If you’ve ever Googled a house price, you’ve probably seen a number called a "Zestimate". It’s Zillow’s best guess at a property's market value. The idea sounds handy, but many people wonder how reliable it really is and how to use it without getting misled.
First off, a Zestimate isn’t an official appraisal. It’s an algorithm‑based estimate that pulls data from public records, recent sales, tax info, and even local market trends. Zillow updates the numbers daily, so the figure can change as new data rolls in. Because the model can’t see the condition of a home, recent upgrades, or a bad roof, the estimate can be off by a fair amount.
Behind the scenes, Zillow mixes three main data streams:
The algorithm weights each piece, then spits out a single number. If a house has a lot of recent sales nearby, the Zestimate tends to be tighter. In areas with few sales, the margin of error widens.
Don’t treat the Zestimate as the final word on price, but use it as a starting point. Here’s a quick checklist:
When you’re selling, a Zestimate slightly higher than your asking price can attract attention, but it can also set unrealistic expectations. When you’re buying, a lower Zestimate might hint at a bargain, but you still need to verify the property’s condition and any hidden costs.
One practical tip: use the Zestimate to gauge market trends over time. Track the same address for a few months; if the number is climbing steadily, the neighbourhood might be heating up.
Lastly, remember that Zillow’s model is constantly improving. The company updates its data sources and algorithm regularly, so today’s estimate could be more accurate than last year’s. Keep an eye on the “last updated” date to know how fresh the number is.
Bottom line: a Zillow estimate is a helpful reference, not a definitive price tag. Pair it with recent sales data, local expertise, and a quick walk‑through of the property, and you’ll have a solid foundation for any real‑estate decision.