Published January 14, 2026

The Difference Between Zillow and Reality

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Written by Jason Matt

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**How Much Is My Home Worth?
The Difference Between Zillow and Reality**
If you’re thinking about selling your home in Michigan, one of the first things you’ve probably done is type your address into Zillow to check the Zestimate.
And then you wondered:
💬 “Is that number real?”
💬 “Could I actually sell for that?”
💬 “Why does the price keep changing?”
Here’s the truth:
**Zillow is a helpful starting point —
but it’s rarely an accurate valuation of your home.**
In Michigan especially, Zestimates can be off by 5%–20%, and in some cases far more.
Let’s break down why Zillow gets it wrong… and how to get a number you can actually trust.
1. Zillow Has Never Been Inside Your Home
Zillow doesn’t know:
If you updated the kitchen
If the roof is 20 years old
If your basement is finished
If you have a lake view
If you added a deck or patio
If you upgraded plumbing or electrical
If your home is impeccably maintained
If your neighbor’s house needs major updates
Zestimates are based on an algorithm, not an inspection, walkthrough, or real evaluation of condition.
2. Michigan Subdivisions Are Hyper-Local — Algorithms Can’t Keep Up
Two homes in the same ZIP code can differ by:
School district
HOA rules
Lot premium
Waterfront / pond / wooded privacy
Traffic noise
Street desirability
Quality of nearby homes
Zestimates treat these homes as the same.
Real buyers don’t.
3. Zillow Mixes In Sales That Aren’t Comparable
The algorithm often pulls:
Fixer-upper sales
Non-arm’s-length sales (family transfers)
Estate sales
Foreclosures
Distressed properties
New construction premiums
Homes twice the size of yours
These improper “comps” skew the value drastically.
4. Michigan Public Records Are Often Outdated
Many cities and townships in Southeast Michigan update records infrequently.
Zillow may think your home is:
1,200 sq ft (when it’s actually 1,450)
Missing a bathroom
Missing a finished basement
Still using the square footage from 10 years ago
Your Zestimate is only as good as the records feeding it — and those records are often incomplete.
5. Zillow Can’t Factor Real Buyer Behavior
A true valuation requires:
✔ Local demand
✔ Competing inventory
✔ Seasonality
✔ Interest rate impact
✔ Buyer motivation
✔ Pricing strategy
✔ Photographs and presentation
✔ Marketing plan
Zillow can’t analyze these human variables — but they determine your actual sale price.
6. Real Michigan Market Data Beats Algorithms Every Time
A professional valuation includes:
Recent comparable sales (hand-selected, not algorithm-picked)
Pending sales (Zillow can’t see these accurately)
Active competition
Neighborhood microtrends
Real pricing strategy
Home condition
Buyer demand in your price range
Time of year impact
Agent insight from dozens of transactions
This produces a value range that is far more accurate than any estimate online.
7. So… how do you know your home’s true value?
You have two smart, no-pressure options:
✔ Free dynamic market report
A live tool that updates every time your neighborhood activity changes.
✔ Professional, real-world valuation
(Not a Zestimate copy — an actual pricing analysis based on data, comps, and condition.)
Both are free.
Both are private.
Both give you clarity without committing to anything.
Bottom Line
Zillow is a starting point — not a price.
A Zestimate can’t replace a professional evaluation that factors in condition, competition, and actual buyer demand.
If you’d like your true market value, I can run a custom valuation for your home anytime — no listing required, no pressure.

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