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Most homeowners check their Zestimate before selling. Who wouldn’t want to when it’s quick, easy, and feels official? And after working as a realtor for nearly 20 years, I’ll admit, I do it too. It’s fast, it’s free, and it’s AI-powered. But even in 2025, AI pricing tools still miss important details that can impact your home’s true value.
How the Zillow algorithm works. Zillow doesn’t reveal its full formula, but we know the Zestimate comes from an automated model that pulls data from public records, MLS listings, tax rolls, and even off-market sales. It sounds thorough, but it still leaves out critical details.
What Zillow misses. The algorithm can’t see unrecorded updates, like a remodeled kitchen, new landscaping, or neighborhood changes. It also can’t judge curb appeal, quality of finishes, natural light, floor plans, or where a lot sits in the neighborhood. A realtor factors those in immediately.
Zillow lags behind the market. Timing is another issue. Zillow’s data trails the market. Even Zillow admits its numbers are off by about 2.4% for listed homes and 6.9% for off-market ones. On a $1 million house, that can mean a $70,000 difference.
Should you stop looking at your Zestimate? No. Think of it like a weather forecast, useful for a general idea, but not the full picture. Realtors bring context by looking at current comps, buyer demand, and upgrades.
Buyers also pay attention to the Zestimate, so it matters. When I meet with sellers, I compare Zillow’s number to my own analysis. Whether I price higher or lower, I back it up with data.
When Zillow gets it right. In uniform neighborhoods, like subdivisions built at the same time, Zestimates can be reasonably accurate. But in a shifting market, they always fall behind. Zillow looks backward at sales, while real estate moves forward fast.
How a realtor gives you the real picture. Don’t rely only on the Zestimate. Buyers may assume they can’t afford a neighborhood, but a realtor may show otherwise. Sellers need a professional valuation to price right and maximize returns.
Zillow is a good starting point, but not the final word. If you’re thinking about buying or selling, your best move is working with a realtor who knows the market inside and out. That’s the difference between a rough estimate and an accurate valuation.
If you’d like to talk about your home’s value, email me anytime at [email protected]. I’d be glad to help and set up a consultation.
