Can You Trust Zillow Estimates?

If you’ve been browsing homes online, chances are you’ve seen Zillow’s “Zestimate”—the price Zillow thinks your home is worth. It’s an eye-catching feature, but how reliable is it really?

The Truth About Zestimates

Zillow pulls data from public records, tax assessments, and user-submitted information to calculate a home’s value. While it can be a helpful starting point, it’s not an appraisal and certainly not a replacement for professional market analysis.

Why Zestimates can be off:

• Local Market Nuances: Zillow can’t always account for neighborhood trends, street desirability, or micro-market shifts (like being on the quiet side of the street vs. a busy one).

• Home Upgrades (or Lack Thereof): Did you remodel your kitchen or add a backyard studio? Zillow doesn’t know the quality of updates or finishes unless it’s manually entered.

• Unique Features: Views, layouts, lot size, and architectural details all influence value—things an algorithm can easily miss.

• Market Conditions: Real-time buyer demand and competing listings affect price in ways Zillow can’t fully track.

Why Zestimates Can Still Be Helpful

Even though they aren’t 100% accurate, Zestimates do have value as a starting line:

• Instant Ballpark Figure: They give homeowners a quick sense of what their property might be worth without waiting for an agent or an appraisal.

• Trend Spotting: If you track your Zestimate over time, you may see patterns that reflect broader market movement.

• Conversation Starter: Many clients start with a Zestimate, which makes it a useful entry point before digging into more accurate numbers.

• Comparison Tool: They can help you compare different areas or get a feel for market ranges when browsing online.

Think of the Zestimate as a first draft—useful to glance at, but not the final version of your home’s value story.

What Is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis, or CMA, is a detailed report created by a real estate professional to determine your home’s true market value. It goes far beyond an algorithm by looking at:

1. Comparable Sales (“Comps”) – Homes similar in size, style, and location that have recently sold. These sales show what buyers are actually willing to pay right now.

2. Active Listings – The homes currently for sale in your neighborhood. This is your direct competition and shows how your home would stack up today.

3. Pending Sales – Homes under contract reveal what’s appealing to buyers right now.

4. Expired or Withdrawn Listings – Properties that didn’t sell help us understand what the market rejected (often overpriced homes).

5. Adjustments for Features – Square footage, upgrades, condition, lot size, layout, views, and even curb appeal are factored in.

6. Market Trends – Local absorption rates, average days on market, and buyer demand shifts all get layered into the analysis.

Why a CMA Is So Important

Unlike a Zestimate, a CMA is custom to your home and reflects what’s happening in your exact market, right now. Here’s why it matters:

• Pricing Correctly = Faster Sales – Homes priced accurately based on a CMA sell quicker and for more money.

• Avoid Leaving Money on the Table – An online estimate might undervalue your home. A CMA ensures you don’t sell for less than it’s worth.

• Prevent Overpricing – Overpriced homes sit on the market, leading to price drops and lost momentum.

• Build Buyer Confidence – Buyers (and their agents) respect a well-priced home supported by professional analysis.

Bottom Line

Zillow estimates are a great place to start, but they’re not where you should finish—especially if you’re serious about selling or refinancing.

👉 I’d be happy to create a personalized, accurate CMA for you. This way, you’ll know exactly where your home stands in today’s market and how to position it for maximum value.

Let’s connect and talk about your home.

—
RaeAnne Marcum
Luxury Real Estate Broker | Mesnick Dalto Group
Founding Broker & Team Lead
📲 509.521.5323
✉️ raeanne@mdgresidential.com
@realestatebyraeanne