Zillow Zestimates: How Close Are They Really?

By Nathan King

Nathan King, a native of Fresno, has spent his entire life immersed in the vibrant Central Valley community. Nathan loves spending time with his family and helping his clients achieve their real estate goals.

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If you’re among the 80% of homebuyers or current homeowners who’ve spent hours on Zillow dreaming of your next home or evaluating your current home’s worth, you’ve likely encountered Zillow’s property estimates. But how reliable are these figures?

Zillow estimates, commonly referred to as “Zestimates,” are generated through computer algorithms that analyze public data. While they can sometimes be strikingly accurate—particularly for newer, “cookie-cutter” homes in high-density areas—it’s crucial to understand that these numbers are just estimates. In some cases, Zestimates may deviate by plus or minus 10%. On a $500,000 property, that’s a potential $50,000 discrepancy.

The primary takeaway here is the importance of skepticism towards these automated valuations. Algorithms lack the human ability to visually assess a property’s nuances or verify the accuracy of underlying data. Zillow pulls property information from tax records, which, especially for older homes, can be notably inaccurate. For instance, a discrepancy in the recorded number of bedrooms or bathrooms, or the home’s square footage, can significantly affect the estimate.

To counter these inaccuracies, a professional walkthrough is essential. Real estate experts compare on-site observations with tax records, and if discrepancies are found, a professional appraiser may be enlisted to measure the property accurately. This process is critical for ensuring a precise valuation, especially when dealing with your most significant asset.

For those considering selling their homes, it’s imperative to consult a trusted real estate professional. An expert’s valuation is grounded in up-to-date property data, market conditions, recent sales of comparable properties, and a detailed comparison of amenities—factors an algorithm simply cannot replicate with high fidelity.

While Zillow provides a helpful starting point for understanding potential property values, its estimates should not be the sole basis for any significant real estate decision. Whether buying or selling, partnering with a seasoned real estate professional ensures a valuation that accurately reflects your property’s worth and the current market dynamics. If you’re planning a move this year, reaching out for professional advice can lay the foundation for a successful transaction. So, reach out today by phone or email so we can get you pointed in the right direction.