There are two truths* about the The Zestimate®:
1 It is always higher than market value – always.
2 Sellers believe The Zestimate® is an accurate measure of home value – always.
Zillow’s Definition: “The Zestimate® home valuation is Zillow’s estimated market value, computed using a proprietary formula.”
Few read the rest of the definition:
Zillow says, “It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate® is calculated from public and user-submitted data, taking into account special features, location, and market conditions. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:
Getting a comparative market analysis (CMA) from a real estate agent
Getting an appraisal from a professional appraiser
Visiting the house (whenever possible)”,
It’s a starting point and not the end point
of a conversation on market value
* a non-factual and unscientific observation loosely based on conversations with home owners and agents