Wondering if your Zestimate is spot on or way off? You’re not alone. A lot of homeowners check Zillow and take that number as gospel. But how accurate is it, really? When you’re thinking about selling, guessing wrong on your home’s value can cost you time and money.
In this guide, I’ll break down how Zestimates work, where they shine, and where they totally miss the mark. We’ll also talk about better ways to figure out what your home’s actually worth, without relying on hope or hearsay.
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Zestimate in 2025
- What Is a Zestimate & Why Do Homeowners Trust It?
- How Zillow Calculates Its Zestimate
- Are Zillow Estimates Accurate? Here’s What the Data Says
- When a Zestimate Can Be Way Off
- Better Ways to Value Your Home Before Selling
- Reilly’s Two Cents: What I’ve Seen Selling Homes
- More Than an Estimate
- Frequently Asked Questions
What Is a Zestimate & Why Do Homeowners Trust It?
A Zestimate is Zillow’s estimated market value for a home. It’s not an appraisal, it’s an automated guess based on public records, recent sales, and details like square footage, number of bedrooms, and lot size. Zillow’s algorithm pulls all that info together to give you a ballpark figure of what your home might sell for today.
People trust it because it’s quick, free, and backed by a big brand. But the truth is, a Zestimate doesn’t know your street, your upgrades, or your curb appeal. It’s a decent starting point, but not something to hang your hat on.
How Zillow Calculates Its Zestimate
Zillow builds its Zestimate using a mix of math, machine learning, and massive amounts of data. At the core, it compares your home to others in your area, called comparable sales or comps, that have recently sold. These comps help set a baseline price.
It pulls from public records, like tax assessments and past sales, along with details from the MLS (Multiple Listing Service), such as:
- Square footage – how big your home is
- Number of beds and baths – more rooms usually mean higher value
- Lot size – bigger lots often add more value
- Location – what homes nearby are selling for
- Home type – single-family, condo, etc.
All of this goes into a proprietary algorithm, Zillow’s own formula that weighs and adjusts these details to come up with your home’s estimated value. It updates as new data comes in, like a nearby home selling or your home being listed.
But keep in mind: it’s still automated. It can’t account for things it can’t see, like a stunning view, a messy neighbor, or a freshly remodeled kitchen.
Are Zillow Estimates Accurate? Here’s What the Data Says
Zestimates can be surprisingly close, or way off. Zillow says their median error rate is about 2.4% for homes that are listed for sale. That means half of those Zestimates are within 2.4% of the final sale price. But for homes that aren’t on the market, the error jumps to around 7%. That’s a pretty big gap.
Accuracy also depends on where you live. In busy urban markets with lots of recent sales, the data is fresh, and the Zestimate tends to be more reliable. But in rural areas or places where homes don’t sell often, the estimates can swing wildly.
Bottom line? Zestimates are more accurate when there’s more recent, local data to pull from. But even then, they’re still just a guess, one that doesn’t know your home like a real person would.
When a Zestimate Can Be Way Off
Zestimates can miss the mark when the data they’re using is old, wrong, or incomplete. For example, if your home has had major upgrades, like a new kitchen or finished basement, but that info isn’t in public records, the Zestimate won’t reflect it. Same goes for repairs you haven’t made. If the home next door sold in rough shape, your estimate might get pulled down by that sale.
Homes that haven’t been listed in a while are especially tricky. Without fresh market data, the algorithm has to guess based on stale info. Even the timing can throw things off, your home might be worth more in spring than in winter, but the Zestimate might not catch that fast enough.
And then there’s emotion. A homeowner might think their home is worth more because of memories or sweat equity, but Zillow doesn’t see that. It just sees numbers.
Better Ways to Value Your Home Before Selling
If you really want to know what your home is worth, don’t stop at the Zestimate. There are more accurate ways to get the full picture.
Start with a comparative market analysis (CMA) from a real estate agent. This looks at homes like yours that have sold recently in your area. Agents use local knowledge and market trends that algorithms can’t always catch.
You can also get a professional appraisal. Appraisers are licensed pros who physically inspect your home, note its condition, and factor in upgrades or repairs. It’s not free, but it gives you a solid, unbiased number.
And if you want speed and certainty, consider a cash offer from iBuyer.com. Our offers are based on real market data and property details, not guesswork. You’ll know where you stand without the back-and-forth of listing.
Reilly’s Two Cents: What I’ve Seen Selling Homes
I’ve worked with a lot of sellers who felt stuck because of their Zestimate. Sometimes it was way higher than what the market could support. Other times, it was too low, and they were worried they’d lose money. Either way, it added stress they didn’t need.
Here’s what I always tell people: use the Zestimate as a starting point, not the final word. It’s a tool, not a verdict.
If you’re unsure about your home’s value, here are a few things you can do:
- Get a second opinion. Talk to a local agent or get an appraisal.
- Look at real comps. What did similar homes nearby actually sell for?
- Watch how the number changes. If your home goes on the market and your Zestimate shifts, take note.
- Know what Zillow can’t see. Upgrades, damage, location quirks, they all matter more than an algorithm thinks.
At the end of the day, the best price is what a buyer will actually pay, and the Zestimate isn’t always in sync with that.
More Than an Estimate
Zestimates are helpful, but they’re not the whole story. They’re quick, automated guesses based on whatever data Zillow can get its hands on. Sometimes they’re close, sometimes they’re way off, and they rarely know the full picture.
To deepen your understanding of Zillow’s home-buying program and how it leverages its Zestimate, see our article on Zillow Offers & Zestimate.
If you’re thinking about selling, don’t let a Zestimate be your only guide. Use it as a baseline, then back it up with insight from a real estate agent, an appraisal, or a data-backed cash offer.
Want something more accurate than a guess? Get your no-pressure cash offer from iBuyer.com and see what your home’s really worth.
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Frequently Asked Questions
Redfin often claims slightly better accuracy for listed homes, but both use similar data sources. Accuracy can vary a lot depending on your location and how recently nearby homes have sold.
You can update your home facts on Zillow, like square footage or number of bedrooms, and that might adjust your Zestimate. But you can’t directly set the value yourself.
Zillow doesn’t walk through your home or know local trends. Agents see things an algorithm can’t, like upgrades, wear and tear, or market shifts.
Not directly, but it can shape buyer expectations. If your Zestimate is far off from your asking price, it might raise questions, so it’s smart to be ready with solid data.
Work with a local real estate agent, get a professional appraisal, or request a cash offer from a trusted company like iBuyer.com. These methods consider your home’s unique features and current market conditions.
Reilly Dzurick is a seasoned real estate agent at Get Land Florida, bringing over six years of industry experience to the vibrant Vero Beach market. She is known for her deep understanding of local real estate trends and her dedication to helping clients find their dream properties. Reilly’s journey in real estate is complemented by her academic background in Public Relations, Advertising, and Applied Communication from the University of North Florida. This unique combination of skills has enabled her to seamlessly blend traditional real estate practices with cutting-edge marketing strategies, ensuring her clients’ properties gain maximum visibility and sell quickly.
Reilly’s career began with a strong foundation in social media marketing and brand communications. These skills have proven invaluable in her real estate practice, allowing her to offer innovative marketing solutions that set her apart in the industry. Her exceptional ability to understand and meet clients’ needs has earned her a reputation for providing a smooth and satisfying transaction process. Reilly’s commitment to client satisfaction and her innovative approach have garnered her a loyal client base and numerous referrals, underscoring her success and dedication in the field.
Beyond her professional achievements, Reilly is passionate about the Vero Beach community. She enjoys helping newcomers discover the charm of this beautiful area and find their perfect home.
Outside of work, she loves exploring Florida’s stunning landscapes and spending quality time with her family. Reilly Dzurick’s combination of expertise, marketing savvy, and personal touch makes her a standout real estate agent in Vero Beach, Florida.
