Real estate professionals sometimes get inquiries from prospective real estate buyers and sellers about the Zestimate. Understanding how the Zestimate is calculated, along with its strengths and weaknesses, can provide the real estate pro with an opportunity to demonstrate their expertise.
Millions of consumers visit Zillow every month. Most understand that the Zestimate is exactly that, an estimate of the value of a home. Occasionally however, someone will come along that insists on setting the price they are willing to buy or sell for based solely on the Zestimate.
Education is the key. As a real estate professional, one thing you are always doing is educating your clients on all things real estate. The Zestimate is no different. Armed with an understanding of how the Zestimate is calculated and the Zestimate Data Accuracy table, you can explain, and show, Zillow's own accuracy numbers and talk about why the Zestimate is a good starting point as well as a historical reference, but it should not be used for pricing a home.
Be proactive. Look at what Zillow says about properties your client is interested in and bring up any concerns before your client does.
"Zestimate calls" tend to come from consumers who are highly engaged and interested in real estate. If a consumer is at the point where they are examining Zestimates and pricing, they tend to be further along in their search for a home and agent than most.