Zillow Is a Powerful Marketing Tool with Important Limits Sellers Should Understand
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I often tell clients that I have a love-hate relationship with Zillow and I mean that in the most constructive way.
Zillow has become one of the most influential platforms in real estate. Buyers use it daily. Sellers expect their home to be there. And as a listing agent, I absolutely leverage Zillow as part of a strong marketing strategy.
Where things get tricky is when online analytics, especially the Zestimate, are treated as fact rather than what they truly are: automated estimates without full context.
Understanding both sides is key to using Zillow effectively without letting it drive the wrong decisions.
Where Zillow Truly Shines: Showcase, Exposure, and Visual Marketing
Zillow is excellent at what it was designed to do and that is showcase homes online.
Some of the strongest tools include:
- 3D walkthroughs and virtual tours that let buyers explore a home on their own time
- Video and enhanced listing features that increase engagement and time spent on a property
- Virtual staging, which helps buyers visualize scale, layout, and potential
- Massive buyer exposure, especially for out-of-town, overseas and relocation buyers
For sellers, this level of visibility is incredibly valuable. It supports interest, fuels showings, and complements professional photography, floor plans, and video marketing.
When used correctly, Zillow is a powerful part of a broader listing strategy.
Where Sellers Need to Be Careful: Online Analytics and Zestimates
The challenge comes when buyers and sellers start relying too heavily on Zillow’s analytics, particularly the Zestimate, to determine value.
Zestimates are created by algorithms. They pull from public records, recent sales, and basic property data. What they cannot fully account for includes:
- Interior condition and quality
- Renovations or lack thereof
- Layout functionality
- Micro-location differences within a neighborhood
- Buyer behavior and current demand
- Competing inventory and timing
In fact, I recently reviewed a home estimated at over $2M online where there was simply no supporting data in the local market to justify that number. (https://www.zillow.com/homedetails/51-Douglas-Rd-Needham-MA-02492/57472645_zpid/)
That doesn’t mean the home isn’t valuable. It means the algorithm doesn’t understand the full picture.
Why Online Estimates Are a Starting Point and Not a Pricing Strategy
Online valuations can be helpful as a reference point, but they are not a pricing strategy.
Accurate pricing requires:
- Local, recent comparable sales
- An understanding of which homes buyers are choosing today
- Context around timing, seasonality, and competition
- Insight into how buyers emotionally respond to a property
Pricing too high based on an inflated online estimate can actually hurt a seller by:
- Reducing early momentum
- Causing buyers to skip showings
- Leading to price reductions later, which weaken leverage
A strong launch, priced correctly from day one, almost always produces better results than chasing an algorithmic number.
The Best Approach: Use Zillow for Exposure, Not Valuation
The most successful sellers use Zillow for what it does best:
✔ Visibility
✔ Presentation
✔ Buyer reach
And they rely on local expertise for what matters most:
✔ Pricing strategy
✔ Market positioning
✔ Negotiation
When marketing and pricing work together and not against each other sellers are in the strongest possible position.
Final Thought
Zillow is not the enemy. It is a tool.
Like any tool, it works best when paired with experience, local knowledge, and real data. If you’re thinking about selling and want to understand what your home is truly worth in today’s market, an informed, personalized analysis will always outperform an online estimate.
Alison Borrelli
[email protected]
617-257-3012
