Ed Neuhaus AI is transforming the real estate industry, and home valuations are no exception. Today, homeowners can get an instant estimate from sites like Zillow, Redfin, and Realtor.com—but how reliable are these numbers? If you’ve ever checked your Zestimate and thought, “That doesn’t seem right,” you’re not alone.
Why Zillow and Other Estimates Miss the Mark
Zillow’s algorithm relies heavily on public records, tax appraisals, and basic comparable sales data to generate its Zestimates. But these numbers often fail to account for key factors that influence your home’s true market value, such as:
- Recent renovations or upgrades
- Unique property features (views, pools, acreage, etc.)
- Local market trends that aren’t reflected in outdated sales data
- Supply and demand shifts in micro-markets
This is why two nearly identical homes—even on the same street—can have drastically different real-world values compared to what Zillow reports.
A Smarter Approach to AI-Powered Valuations
The AI valuation tool I’m testing takes things a step further. Instead of just relying on tax data and public records, it analyzes real-time market trends, recent sales, and hyper-local data to provide a more precise estimate of what your home might actually sell for.
AI is making home valuations faster and smarter, but human expertise still plays a key role. Want to know what your home is really worth? Contact us for a personalized market analysis.
Originally published on LinkedIn March 5, 2025
