How Accurate Is Your Home’s Online Estimate?

How Accurate Is Your Home’s Online Estimate?

We’ve all done it — popped our address into Zillow or Redfin to see what our home is “worth.” It’s quick, free, and tempting. But here’s the truth: those numbers aren’t nearly as accurate as they look.

If you’re a seller, relying on online estimates could mean overpricing your home and watching it sit on the market, or underpricing and leaving thousands on the table.

What Is an Online Home Estimate?

An online home estimate (like Zillow’s Zestimate) is a computer-generated guess at your home’s market value. These sites are media companies, not brokerages — their business is attracting clicks, not pricing homes with precision.

That’s why estimates are best seen as a starting point, not the final word.

How Do Online Estimates Work?

They crunch public data:

• Tax records (often outdated or wrong)
• Square footage and lot size
• Recent sales nearby
• User-submitted corrections

What they can’t do:

• Walk through your home
• See your renovations or condition
• Factor in buyer demand right now

In short: they provide numbers without context.

How Accurate Are They?

Even Zillow admits its Zestimate has a 2–6% median error rate on active listings. Off-market homes? The error can be much higher.

Accuracy also varies:

• More consistent for condos or uniform neighborhoods
• Less reliable in areas with diverse housing styles

5 Reasons Online Estimates Miss the Mark

• They’re just a starting point. Algorithms can’t see upgrades, condition, or demand.
• They rely on public data. Tax records often miss finished basements, additions, or correct square footage.
• They ignore local nuances. One block can mean a big price difference. Algorithms often pull from county-wide data.
• They don’t measure quality. A sunny master suite or a brand-new roof? The computer doesn’t know.
• They hedge with wide ranges. A $300K estimate might come with a $260K–$340K range. That’s a big “we’re not sure.”

Why Sellers Should Care

Buyers are checking Zillow. That means your Zestimate can shape their first impression — even if it’s wrong.

• Too low? Buyers may question your asking price.
• Too high? You might overprice and scare off interest.

Exposure on Zillow matters. Pricing based on Zillow doesn’t.

What’s More Reliable?

• Comparative Market Analysis (CMA): A Realtor-prepared, side-by-side look at real recent sales adjusted for upgrades and condition.
• Appraisal: A licensed appraiser’s professional opinion, often required by lenders.
• Local expertise: Realtors who know your upgrades and your neighborhood demand.

How to Use Online Estimates

• Treat them as a conversation starter, not a price tag.
• Track trends, not exact numbers.
• Ask your Realtor to explain the differences when you’re ready to sell.

Our Advice for Sellers

• Check your Zestimate — but don’t obsess.
• Document your upgrades (receipts, permits, photos).
• Get a CMA. This is what serious buyers and their agents rely on.
• Be realistic. The market — and buyer demand — set the final price.

As you can see, it can be “fun” to check out online estimate sites if you’re curious, but don’t depend on them when the time comes to price your home. If you want to know what your home is worth, even if you aren’t selling anytime soon, call or email me and I can do a quick walk-through of your home and provide a more accurate number for you quickly and at no cost.