Zillow Home Values: How Accurate Is a Zestimate?

In today’s digital age, technology influences nearly every major purchase—including buying or selling a home. When browsing listings, many turn to Zillow home values for an estimate of what a property might be worth. But just how much trust should you place in those numbers?

Zillow’s proprietary pricing tool, the Zestimate, is often used by buyers, sellers, and curious homeowners. But it's important to understand its limitations before making any real estate decisions based on it.

What Is a Zillow Zestimate?

The Zestimate is Zillow’s automated estimate of a home’s market value, calculated using an algorithm that pulls data from public records, recent sales, and MLS listings. It’s available for most properties across the U.S. and provides a price range along with a specific estimate.

Example: A home listed in Lithia, Florida for $550,000 had a Zestimate of $531,400—with Zillow estimating the value could fall anywhere between $505,000 and $558,000.

While this seems precise, these figures are only as good as the data they’re based on.

How Accurate Are Zillow Home Values?

Zillow home values can be fairly accurate—but that’s not always the case. According to Zillow:

• On-market homes have a median error rate of 2.4%

• Off-market homes show a much higher median error rate of 7.49%

In states like Florida, the error rate for active listings is around 2.16%, which can still result in a $10,000 to $30,000 margin of error depending on a home's price. The accuracy is also location-dependent. For instance, Zestimates in San Francisco tend to have a 3.33% error rate, while those in Colorado Springs are closer to 1.2%.

The margin for error grows significantly when the home hasn’t been sold recently or lacks complete public data. Zillow’s algorithm may also misinterpret details like square footage or recent renovations—leading to a Zillow home value that’s wildly off.

Real-Life Examples of Zestimate Gaps

Zillow co-founder Rich Barton once listed his Seattle home for $1.75 million, but it sold for $1.05 million—a 40% discrepancy from its Zestimate. This highlights that even the creators of the tool understand it shouldn’t be viewed as gospel.

You may also run into buyer or seller resistance due to mismatched expectations. A buyer might refuse to offer more than the Zestimate, even if a home is listed at fair market value. Sellers, in contrast, may demand a higher price because the Zestimate inflates their expectations.

When to Use Zillow Home Value Estimates (and When Not To)

✅ Use Zestimates when:

• Starting to explore home values in a neighborhood

• Comparing multiple homes for general pricing insights

• Considering refinancing or tapping into home equity

🚫 Don’t rely on Zestimates when:

• Pricing your home to sell

• Making an offer on a property

• Finalizing a refinance or home equity loan

• Calculating property value for insurance or investment purposes

For critical decisions, you’ll need insights from a licensed real estate agent or a professional appraiser who can factor in local trends, condition, location, and upgrades—something an algorithm can’t always quantify.

How to Get a More Accurate Home Value

• Talk to a local real estate expert: Agents have real-time knowledge of your area’s market conditions and can compare your home to recent sales.

• Request a comparative market analysis (CMA): Most agents offer this for free.

• Get a professional appraisal: Required in most mortgage transactions, an appraiser gives the most precise valuation by physically inspecting the property.

Final Thoughts on Zillow Home Values

Zillow’s Zestimate can be a helpful tool—but it’s just that: a tool, not a replacement for professional judgment. The best real estate decisions are informed by a combination of digital resources and human expertise.

If you're planning to sell, refinance, or simply want to understand your home’s true worth, don’t stop at Zillow home values. Reach out to a trusted real estate professional who can give you the full picture.

📞 Need a second opinion on your home's value?
Let’s connect for a personalized valuation based on today’s market—not just an algorithm.