When it comes to buying or selling a home, accuracy matters. Yet millions of homeowners rely on Zillow Zestimates as if they were gospel. The problem? Zillow has long been flawed — and those flaws are still costing people real money today.
Below are 9 major ways Zillow continues to get it wrong, and why you should never base your home’s true value solely on an algorithm.
1. Zillow Misses Rapid Appreciation or Depreciation
Real estate markets can shift on a dime. But Zillow still leans on closed sales from 3–4 months earlier. In fast-moving markets, this lag can skew values by 10% or more, leaving buyers and sellers with outdated numbers.
2. Zillow Ignores Pending Sales Over (or Under) List Price
In hot markets like San Diego, properties regularly sell for $500K–$1M above asking. Conversely, in cooling markets, homes can sell well under list. Zillow doesn’t track these pending sales until they’re public, which means its valuations miss the real action happening right now.
3. Zillow Can’t See Remodeling or Updating
A 1970s tract home with original kitchens isn’t the same as a remodeled home with $400,000 worth of updates. Yet Zillow treats them nearly equally. Without knowing the age or quality of updates, Zillow routinely undervalues remodeled homes and overvalues outdated ones.
4. Zillow Misses the Value of Views
A panoramic mountain view vs. a neighbor’s fence — the difference can be $75,000 or more. Zillow’s algorithm doesn’t understand the emotional and market premium buyers place on views, often skewing numbers dramatically.
5. Zillow Struggles With Lot Size Premiums
Quarter-acre vs. one-third acre lots? That difference can swing values significantly. Zillow often overlooks these premiums, causing undervaluation or overvaluation in neighborhoods where land commands top dollar.
6. Zillow Doesn’t Recognize Lot Utility or Slope
Bigger isn’t always better. A sloping three-quarter acre lot may be worth less than a flat quarter-acre lot due to usability. Zillow’s “more land = more value” approach misses this nuance entirely.
7. Zillow Overlooks Builder Reputation
Not all homes are created equal — even in the same neighborhood. Builder reputation matters, with some commanding higher prices for better layouts or craftsmanship. Zillow completely ignores this, despite it being a major buyer consideration.
8. Zillow Misses Location & External Influences
The golden rule of real estate is location, location, location — but Zillow’s algorithm often gets it wrong. A home on a quiet cul-de-sac sells for more than the same home backing to a busy street. Proximity to schools, shopping centers, or noisy traffic can easily shift values by tens of thousands, and Zillow rarely accounts for it.
9. Zillow Ignores Deferred Maintenance
Old roof? Foundation issues? Outdated HVAC? Zillow doesn’t factor in deferred maintenance. These items can lower a home’s value dramatically, yet Zillow’s valuations overlook them — leading to inflated Zestimates.
The Bottom Line: Don’t Rely on Zillow for Accuracy
Zillow is a starting point, not an appraisal. If you’re serious about buying, selling, or refinancing, you need a professional market analysis from a local agent or appraiser who understands the nuances Zillow overlooks.
