How Do Zillow’s Zestimates Really Work?

    How does Zillow work, and is it a reliable resource? Here’s what you should know.

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    Zillow is the whale of online home searches—87% of people searching for homes online go to Zillow.com.

    The website has a cool little widget called a Zestimate which allows you to plug in your address and receive an estimate of your home’s value. My own website, www.TheHaighGroup.com, has a similar feature, as well as a list of available properties.

    Zillow doesn’t know how your home differs from the homes it’s comparing yours to.

    How does the Zestimate differ from my process? The Zestimate is an algorithm that links together information from the MLS and public record. It doesn’t have the capacity for critical thinking; Zillow doesn’t know how your home differs from the homes it’s comparing yours to.

    At the end of the day, a Zestimate doesn’t recognize the unique features that your home possesses which might affect its value.

    Further to that, not all the listings that are shown on Zillow are available anyway. Many have already been put under contract or sold. However, Zillow does sell information to real estate agents. This means that the more listings they show on their sites, the more business agents will get in that way.

    Don’t get me wrong—I’m a fan of the website, but I just want you to understand the reality of how it works. The next time you’re thinking about getting a valuation for your home, I hope that you’ll come to our website or, better yet, give us a call or send an email. We’d love to give you an accurate estimation of your home’s value.

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    4 Responses to “How Do Zillow’s Zestimates Really Work?”

    • Ken Kenny

      Written on

      Zillow is not licensed in the state of Florida to appraise a property!!! Currently there is a class action suit in Illinois asking that Zillow stop the practice of appraising properties. Additionally Zillow is acting as an agent selling properties in Las Vegas and Florida. I have seen real estate signs in Rockford advertising Zillow homes!!
      Realtors better wake up or they will go the way of travel agents– out of business.
      Ken Kenny

      Reply
      • Alex Haigh

        Written on

        Good morning Ken. I dont think the are appraising but rather giving an “estimation” . What do you think?

        Reply
    • Katherine Neurohr

      Written on

      I have a license with Real Estate of Florida and I just wanted to let you know this is a fantastic video ! When I lived in the Cudjoe Key, Zillow averaged in the dry lots on the right side of Privateer Drive with the waterfront lots on the left. So much for their Algorithm ! Thank you for your great video !

      Reply
      • Alex Haigh

        Written on

        Thank you Katherine! We try to give informative content to our consumers. Thank you for reply!!

        Reply

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