top of page

Sweeney Sells Real Estate Blog

Search

The Truth About Zillow “Zestimates”

If you’ve looked up your home or any home on Zillow, you’ve probably seen the Zestimate®: Zillow’s estimated market value for a property. It’s a tempting tool, offering a quick number that feels official. But is it accurate? Can it replace a professional valuation?


Let’s break down the truth about Zestimates what they are, how they’re calculated, and when to trust them (and when not to).


🔍 What Exactly Is a Zestimate?

A Zestimate® is Zillow’s estimate of a home’s market value, generated by a proprietary algorithm that uses:

  • Public data (like tax records and past sales)

  • MLS data (when available)

  • Comparable home sales nearby

  • Features of the home (square footage, beds/baths, lot size, etc.)


What it’s not: It’s not a professional appraisal. It doesn’t involve an actual person evaluating your home’s condition, upgrades, or unique features. It's a starting point—not the final word.


⚖️ How Accurate Are Zestimates?

Zillow claims a nationwide median error rate of around 2.4% for on-market homes and 7.5% for off-market homes (as of 2024). But those numbers vary wildly depending on your local market.


Here’s why accuracy may vary:

  • No algorithm can see inside your home. It doesn't know you just remodeled the kitchen or added a home office.

  • Outdated data: If public records aren’t updated, your Zestimate might be based on incorrect square footage or bedroom count.

  • Limited MLS access: In some areas, Zillow doesn’t have full access to the Multiple Listing Service, which means its comparables may be off.


✅ More accurate if: The home is listed, the market is active, and local data is current.🚫 Less accurate if: The home is off-market, in a rural area, or has unique features.


🧩 Factors Zestimates Can Miss

Even if the math is good, Zestimates can’t account for:

  • Curb appeal and staging

  • Upgrades (remodeled bathrooms, energy-efficient windows, etc.)

  • Deferred maintenance (like a roof that needs replacing)

  • Neighborhood feel (quiet cul-de-sac vs. busy street)

  • Recent home improvements that haven’t hit the public record yet


📉 Can Zestimates Impact Your Sale or Purchase?

They absolutely can—but not always for the better.

Sellers:

  • Buyers may anchor to a Zestimate, especially if it’s lower than your asking price.

  • If it’s too high, it can give sellers false expectations and lead to overpricing.

Buyers:

  • Relying too heavily on a Zestimate can lead to missed opportunities, especially in competitive markets.

  • It can mislead first-time buyers into thinking a home is overpriced or underpriced without a full picture.


🏡 So... Should You Trust a Zestimate?

The short answer: Use it as a rough guide—not the gospel truth.

Zestimates are useful for:

✅ Getting a ballpark figure of a home’s value

✅ Starting a conversation with your agent

✅ Watching broad market trends


They’re not a substitute for:

❌ A Comparative Market Analysis (CMA) from a local real estate expert

❌ A professional appraisal (especially for lenders or pricing high-end homes)

❌ An in-person property evaluation


💡 What’s More Accurate Than a Zestimate?

To get a true understanding of your home’s value:

  • Request a CMA from a local real estate professional.

  • Compare recent, similar sales (same neighborhood, size, condition).

  • Consider the local market trajectory—are prices trending up or down?

  • Factor in your home’s condition, upgrades, and timing of the sale.


✅ Final Thoughts

Zestimates are a helpful starting point, but they’re not the finish line. Real estate pricing is both a science and an art, blending data with local expertise and personal insight.


Before making a major decision about buying or selling, consult a trusted real estate professional who can provide a nuanced, accurate evaluation tailored to your property, not just a machine-generated guess.


Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


"I appreciate your business & referrals!"


Hours Mon-Fri 9am-6pm

Sat By Appointment

Sun Off


Schedule a call or zoom with us here! 👇




 
 
 

Comments

bottom of page