Let’s talk about something I see all the time: homeowners trusting Zillow’s "Zestimate" more than a professional evaluation. Don’t get me wrong—Zillow is a great tool for general information, but when it comes to accurately pricing your home, it has its limits. And those limits could cost you.
Let me share a quick story. I had a client who inherited a property and was ready to sell. She was excited because Zillow told her the property was worth over $225,000. But after walking through the home, running a proper comparative market analysis (CMA), and accounting for the home’s location in an unincorporated area, I advised her the realistic selling price would be between $165,000 and $185,000. We listed the home at $189,900, and it ultimately sold for $180,000—right within the range I predicted. Yet, she couldn’t get the $225,000 Zillow estimate out of her head.
Here’s the thing: Zillow’s algorithm didn’t know her home was in an unincorporated area. It didn’t know the home’s condition or the nuances of her neighborhood. Zillow didn’t step inside to see the outdated features or the lack of recent updates. And it certainly didn’t compare her home to other properties that had the same unique factors.
Why Zillow Can Miss the Mark
Zillow uses an automated valuation model (AVM) that relies on publicly available data—think tax records, recent sales, and market trends. While this sounds great in theory, there are a few key limitations:
It’s Just an Algorithm. Zillow has never walked through your home. It doesn’t know about the upgrades you’ve made, the condition of the property, or the factors that make your home unique (or not comparable to others).
It Can’t Adjust for Nuances. Location matters. Being in an unincorporated area, backing up to a busy road, or even being in a subdivision with lower HOA fees—these are things that an algorithm can’t account for, but a real estate professional will.
It’s Based on Incomplete Data. Sometimes, public records are outdated or incorrect. If the square footage, lot size, or other details about your home aren’t accurate in public records, Zillow’s estimate will reflect that.
Pricing It Right: Why It Matters
In the case of my client, we listed her property at $189,900 and had 19 showings over 33 days on the market. During that time, we received two offers: one lowball and one that was accepted. By pricing the home correctly, we attracted serious buyers who recognized its value and got the deal done for $180,000.
Had we listed at the inflated $225,000 Zillow suggested, the property would likely have lingered on the market much longer. Overpriced homes can:
Miss the Most Active Buyers: Buyers search within price ranges. If your home is overpriced, it won’t even appear in searches where serious buyers are looking.
Lose Valuable Market Time: The longer a home sits unsold, the less desirable it appears to buyers.
Require Price Cuts: Multiple reductions make buyers question if something’s wrong with the property.
What You Should Do Instead
If you’re thinking about selling your home, here’s my advice: take Zillow’s Zestimate with a grain of salt and talk to a professional. A knowledgeable real estate agent (like me!) will:
Walk through your home to assess its condition and unique features.
Run a detailed CMA that compares your home to similar properties recently sold in your area.
Consider local market trends, neighborhood nuances, and factors that no algorithm could ever understand.
Trust the Process
I get it. Seeing a high Zestimate can be exciting, but it’s my job to set realistic expectations and get you the best possible outcome. In the case of my client, her property sold for $180,000—a fair market price that attracted serious buyers and got the deal done quickly. That’s the kind of success you want when selling your home.
So, the next time you’re tempted to trust an online estimate over a professional, remember: Zillow hasn’t been inside your home. I have. Zillow doesn’t know your local market. I do. And at the end of the day, my priority is making sure you have the most accurate information to help you achieve your goals.
Curious about what your home is really worth? Let’s connect and start the conversation. You might just be surprised at how much a personalized approach can make a difference.
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