Ever wondered how Zillow calculates their zestimates? This is a great video by Zillow on how they actually calculate the “zestimate” for homes. In the video, David Gibbons, Community Relations Manager for Zillow says “a zestimate is an estimate of the value of your home. It is not what you should list your home for and it is not what we are saying you should offer for a home you are trying to buy.” He goes on to talk about considerations impacting the accuracy of the zestimate. The wider the range, the less confident Zillow is in the zestimate value. Gibbons also says you should look at the Zestimtae value over time.  It is a great video to get an understanding of how zestimates are calculated.Â
If you are selling your home, it is import to know the zestimate because home buyers are looking at those numbers before they write offers on your home. A zestimate is not a replacement for a full market analysis by a licensed agent who understands the current market conditions in that neighborhood, but it can be a helpful starting point.