The 3 Biggest Things to Know About Zillow in 2025
⚠️ Disclaimer: This article is for informational purposes only and does not constitute financial, real estate, or investment advice. Zillow’s Zestimates, pre-foreclosure listings, and other property information may not always be accurate or up to date. Always verify property details with a licensed real estate professional or local MLS before making any buying, selling, or investment decisions.
Hey guys, thanks for joining in. Today we’re going to dig deeper into the three biggest things you need to know when searching on Zillow.com in 2025. Before we dive in, if you liked this article, please comment below.
1. The Zestimate Is Not Always Accurate
What Is a Zestimate?
Zestimate is essentially Zillow’s algorithm for estimating the market value of a home you’re considering buying or one you currently own. The home valuation tool relies on both public and user-submitted data on bedrooms, baths, and square footage to determine what a property is worth.
Why the Zestimate Can Be Wrong
Some homes, for example, may have an unknown number of bedrooms and baths and even square footage. This heavily impacts Zillow’s ability to price the property accurately.
If a property in the same neighborhood with the same number of bedrooms, baths, and square footage sells for a hundred thousand dollars less because it’s a foreclosure or fixer-upper, that data will be used in the algorithm for the subject property — which can throw off the numbers.
How Accurate Is It Really?
According to Zillow’s own data, the median error rate for on-market homes is about 1.94%, while off-market homes have an average error rate of about 7.01% through 2025 (Zillow, The Close).
For example, if a Zestimate shows $500,000 in New York, the actual value could be roughly $465,000 to $535,000, a 7% range ($500,000 × 0.07 = $35,000).
The Bottom Line on Zestimate Accuracy
Even Zillow’s former CEO, Spencer Rascoff, famously sold his home for about 40% less than its Zestimate valuation (Inman).
The most reliable way to know what your home is worth is to list it for sale and see what buyers are willing to pay. The second-best option is to have a realtor, who knows the neighborhood, pull comparable data to determine the home’s value.
2. Pre-Foreclosures Are Not Actually for Sale
What Is a Pre-Foreclosure?
The second thing to look for on Zillow’s website is pre-foreclosures — or homes that aren’t actually for sale.
The pre-foreclosure stage is the period in which a notice of default or lis pendens is issued to the homeowner.
What It Means for Buyers
If a homeowner misses two or three payments in a row, they are at risk of the bank foreclosing and repossessing the home.
Options to Proceed
Option 1: Contact the Homeowner
You can try to contact the homeowner — by mail, phone lookup, or in-person — to see if they are willing to sell.
Option 2: Wait for the Foreclosure Process
Wait for the actual foreclosure process to complete. In some states, this can take three to six months or longer (Investopedia).
Why Pre-Foreclosures Waste Time
Zillow pre-foreclosure listings often do not represent homes you can buy immediately. If you’re looking for bargains, a realtor can help you find off-market listings with motivated sellers.
3. Zillow’s Listings Are Not Always Updated
Why Zillow Can Lag Behind
Zillow’s website can lag two to three days behind the MLS (Multiple Listing Service), the database realtors use to list homes (Realtor.com).
Some homes may still appear as active after an offer has been accepted. Others may list “Backup Offers Accepted” even when no further offers are being considered.
How to Avoid Wasting Time
To ensure accurate and timely information, rely on a realtor who can send listings directly from the MLS. This way, you’ll know the true status of each property — whether it’s active or sold.
Conclusion
Zillow is a helpful platform for browsing homes and getting a general idea of property values, but it has limitations. Its Zestimate is a starting point, and listings may not always be completely up-to-date.
For the most reliable information, work with a local realtor who can provide accurate, current data and guide you through the buying or selling process (Trustdale, Lamacchia Realty).
By combining Zillow’s tools with professional guidance, you can make smarter decisions without relying solely on automated estimates.
✅ References
- Zillow – How Accurate Is the Zestimate?
- The Close – How Accurate Is Zillow’s Zestimate in 2025?
- Inman – Zillow CEO Spencer Rascoff Sold Home for 40% Less Than Zestimate
- Investopedia – What Is Pre-Foreclosure?
- Realtor.com – How MLS Works
- Trustdale – Zillow’s Zestimates: How Close Are They to Real Value?
- Lamacchia Realty – That Zestimate Is Not Accurate
