out what your home is really worth? Let’s connect. I’ll run a free, no-obligation market analysis that’s way more accurate (and useful) than an algorithm ever could be.