The Truth About Zillow Estimates (and Why Local Agents Know Better)

The Truth About Zillow Estimates (and Why Local Agents Know Better)

  • SK Group
  • 11/19/25

If you’ve browsed homes online at any point in the last decade, you’ve seen it: the bold Zestimate, an instant value estimate that seems definitive, data-driven, and objective. For many homeowners and buyers, it feels like a quick way to understand what a property should be worth. But while Zillow’s technology is powerful, its outputs often fall short of the reality on the ground, especially in a market as complex as Metro Detroit.

Algorithms can process immense amounts of data, but they still miss critical factors that determine a home’s true value. Neighborhood micro-trends, architecture, renovations hidden behind walls, buyer demand pockets, school district borders, and seasonal shifts don’t always translate into numbers a system can process. That’s where a seasoned local agent becomes indispensable.

Let’s break down what Zillow gets right, what it gets wrong, and why local expertise always prevails.

What Zillow Gets Right

Zestimates offer some real advantages, just not the ones most consumers think.

1. A Broad Market Snapshot

Zillow is excellent for directionally understanding the market. It may show whether the area is broadly trending up or down, offering a general sense of momentum.

2. Strong Use of Public Data

The platform efficiently compiles tax records, MLS data (when available), and historical sale prices. This forms an informative baseline.

3. Useful for Early Research

For curious homeowners or early-stage buyers, a Zestimate provides a quick ballpark. It’s a starting point, not an appraisal, not a CMA.

4. Fast, Easy, and Accessible

Zestimates update automatically and require zero effort, making them convenient for comparison shopping.

5. Great for Noticing Patterns

If a whole region is appreciating or cooling, Zillow usually reflects the trend accurately, even if the specific number is off.

What Zillow Gets Wrong

Here’s where the disconnect begins, and why the Zestimate should never be the final word.

1. It Cannot See Inside Your Home

Zillow doesn’t know:
• If you remodeled your kitchen last year
• If your basement is finished
• If your roof is new
• If your home has outdated mechanicals

These changes can shift the value by tens, or hundreds, of thousands of dollars.

2. It Misses Hyper-Local Nuances

Metro Detroit is not a uniform market. Neighborhood values can change block to block.

Consider examples:
• Royal Oak vs. Pleasant Ridge: same vicinity, radically different pricing dynamics
• Birmingham vs. Bloomfield Township: school districts alone create large price gaps
• Ferndale: bungalow-heavy streets differ greatly depending on walkability and proximity to Woodward

An algorithm cannot interpret these complexities.

3. It Struggles With Unique or Historic Homes

Homes in Palmer Woods, Boston-Edison, Sherwood Forest, Indian Village, and Birmingham’s historic districts confound algorithms because they do not conform to standardized data sets.

The more unique your home, the more incorrect your Zestimate likely is.

4. It Overlooks Real-Time Buyer Behavior

Zillow doesn’t know if:
• A home listed down the street received 10 offers
• Inventory is tightening in your price point
• A buyer needs to move now
• Mortgage rates just shifted buyer psychology

Agents see these patterns daily. Algorithms do not.

5. It Can Pull From Flawed or Outdated Inputs

Zillow is often limited by public record timing and data accuracy. If your local municipality hasn’t updated something, or if a renovation wasn’t permitted, the Zestimate can be wildly off.

6. It Treats Metro Detroit Like a Single Market

The region has:
• First-ring suburbs
• Multiple school districts
• Diverse architectural stock
• Varying tax rates
• Wildly different walkability scores

These distinctions dramatically impact value. Zillow simply doesn’t capture them with human-level nuance.

Why Local Agents Know Better

A talented Metro Detroit agent blends data, experience, intuition, and neighborhood familiarity, something no algorithm can replicate.

1. They Use True Comparable Sales, Not Computer Matches

Agents hand-select comps based on:
• Interior quality
• Condition
• Style and layout
• Updates
• Street desirability
• Neighborhood pockets

Zillow cannot evaluate these subtleties.

2. They Understand Buyer Preferences in Real Time

Agents see what today’s buyers are prioritizing. For example:
• Birmingham buyers often prioritize walkability to downtown
• Royal Oak buyers may lean toward mid-century or updated bungalows
• Young professionals flock to Ferndale for lifestyle and affordability
• Huntington Woods and Pleasant Ridge attract families prioritizing community feel

These motivations influence value far beyond what data can compute.

3. They Know How to Value Renovations Properly

Not all updates are equal:
• A high-end kitchen remodel in Birmingham yields more value than the same remodel in a less competitive market
• Finished basements add different levels of return depending on the suburb
• Smart home upgrades and energy-efficient systems matter more in some areas than others

Agents price these nuances accurately.

4. They Can See What’s Coming Soon

Zillow only sees what’s already happened. Local agents often know:
• Which homes are about to hit the market
• Which buyers are ready to make moves
• Which homes had multiple offers before they even hit the MLS
• Which deals fell apart and why.

Pricing with foresight, not hindsight, drives better decisions.

5. They Navigate Emotion, Strategy, and Presentation

Value isn’t just data. It’s:
• Staging
• Photography
• Timing
• Negotiation
• Offer pressure
• Seasonality

Agents adjust strategy for each home to maximize results. An algorithm can’t manage strategy.

Zestimates are a helpful starting point, but they are not a real valuation. In Metro Detroit, an incredibly complex, fast-shifting, hyper-local market, accuracy demands context, expertise, and human understanding. A skilled local agent brings the insight, strategy, and interpretation that Zillow’s algorithm simply isn’t built to replicate.

If you want to know what your home is truly worth, or what you should pay in today’s market, lean on a trusted expert who understands the streets, neighborhoods, schools, trends, and hidden dynamics of Metro Detroit real estate. 

A Zestimate gives you a number. A local agent gives you the truth.

For expert guidance on finding, evaluating, and knowing the real value of your home, trust Sam Kaplunov, your local real estate partner who understands home updates, neighborhood dynamics, and what it takes to truly assess every part of your home for its maximum value.

Work With Us

Sam and SK Group have the experience to help a wide range of clients from first-time buyers to multi-property investors. We recognize the uniqueness of each situation and strive to provide a personalized approach to meet the needs of each client.