Zillow Said What? Why Online Estimates Are Often Wrong

By The Olsen Team

We hear it all the time:
“But Zillow says my home is worth $X!”
“Zillow says this house is underpriced!”
Or our personal favorite:
“Zillow says the Zestimate went up overnight — should I sell right now?!”

Ah, Zillow. The real estate website we love to browse (and sometimes love to hate). While online home value estimates can be a fun starting point, they’re often about as accurate as asking your neighbor’s dog for investment advice. Let’s break down why you should take online estimates — like Zillow’s Zestimate — with a healthy grain of salt.

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Quick Disclaimer: It’s Not Just Zillow

We’re using Zillow as a familiar example here, but this applies to most online home valuation sites: Realtor.com, Redfin, Trulia, and the many “What’s My Home Worth?” widgets you’ll find online. Almost all of these platforms use similar automated valuation models (AVMs). While the formulas may differ slightly, the core issue is the same — no algorithm can replace a real person walking through your home, understanding your local market, and evaluating all the unique features of your property.

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What Exactly Is a Zestimate?

Zillow’s Zestimate is an automated estimate of a home’s market value. It uses an algorithm that pulls data from public records, tax assessments, recent sales, and user-submitted information. In theory, it’s a great tool for giving you a rough ballpark of a home’s value.

The key word there? Rough.

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Why Are Zestimates Often Wrong?

1 They Can’t See Inside Your House

Zillow doesn’t know you just remodeled the kitchen with quartz countertops, installed energy-efficient windows, or finally finished that basement. Conversely, Zillow also doesn’t know about that mystery leak in the upstairs bathroom or the aging HVAC system. The algorithm can’t account for condition, upgrades, or deferred maintenance.

2 Neighborhood Nuances Matter

In many areas (including right here in Kitsap County), homes across the street from each other can have wildly different values based on views, lot size, or neighborhood desirability. Zillow’s data doesn’t always pick up these hyper-local market nuances.

3 Public Records Aren’t Always Up to Date

Zillow pulls from public data — but if your county’s records are outdated or missing key details, that faulty information goes straight into the estimate.

4 Market Trends Move Faster Than Algorithms

Real estate is constantly shifting. Buyer demand, interest rates, local economic conditions — they all impact pricing. Algorithms often lag behind what’s actually happening on the ground.

5 User-Entered Data Can Skew Things

Homeowners can update Zillow with their own info. Sometimes it's accurate. Sometimes… let’s just say optimism gets the better of folks.

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So, Is Zillow Useless?

Not at all. Zillow and other online tools can be a fun starting point. They’re great for getting a general sense of the market, seeing active listings, and comparing homes. But when it comes to pricing your home — or making an offer — trust the pros.

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Nothing Beats a Local Expert

At The Olsen Team, we combine real-time data, local experience, in-person property evaluations, and market knowledge to price your home correctly. We look at comparable sales, buyer trends, condition, upgrades, and yes — even that newly finished basement.

Online estimates may give you a number. We give you a strategy.

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Ready for the Real Number?

Skip the guessing game. Contact The Olsen Team today for a free, no-obligation home valuation.
Call (360) 204-4493 or visit TheOlsenTeam.com
Real answers. Real expertise. Real results.