What You Need to Know about Zillow Zestimates

By Erin Catron

I am a multifaceted entrepreneur and real estate leader dedicated to making a meaningful impact.

In today’s fast-paced real estate market, homeowners and buyers alike often turn to online tools for quick insights into property values. One popular tool is Zillow’s Zestimate, a feature that provides an estimated market value for homes. If you’re not familiar with what a Zestimate is, it’s basically what Zillow provides as the value of your home. When you go onto Zillow and type in the address of your home, it will give you some information about what Zillow thinks your home is worth.

This is a fantastic tool, and we actually love Zillow in our office. We are the top Zillow team in the state of Oklahoma, so we value our partnership with Zillow. However, Zillow is not always accurate, and it’s really important to understand what this tool can be used for and why. Here are three key points to consider:

1. Know the Tool’s Limitations. Zillow can only tell you what data says. Essentially, how Zillow’s Zestimate works is by grabbing all of the data from homes similar to yours in nearby areas and generating a number through their computer algorithms. While useful, this method can have a margin of error ranging from about 2% to 7%. Depending on your home’s price point, this can mean thousands of dollars off in either direction.

2. Consider Buyer Perception. We like to tell our sellers that Zillow is definitely a tool buyers are looking at. If you believe your home is worth more than what Zillow indicates, be aware that buyers might see a lower Zestimate. This can impact buyer perception and potentially affect your asking price. Therefore, it is crucial to ensure your marketing aligns with what buyers might see on Zillow.

3. Get a Professional Valuation. Zillow cannot account for certain aspects of your home. They don’t know about any improvements you’ve made, the exact condition of your home, or specific features that set it apart from others. That’s why you need a great agent who can come in, evaluate your home in person, and provide a true value based on a comprehensive understanding. This evaluation can include insights that an appraiser might consider.

Understanding your home’s true worth can make all the difference in your real estate journey. If you need assistance or want more information, don’t hesitate to reach out to our team. Contact me today at erin@tulsasharkbroker.com to see how I can help. Empower yourself with the knowledge and expertise you deserve—let’s make your home valuation precise and reliable together.