12 July 2025
As a Realtor who has sold a lot of homes, I’ve noticed something that always makes me raise an eyebrow. When I list a home—say, at $400,000—the Zestimate often “magically” adjusts to match the list price, sometimes within a day. If you’ve sold a home recently, go back and look at the Zestimate history. More often than not, you’ll see a clear change the moment your home went live on the market.
This isn’t just a coincidence. Zillow’s algorithm is built to pull in all kinds of data, including your home’s list price. When your property hits the MLS, that number becomes a signal the algorithm uses to recalculate its estimate. So while the Zestimate can seem like a neutral, third-party opinion of value, it’s often just reacting to what’s already been publicly posted.
That’s one of the biggest reasons I tell clients not to rely too heavily on online estimates. The Zestimate is based on an automated model that uses public records, prior sales, square footage, bed and bath count, and neighborhood trends. It’s powered by machine learning and has gotten more advanced in recent years, even adjusting for market shifts and price cuts on active listings. But it still can’t walk through your home. It doesn’t know what’s been updated, what needs work, or how it actually feels when someone steps inside.
Two homes can look identical on paper—same square footage, similar location—but be worlds apart in real life. One might have natural light pouring in through every window, a newly renovated kitchen, and fresh paint throughout. The other might have dated finishes, awkward flow, and the lingering scent of pets or mildew. The algorithm doesn’t see or smell any of that. It values them the same, even though buyers definitely don’t.
Emotional and sensory factors have a major impact on how buyers perceive value. Things like lighting, layout, cleanliness, and smell all contribute to the impression a home makes. Buyers often decide how they feel about a house within the first few minutes, and once that impression is formed, it’s hard to shake. A Zestimate doesn’t account for that moment when a buyer walks in, sees the natural light bouncing off freshly refinished floors, and immediately starts picturing where the couch will go.
Even things like staging, paint color, and how a home is styled for photos can make a measurable difference. That’s not something an algorithm can compute—but it’s something buyers feel. And those feelings are often what drive competitive offers, quick decisions, or hesitation.
The Zestimate is a tool, and in some markets, it’s a decent starting point. But it’s not an appraisal, and it’s not a replacement for local market knowledge and in-person insight. It doesn’t know that your neighbor’s house backs to a noisy road while yours backs to protected woods. It doesn’t recognize that your home has been cared for meticulously, while the “comparable” next door has been rented out for years and needs everything.
Bottom line: algorithms estimate, but humans evaluate. Your home is more than just a collection of data points—it’s a space with personality, energy, and detail that matters. And that’s why pricing your home the right way takes more than a quick online search. It takes someone who understands the numbers and the nuance.
Thinking about selling? Let’s have a real conversation about your home—what it’s worth, how it presents, and how to position it for the best possible result.
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