Are Zestimates Useless?

If you’ve ever looked up your home on Zillow, you’ve probably seen the Zestimate — that big number that promises to tell you what your house is worth. And if you’re like most people, you might wonder: How accurate is that, really?

The truth is, Zestimates aren’t useless. In fact, after running multiple comparative market analyses each week, I’ve found that roughly eight out of ten Zestimates are within 5% of true market value. That’s pretty impressive, considering the complexity of real estate pricing. Zillow has an enormous pool of data, and their models have steadily improved over the years.

But here’s the catch: Zestimates are only part of the picture. They don’t always account for the nuances that make your home unique.

For example:

• Luxury homes can confuse algorithms because they often have custom features that aren’t easily compared.

• Older neighborhoods can be tricky — some homes are fully remodeled, others are not, and Zestimates can’t always differentiate.

• Developing areas with fewer recent sales can throw off the calculations.

• Lot sizes and upgrades matter. If your property spans a larger lot or you’ve made significant improvements, a Zestimate won’t reflect that.

Think of a Zestimate like a general health check. It can give you a quick sense of your home’s value, but it’s not a precise reading of your property’s worth. For a truly accurate picture — what your home would realistically sell for today — you need a proper comparative market analysis from a real estate professional.

Zestimates are helpful, but context is everything. Don’t rely on a single number; look at the bigger picture.

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