Why Your Zestimate Might Be Wrong — And What Your Home Is Really Worth

If you’ve ever typed your address into Zillow, chances are you've seen your “Zestimate” — a quick snapshot of what your home might be worth. While it's tempting to take that number as gospel, the truth is, Zestimates can be off by tens of thousands (sometimes hundreds of thousands) of dollars. So, what gives?

Let’s break down why your Zestimate might not be as accurate as you think — and how you can actually find out what your home is really worth.

1. Zestimates Use Algorithms, Not Appraisers

Zestimates are generated by an algorithm that pulls publicly available data and recent sales in your area. That includes things like square footage, number of bedrooms, lot size, and the last recorded sale price.

But here’s the catch: it’s all done by machine learning. No one from Zillow has actually walked through your house. They don’t know if you’ve added quartz countertops, a new roof, or a finished basement — or if your home still has shag carpet from the '70s.

2. It Doesn't Account for Local Nuance

The real estate market isn’t just data; it’s local. Really local. A home on one side of the street with ocean views might sell for significantly more than a nearly identical home across the road. School districts, neighborhood reputation, walkability, noise levels — these are things an algorithm can’t fully understand or weigh properly.

3. Outdated or Incorrect Public Data

Zillow pulls from public records, but those records aren’t always up to date or accurate. If your square footage was never updated after a renovation, or if a permit wasn’t filed properly, your Zestimate might be way off.

Plus, if your home hasn’t sold in a long time, Zillow’s algorithm has less information to work with — which often leads to a rougher estimate.

4. Zestimates Can Lag Behind the Market

In a fast-moving market, Zestimates can’t always keep up. If homes in your area are suddenly selling like hotcakes for well over asking, that shift might not be reflected in your Zestimate right away. And in slower markets, the opposite is true — it might look like your home is worth more than buyers are actually willing to pay right now.

So, What Is Your Home Really Worth?

To get a true understanding of your home’s market value, you need more than an algorithm — you need a human.

1. Comparative Market Analysis (CMA)

Real estate agents can perform a CMA, which compares your home to similar properties that have recently sold in your area. They factor in upgrades, condition, and current market trends — something algorithms can’t fully grasp.

2. Professional Appraisal

A licensed appraiser can give you a formal valuation based on an in-depth inspection. This is the most accurate snapshot of your home’s worth and is often required in home sales and refinances.

3. Talk to a Local Realtor

Local agents have boots-on-the-ground experience. They know the neighborhoods, what buyers are looking for, and what homes are actually selling for — not just what they’re listed at.

Final Thoughts

Zestimates are a helpful starting point — a ballpark figure. But if you’re serious about selling, refinancing, or just want to understand your home’s value, it’s important to look beyond the algorithm.

Because at the end of the day, your home isn’t just a number on a website — it’s a living, breathing space with features, charm, and a market value that only real people can fully appreciate.