Many homeowners turn to Zillow when they want a quick idea of what their home might be worth. It is easy, it is fast, and it gives a number. But here is the truth that often gets overlooked: those online estimates are often wrong. In some cases, very wrong.
As a local real estate agent, I meet with homeowners all the time who are surprised when my suggested listing price does not match what they saw online. Sometimes the difference is small. Other times, it can be tens of thousands of dollars apart.
This is not because Zillow is trying to mislead anyone. It is simply because an algorithm can only go so far when it comes to something as personal and detailed as your home.
Let’s take a closer look at why online estimates often miss the mark:
Zillow doesn’t walk through your front door
Online estimates are created by algorithms. They pull public data like square footage, lot size, and recent nearby sales. What they can’t do is look at your home’s condition, style, upgrades, or layout. If you’ve spent the last few years updating your kitchen, adding a bathroom, or replacing the roof, Zillow doesn’t know.
On the flip side, if your home hasn’t been maintained or needs repairs, that won’t be reflected either.
Pricing a home involves more than numbers. Buyers respond to how a space feels, how well it’s been cared for, and how it compares to others on the market. An algorithm can’t replace that kind of judgment.
Location is more specific than a ZIP code
Zillow might compare your home to others across a broad area. But in reality, even within a single neighborhood values can shift block by block. A home that backs up to green space may be more valuable than one near a busy intersection, even if they’re the same size. A property that gets more natural light, has a better yard, or sits in a quieter part of the street can command a higher price.
These kinds of details matter to buyers. A computer can’t account for them. Local knowledge makes a difference.
Market timing changes everything
Real estate markets are always changing. Prices can shift with the seasons, interest rates, inventory levels, and buyer demand. Zillow’s estimate is based on past data, often several months old. That might work in a slow-moving market, but in an active one, it can be outdated fast.
When a real person evaluates a home, they look at what’s happening right now, homes that just sold, homes that didn’t sell, and what buyers are currently looking for. This gives a more accurate picture of what your home could realistically sell for today.
Lenders don’t rely on online estimates
Even if a buyer believes your home is worth what Zillow says, that won’t matter if the bank disagrees. Appraisers hired by lenders do not use online tools to determine value. They use current local sales, condition, upgrades, and location. If the appraisal comes in lower than the agreed price, the sale can fall apart or require renegotiation.
This is one reason why pricing a home based only on an online estimate can backfire. If it’s too high, you might scare off serious buyers. If it’s too low, you could leave money on the table.
Overpricing leads to missed opportunities
The most active interest a home gets is usually in the first few weeks it’s on the market. If the price is too high from the start, buyers will pass it over and the listing can become stale. That often leads to price reductions and longer days on market, which can make buyers wonder what’s wrong with the home.
Getting the price right from the beginning helps attract qualified buyers and increases your chances of multiple offers. That’s something no online tool can guarantee.
Kelli Eggen
