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How Accurate Is Zillow’s Zestimate? | What You Really Need to Know

Erika McNamara

How Accurate Is Zillow’s Zestimate

When you’re browsing homes on Zillow, one of the first things you probably notice is the Zestimate — that little number showing what Zillow thinks the house is worth. It’s helpful, right? But here’s the real question…

How accurate is Zillow’s Zestimate?
Can you trust it? Or should you take it with a grain of salt?

Let’s break it down in simple, everyday language so you know exactly what you’re looking at — and what to watch out for.

What Is a Zestimate, Anyway?

The Zestimate is Zillow’s estimate of a home’s market value. It’s based on:

Basically, Zillow runs all this info through an algorithm to guess what a house might sell for today.

It’s a cool tool, but here’s the thing — it’s not an official appraisal. And it’s not always right.

So… Is the Zestimate Really Accurate?

The short answer: Sometimes it’s close, and sometimes it’s way off.

Zillow has actually admitted this themselves. Here’s what we know:

That might not sound like much, but let’s do the math:

🏡 For a $500,000 home, a 7% difference is $35,000 — not exactly pocket change.

Why Can Zestimates Be Inaccurate?

There are a few reasons:

1. It Doesn’t Know What’s Inside the Home

Zillow’s algorithm can’t see:

So, a house that looks great on paper might be falling apart in real life — or vice versa.

2. It Doesn’t Account for Unique Features

If a home has something special (like custom finishes, a killer view, or high-end appliances), Zestimate may not give it full credit. The same goes for weird layouts or awkward designs — it just doesn’t know.

3. It Uses Nearby Sales — Which Could Be Misleading

Zillow relies heavily on comparable sales (“comps”) in the neighborhood. But:

So if the comp data is off, so is the Zestimate.

Can Sellers Rely on Zestimate to Price Their Home?

Honestly? No — not by itself.

While it’s a good starting point, a Zestimate doesn’t replace a CMA (Comparative Market Analysis) from a local real estate agent or a professional appraisal. Those take into account actual market conditions, the home’s condition, and up-to-date data.

So if you’re planning to sell, use the Zestimate to get a general idea — but definitely bring in a pro before setting your price.

Can Buyers Trust Zestimate to Know If a Home Is Fairly Priced?

Again — not completely. If you’re buying a home, it’s smart to:

Zestimate is just one tool in the toolbox — not the final word.

Are Zestimates More Accurate in Some Areas?

Yes, absolutely. In big cities where there are lots of recent sales and lots of data, Zestimates tend to be more accurate. That includes places like:

But in rural areas or neighborhoods with very few recent sales, the Zestimate is often less reliable because the algorithm doesn’t have enough data to work with.

Pros and Cons of the Zestimate

✅ Pros:

❌ Cons:

Final Takeaway: Use the Zestimate — But Don’t Rely on It 100%

Zillow’s Zestimate is a helpful tool, but it’s just that — a tool. It’s not gospel.

If you’re selling a home, get a professional appraisal or talk to an agent.
If you’re buying a home, do your research and compare listings carefully.

Bottom line?

💬 Zestimate is a good place to start — but not a good place to stop.

FAQs

1. What is a Zestimate?

A Zestimate is Zillow’s estimate of a home’s current market value. It’s based on public records, recent sales, user-submitted data, and computer models. Zillow created it to give buyers and sellers a quick idea of what a property might be worth — but it’s not an official appraisal.

2. How accurate is Zillow’s Zestimate overall?

Zillow reports that the Zestimate is within 2% of the sale price for homes on the market. However, for homes not currently for sale, it can be off by as much as 7% or more. That means a home valued at $500,000 could be off by $35,000. So, it’s useful, but not always spot-on.

3. Why does Zillow’s Zestimate change over time?

The Zestimate updates when Zillow receives new data, like:

So, if a lot of homes sell in your area or there are new updates to your home’s info, your Zestimate might go up or down.

4. Can I trust the Zestimate when buying a house?

Zestimate can be a helpful starting point, but you shouldn’t base your offer solely on it. Instead, use it alongside:

5. Can I trust the Zestimate when selling my home?

It’s a decent ballpark figure, but it doesn’t consider upgrades, renovations, or the home’s current condition. If you want to price your home right, ask a real estate agent to do a CMA and consider hiring an appraiser.

6. Why is the Zestimate on my home lower than I expected?

There could be several reasons:

You can update your home’s details on Zillow to help improve accuracy.

7. Why is the Zestimate higher than the asking price?

This can happen if:

Always tour the home and review it carefully with your agent.

8. How does Zillow calculate the Zestimate?

Zillow uses a mix of:

It all goes through their AI-based algorithm to generate an estimate.

9. Does the Zestimate include renovations or upgrades?

Not unless those renovations are officially recorded in public records or manually added by the homeowner on Zillow. If you’ve remodeled your kitchen or added a room, you can update those details yourself to help improve your Zestimate.

10. Is Zestimate the same as an appraisal?

Nope — they’re very different. An appraisal is done by a licensed professional who visits the home, compares it to similar properties, and gives a detailed report. A Zestimate is automated and doesn’t include an in-person inspection.

11. Does Zillow have access to the MLS?

In some markets, yes. Where they do, the Zestimate tends to be more accurate. But in areas without MLS access, they rely more on public data, which can be limited or outdated.

12. Can I challenge my Zestimate?

You can’t directly “challenge” it like a credit score, but you can:

This may help the algorithm recalculate more precisely.

13. Is the Zestimate better for homes that are listed for sale?

Yes, because Zillow gets updated info from the listing and uses recent comps. Zestimate accuracy is much higher for on-market homes compared to off-market ones.

14. Why is the Zestimate so different from other estimate sites like Redfin or Realtor.com?

Each platform uses its own algorithm, data sources, and models, which means estimates often vary. It’s always smart to compare a few different sources and talk to a local real estate expert.

15. Can a Zestimate affect the sale price of my home?

Not directly, but it can influence buyer perception. If the Zestimate is much lower than your asking price, some buyers may question the value. That’s why it’s important to make sure your home info is updated and accurate on Zillow.

16. How often is the Zestimate updated?

Zillow says Zestimates are updated multiple times per week using new data. However, changes only show if there’s new activity or data, like a sale nearby, listing updates, or a market shift.

17. Do Zestimates work in all parts of the U.S.?

Zestimates are more accurate in areas with lots of data, like big cities or suburbs. In rural areas or places with fewer home sales, the data can be limited, making the estimate less reliable.

18. Does the Zestimate include land value?

Yes, it generally includes both land and structure value, based on what similar properties nearby are selling for. But again, it’s an estimate — it won’t break down the value of land vs. home like an appraisal would.

19. Can buyers negotiate using the Zestimate?

They can try, but sellers don’t have to honor it. A buyer might say, “Zillow says this home is worth less,” but a seller can counter with their own comps or appraisal. It’s just one negotiation tool.

20. Is there a way to remove my Zestimate from Zillow?

Unfortunately, no. Zillow doesn’t allow you to remove your home’s Zestimate completely. But you can claim your home and update the information, which may lead to a more accurate number.

21. Can real estate agents change the Zestimate?

No, agents can’t change the Zestimate directly. But they can help you update your listing or property info on Zillow, which might influence the estimate if Zillow picks up the changes.

22. Do Zestimates affect mortgage approvals?

Not at all. Lenders use professional appraisals, not online estimates like Zillow. Zestimates have no role in mortgage lending decisions.

23. Are Zestimates used for property taxes?

No. Property taxes are based on county tax assessments, not Zillow estimates. That said, if the tax assessor uses inaccurate info, you can challenge your property tax — but Zestimate won’t help or hurt that directly.

24. Why is there no Zestimate for my home?

This usually happens if:

Try claiming your home and updating the info — this might prompt Zillow to generate one.

25. How can I improve my home’s Zestimate?

Update your home details on Zillow. Add:

The more accurate the info, the more likely Zillow will increase the Zestimate if it matches local market conditions.

26. What is Zestimate forecast or Zestimate range?

Zillow provides a Zestimate range to show how much the estimate could vary. For example, if the Zestimate is $450,000 with a range of $430K–$470K, that means the actual value could fall anywhere in that window.

27. Can Zestimates be manipulated or hacked?

No. Zillow’s algorithm is not open to manipulation. While homeowners can update their info, the algorithm decides how that info impacts the Zestimate — not the user.

28. Do buyers take Zestimates seriously?

Many do, especially first-time buyers who aren’t working with an agent yet. That’s why it’s important for sellers to understand their Zestimate and be ready to explain it if it doesn’t match their listing price.

29. Should I worry if my Zestimate is dropping?

Not necessarily. It could reflect:

Keep an eye on the local real estate market and consider speaking with an agent if you’re planning to sell.

30. Is Zillow’s Zestimate getting more accurate over time?

Yes — Zillow is constantly updating its algorithm and using more advanced data sources to improve Zestimate accuracy. But while it’s getting better, it still can’t match the insight of a real estate professional or licensed appraiser.

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