If you’re thinking about selling your home, chances are you’ve typed your address into Zillow or Redfin to see what it’s “worth.” And if you’re like many sellers, you were pleasantly surprised by the number that popped up. But here’s the reality: that number could be off by tens of thousands of dollars.
In this episode of the Neiman Group Podcast, two seasoned real estate professionals break down why Zillow home value estimates mislead sellers, how agents can unintentionally make things worse, and what sellers can do to price their property correctly and actually get it sold.
The Problem With Online Estimates
Zillow and Redfin Use Flawed Algorithms
Zillow’s Zestimate or Redfin’s estimate might seem credible, but they’re generated by algorithms that take a blanket approach. These tools:
- Use nearby sales data without considering key property details
- Match homes with vastly different lot sizes, features, and layouts
- Ignore current market conditions or home interior condition
In short, they aggregate data and extrapolate values—but they can’t see inside your home, and they don’t understand your local market.
Real-World Example: Lot Size Mismatch
One seller had a 3,000 sq ft lot but priced her home using comps from homes with 11,000+ sq ft lots. That triple-size difference significantly inflated her expectations and hurt her ability to sell.
Why Overpricing Hurts
Your Home Will Sit on the Market
Homes priced based on faulty estimates often sit for months—sometimes even over 1,000 days. A long time on the market signals to buyers that something’s wrong, reducing offers even further.
You Might Lose Money
In extreme cases, sellers have to bring money to the closing table just to get rid of a home. One seller featured in the podcast was facing a $27,000 closing cost deficit—just to sell a house.
It Limits Your Options
An inflated price locks you into an agent contract for months. If the house doesn’t sell, you’re stuck, while interest payments and maintenance costs keep adding up.
Why Agents Aren’t Always the Solution
The CMA Isn’t Foolproof
Most real estate agents will run a comparative market analysis (CMA)—a document comparing your property to recent sales. But CMAs are often:
- Based on software, not manual comping
- Influenced by the desire to win your listing contract
- Lacking the detail and realism needed to price accurately
Agents Sell Dreams; Investors Sell Outcomes
Many agents want to tell sellers what they want to hear. If you want $400K, they may suggest that’s doable—even if the home is in poor condition or has unusual drawbacks. In contrast, investors run the numbers, assess the true market value, and tell you what the property is actually worth.
How to Accurately Price Your Home
Here’s what sellers should do to avoid pricing pitfalls:
1. Use Zillow as a Ballpark, Not a Price Tag
Zillow and Redfin can give you a starting point—but don’t treat it as gospel.
2. Request a CMA From an Agent You Trust
Use it to understand the general market, but stay skeptical of the final number. Ask the agent what specific comps were used—and how similar those properties really are.
3. Get a Second Opinion From an Investor
Find someone who flips or buys rental properties in your area. Investors deal in real prices, not best-case scenarios. They can spot overvalued listings immediately.
4. Walk the Property With Someone Objective
Details matter—condition, layout, roof age, flooring, kitchen updates. You need someone who can assess these and compare accurately.
5. Focus on Sold Comps, Not Listings
Active listings show what sellers want. Sold comps show what buyers are willing to pay. There’s a big difference.
Mistakes to Avoid
Relying Only on Zillow or Redfin
Their tools don’t consider:
- Property condition
- Lot or structure size differences
- Seller circumstances (foreclosure, urgency, etc.)
Blindly Trusting Your Agent’s CMA
Many CMAs are cookie-cutter, software-generated reports. If the agent isn’t willing to explain how they got the number, don’t use it.
Ignoring Investor Insights
Investors offer grounded valuations. They’re in the market every day making real offers. Their perspective can save you thousands.
Real Scenarios From the Podcast
- Seller stuck with 6-month contract: The agent promised a high list price to win the contract, but the home didn’t sell. Now the seller is trapped.
- $27K to close: A seller had to bring $27,000 to closing due to overpaying in the past and relying on bad pricing advice.
- Equity protection program success: One seller avoided that same fate thanks to a flexible investor solution that relieved them of debt and mortgage responsibility.
FAQ: Zillow Estimates and Home Pricing
Why is my Zillow estimate so high?
Because it’s based on aggregated data, not a home-specific appraisal. It likely compares your home to others that aren’t truly similar.
Can agents help me price accurately?
Some can—but many rely on software-generated CMAs. Get multiple opinions and demand detailed reasoning.
Should I get an appraisal before listing?
If accuracy is critical, yes. But investor input may be more aligned with actual market offers.
Why do some homes sit on the market so long?
Overpricing is the #1 reason. Unrealistic expectations keep homes from selling.
Final Takeaway
Zillow estimates aren’t designed to price your specific home. They’re designed to give an average guess. And while that might feel good on paper, it doesn’t help your house sell. If you’re serious about getting a deal done, go beyond the Zestimate. Compare real sales, ask for investor insights, and look at your property with a clear, unbiased eye.
Want to hear more? Listen to the full episode of the Neiman Group Podcast for a raw, honest take on why sellers get stuck—and how to break free.
