Every week, I get calls from sellers saying, “My house is worth X because Zillow says so.” Or Redfin. Both platforms rely on proprietary algorithms that look at ZIP code, bed/bath count, square footage, and sales data. But they’ve never stepped inside your home. They don’t know if you own the most expensive chandelier in the world valued at $9 million—or if your house is falling off of its' foundation.
And buyers do the same thing. I’ll often hear, “Well, Zillow says this house is worth X.” That’s when I explain that a house is ultimately worth what a buyer is willing to pay for it. My job is to look at the home with them, review comparable sales, speak with the seller’s agent, and make an overall assessment of what the property will realistically sell for. If it’s a Mid-Century Modern, for example, that’s going to command a premium—and if it’s designed by a well-known architect, then even more so.
These algorithms don’t see the nuances that truly impact value. Is your backyard bare dirt, or a beautifully landscaped escape that transports you to vacation mode?
Here’s another issue: Zillow and Redfin often show different values. Sellers naturally lean toward the higher number, buyers toward the lower. And once a house is listed, notice how the Zestimate suddenly shifts to match the asking price. That’s because these are reactive models, not true valuations.
While Zillow reports a median error rate of 2.4% for on-market homes and 7.4% for off-market homes, in Los Angeles that can mean hundreds of thousands of dollars. During COVID, even Zillow’s own home-buying program collapsed when its algorithms couldn’t keep up with market shifts (Wired).
That’s why having a local agent matters. I’ve personally toured over 100 homes—no exaggeration—in the past three weeks. When I pull comps, I know many of those properties firsthand. Unlike an algorithm, when I evaluate a home, I’m comparing it to recent, real-world sales and factoring in condition, amenities, upgrades, and neighborhood trends.
So next time you hear “Zillow says…”—remember, it’s a starting point, not the whole story. Pricing isn’t a perfect formula—it’s a blend of data, experience, and insight that goes far beyond square footage, bedrooms, and bathrooms.
