The following is actually written on Zillow if you click the ? to find it.
The Zestimate (pronounced ZEST-ti-met, rhymes with estimate) home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is pulled from data; your real estate agent or appraiser physically inspects the home and takes special features, location, and market conditions into account. Variations in price also occur because of negotiating factors, closing costs, and timing of closing. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:
* Getting a Comparative Market Analysis (CMA) from a real estate agent
* Getting an appraisal from a professional appraiser
* Visiting the house (whenever possible)
Over the past few years I have been questioned by buyers why the Zestimate on Zillow doesn’t match up to the list price. Technology and information websites like Zillow and Trulia offer great information for buyers. However, you need a professional real estate agent (human) that does this for a career and visits all the listed properties in the territories/school districts where they are a local expert to advise you on value when buying or selling.
For more information on what Zillow says about this in fine print, read here http://www.zillow.com/wikipages/What-is-a-Zestimate/ and then call or email me for a price opinion. Happy to offer some human expertise!