Zillow, or Should I Say Zestimate?

Oh, Zillow. Or should I call you by your alter ego, Zestimate? Some days, you’re a helpful tool, but other days, you make my life...complicated.

Zillow launched in 2006 with a mission to provide unbiased information about home values and other real estate insights. It was a game-changer, giving the public access to data that once seemed locked behind closed doors. But then, there’s the Zestimate—Zillow's algorithm-driven estimate of a home’s value.

Now, don't get me wrong. The Zestimate can sometimes be a helpful starting point, but many times, it misses the mark. Wildly. I've seen homes valued far higher or lower than their actual market worth. Let me share a personal example.

I had my own property appraised a while back. Before the appraisal, the Zestimate claimed the property was worth $168,500. But based on local comparable sales (between $85,000–$100,000), I knew this number was way off. I listed the property for $104,000 and ultimately sold it for $99,900.

And here’s where it gets even more interesting: once the property was listed, the Zestimate magically adjusted to align with my list price. Coincidence? Maybe. But it sure makes you wonder how “unbiased” that Zestimate really is.

For many buyers and sellers, the Zestimate becomes a false starting point that may not reflect reality. While it’s a nifty tool, it’s essential to remember that it’s just an algorithm, not a crystal ball. Trusting professionals who know the market will always be the better move.

So, next time you’re tempted to rely solely on that Zestimate, take it with a grain of salt. Or maybe a whole shaker.

What’s your experience with Zillow or the Zestimate? Let's chat!

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