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How Accurate Are Zillow’s Zestimates?

Here’s why Zillow should be a seller’s starting point, not their be-all and end-all.

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Zillow’s online home valuation tool, the Zestimate, is wildly popular. Just how accurate is it, though?

To answer that question, let’s first talk about what Zillow does right: number crunching. They’re great at processing all the active listings to create a picture of the overall market, and they’re great at assessing the trajectory of the market—is it going up, down, or plateauing? They also look at listings that have actually sold to curate a helpful record of area list prices and the length it takes for a type of property to sell.

Those things are what make Zillow a fantastic starting point for pricing your home. However, just because Zillow is good at processing data, that doesn’t mean they’ll be able to give you a truly accurate estimate of what you should list your home for right now or in the near future. Why is that?

“Only real estate agents know how your home will compete
in your unique, hyperlocal market.”

I mentioned above that Zillow looks at sold data, but they’re not looking at the actual price that a home sold for because the state of Texas, like so many other states, is a non-disclosure state; the contractually agreed-upon sales price is not reported, meaning Zillow has no access to the information that we real estate agents can see. Did a listing sell above asking price? Below asking price? Zillow’s Zestimate can’t factor in this key information.

Here’s another glaring issue: No one from Zillow is actually walking through your home. They can’t see its unique features or what marketable updates have been made to it. Understanding how your home compares to others in your hyperlocal market is critical, and only an agent who’s been in countless homes—even homes in your neighborhood—has that understanding.

So, if you’ve been wondering what your home is truly worth, be sure to give us a call. We at The Moats Team have awesome agents who are ready to tour your property to give you an accurate estimate of what it would sell for today, 30 days from now, or whenever you want to list it in the near future. We’re equipped to help you get the most money in the shortest amount of time. We look forward to hearing from you!

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