Zestimate
Definition and meaning of Zestimate in real estate.
Zestimate is a proprietary, computer-generated estimate of a home's market value created by the online real estate database company Zillow.
In more detail
The calculation uses public records, user-submitted data, and proprietary algorithms that analyze local market trends, historical sales, and comparable properties. While home buyers and sellers frequently use it as a starting point for pricing discussions, it is not a formal appraisal and should not be treated as one.
The accuracy of a Zestimate depends on the availability of public records in the area, meaning it is often less accurate in states with non-disclosure laws where sales prices are not publicly reported. Real estate agents use local MLS data to conduct comparative market analyses to provide a more precise valuation.
Key facts
| Category | Buying & Selling |
|---|---|
| Created by | Zillow |
| Type of valuation | Automated valuation model (AVM) using public records and user data |
| Watch out for | Inaccuracies in non-disclosure states where final home sale prices are private |
A prospective home buyer checks Zillow to find that a home has a Zestimate in the range of three hundred thousand to three hundred and fifty thousand dollars, but they hire a licensed appraiser to determine the actual market value.
Frequently asked questions
How accurate is a Zestimate?
The accuracy varies widely depending on the local market and the data available, and it is generally more accurate for homes in active suburban tracts than unique rural properties.
Can a homeowner change their property's Zestimate?
Homeowners cannot change the number directly, but updating their home's details on Zillow, such as bedrooms or square footage, can trigger a recalculation.