One of the questions I get from home sellers is whether they should pay attention to their Zestimate on Zillow.
My answer is usually the same: the Zestimate is not the value of your home, but it can still affect your sale.
As real estate professionals, we know that a Zestimate is simply an automated valuation model. It is a computer-generated estimate based on public records, MLS data, prior sales, and other information available online. It is not an appraisal, and it is certainly not a substitute for a professional market analysis. Zillow itself makes that clear.
That said, many buyers and sellers pay attention to it. 
In today’s market, consumers have more access to information than ever before. Before scheduling a showing, many buyers have already looked at Zillow, reviewed recent sales, checked price histories, and compared the Zestimate to the asking price.
Because of that, a Zestimate that is significantly lower than your list price can create problems.
Imagine your home is listed for $550,000, but Zillow is showing a Zestimate of $475,000. Even if the Zestimate is wrong, some buyers may immediately assume the home is overpriced. Others may never schedule a showing because they believe the seller is unrealistic. The Zestimate becomes part of the conversation whether we like it or not.
In my experience, most of the time this isn’t a major issue.
When a home officially goes on the market, Zillow often updates its Zestimate and brings it much closer to the actual listing price. Zillow states that listing information becomes part of the data used in its valuation model, which is why many homeowners notice their Zestimate change shortly after a property is listed.
However, there are situations where the Zestimate remains significantly off.
I see this most often with homes that have undergone major renovations, unique properties, homes with inaccurate public records, or properties where Zillow simply doesn’t have complete information.
If your home is in the Coming Soon phase and the Zestimate appears drastically inaccurate, there are a few things you can do.
Update Your Home Facts on Zillow
The first step is to claim ownership of your property on Zillow and review the information they have on file.
To do this:
- Search for your property on Zillow.
- Click “Claim Home.”
- Complete the ownership verification process.
- Review the home’s facts and features.
- Correct any inaccurate information and add details that may be missing.
You can often update information such as square footage, bedroom count, bathroom count, architectural style, roof type, heating system, amenities, and other property features. Zillow states that providing complete and accurate information can help improve the accuracy of a Zestimate.
Keep in mind that updating information does not guarantee the Zestimate will increase. The goal is accuracy, not inflation. Zillow also notes that changes may not happen immediately because their valuation models update periodically.
Ask Your Realtor About AVM Settings
There is another option that many homeowners are unaware of.
Many MLS systems include a setting related to Automated Valuation Models (AVMs). Depending on your local MLS and how third-party websites handle the data feed, your Realtor may be able to disable the AVM display for the listing.
In some cases, this can prevent Zestimate-style estimates from appearing while the home is actively marketed. MLS participants in many areas have access to an AVM setting that controls whether automated valuations are distributed to participating websites.
Not every MLS operates the same way, and not every website handles AVM settings identically, but it is absolutely worth discussing with your agent if the Zestimate is significantly inaccurate and creating concern.
The Bottom Line
If your Zestimate is dramatically different from your list price, it can influence how buyers perceive your home before they ever walk through the front door.
If you’re preparing to sell, review your Zillow information early, especially during the Coming Soon period. Make sure the home’s facts are accurate, discuss AVM options with your Realtor if necessary, and focus on creating a pricing strategy based on real market data rather than an algorithm.
The Zestimate may not determine what your home sells for, but it can influence how buyers react to your listing, and that’s something worth paying attention to.