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Your Zestimate says one thing. The market might say something completely different.

Zillow isn't useless — but a starting point and a pricing strategy are two very different things. Here's what the algorithm can't see.

9 min read· Utah · Nephi · Juab County·By Dana Hoyt, Realtor®·September 6, 2026

If you own a home, there's a pretty good chance you've done it. You open Zillow. You type in your address. And there it is: the Zestimate.

Maybe you're pleasantly surprised. Maybe you immediately start calculating how much equity you have. Or maybe you're staring at the screen thinking: "There is absolutely no way my house is only worth that."

Here's the thing: Zillow isn't useless. A Zestimate can actually be a helpful starting point when you're curious about your home's value.

But a starting point and a pricing strategy are two very different things.

The algorithm

What is a Zestimate actually looking at?

Zillow describes the Zestimate as an automated estimate of a home's market value. Its model can consider things like:

Public records
MLS information
Previous sales
Square footage
Bedrooms and bathrooms
Comparable properties
Listing activity
Broader market trends

That is a lot of information.

But Zillow itself also makes something very clear: a Zestimate is not an appraisal. Zillow recommends supplementing it with additional research — including a professional appraisal or a Comparative Market Analysis, commonly called a CMA, from a real estate professional.

And there's a good reason for that.

Where it gets interesting

Zillow has data. Buyers have opinions.

This is where home pricing gets interesting. Two houses can look very similar on paper:

  • 4 bedrooms
  • 3 bathrooms
  • 2,800 square feet
  • Similar lot sizes
  • Same neighborhood

But walk through both homes and they could feel completely different.

One might have a beautifully updated kitchen. The other might still look like 2004. One could back up to an open field. The other could back up to a busy road. One might have a basement with a separate entrance, second kitchen, and a layout that could work well for multigenerational living or rental income. The other might technically have the same amount of finished basement square footage — with a completely different layout.

Those differences matter. And sometimes they matter a lot.

The closer look

Your home is more than bedrooms and square footage.

When I look at a home before recommending a price, I'm not just looking at a number on a computer. I'm looking at how buyers are likely to compare the property to everything else they can purchase. Things like:

Condition.

Has the home been updated? Does it need new flooring, paint, appliances, windows, roofing, or major mechanical work?

Location within the neighborhood.

A quiet cul-de-sac can feel very different from a house located along a busy street.

Lot.

Is it flat and usable? Is there room for kids, pets, toys, RV parking, or a shop?

Basement.

Finished and unfinished square footage are not valued the same way. And not every finished basement is automatically a legal rental or ADU.

Garage and parking.

Especially for families, trucks, trailers, and recreational vehicles, this can become a major selling point.

Layout.

Two homes with identical square footage can feel dramatically different depending on how that space is used.

Updates and finishes.

Buyers absolutely notice kitchens, bathrooms, flooring, lighting, and overall maintenance.

And then there is something even harder for an algorithm to measure.

The real competition

What else can buyers get for the same money?

This is one of the biggest questions sellers need to understand.

Imagine we list your home at $525,000. A buyer probably isn't looking at your home in isolation. They are scrolling through every other home somewhere around $500,000–$550,000 that meets their needs. They may be comparing your property against homes in Spanish Fork, Payson, Santaquin, Mona, Nephi, or surrounding communities.

And they are asking themselves:

"Which one gives me the most for my money?"

That is the competition. Your Zestimate isn't buying your home. A buyer is. And buyers ultimately determine whether the price makes sense.

The evidence

This is why comparable sales matter.

When I prepare a CMA, I'm trying to answer a much more specific question than "what are houses around here generally worth?"

"What are buyers currently paying for homes that would realistically compete with yours?"

That means looking at recently sold homes, active competition, pending properties when useful, location, condition, size, lot, basement, upgrades, days on market, and price changes.

I also want to know why one home sold for more than another. Sometimes a sold price by itself doesn't tell the whole story. Maybe one home had a huge lot. Maybe another had an updated kitchen. Maybe one sat on the market for months and eventually reduced its price several times. Those details help tell us what the market is actually doing.

Both directions

Your Zestimate could be too low. It could also be too high.

The good news version

When the estimate is too low

Sometimes an automated estimate doesn't fully recognize the improvements a homeowner has made. Zillow itself notes that incomplete or incorrect property information can affect a Zestimate, and that unreported additions, updates, or remodels may not be reflected in the available data.

Maybe you added:

  • A finished basement
  • Additional bedrooms
  • A remodeled kitchen
  • A new roof
  • A large detached garage
  • Significant landscaping
  • RV parking
  • A major interior renovation

Those things may change how buyers perceive your home. That doesn't automatically mean every dollar you spent comes back dollar-for-dollar. But it absolutely means the house deserves a closer look.

The harder conversation

When the estimate is too high

If Zillow says $600,000, naturally you don't want to hear that the market may actually be closer to $550,000. I get it. Nobody wants to feel like they're leaving money on the table.

But pricing a home isn't about choosing the number we like the most. It's about looking at the evidence.

If similar homes are selling for $550,000 and buyers can purchase comparable — or better — properties for $550,000, listing yours at $600,000 doesn't automatically make it worth $600,000.

It may simply make buyers choose something else.

The feedback loop

And the market will eventually tell us.

This is something I tell sellers often: the market will tell us how your home is priced.

If a home goes live and almost nobody schedules a showing, buyers may be rejecting the value before they ever walk through the door. If we're getting showings but consistently no offers, buyers may like the property — just not enough at that price. If we're getting strong activity, repeat showings, and offers, we're probably much closer to where the market sees the value.

That feedback matters. Because ultimately, your home's market value isn't determined by Zillow. It isn't determined by me. And unfortunately, it isn't determined by what we need to make from the sale.

It's determined by what a qualified buyer is willing to pay — and what the market supports.

Read: Is Your Home Overpriced? Buyers Will Tell You →

The balanced answer

So should you ignore Zillow?

No. Use it.

Look at your Zestimate. Follow the changes. Check your property information and make sure Zillow has accurate details about the home.

Just don't make a major financial decision based on one automated number. Zillow itself describes the Zestimate as a starting point, not an appraisal.

If you're seriously considering selling, that's when I think it makes sense to go deeper. Let's look at the homes that actually sold. Let's look at what you're competing against today. Let's look at the things that make your property different. And then let's decide together what the market is actually telling us.

Because there can be a pretty big difference between "Zillow says my home is worth…" and "here's what buyers are actually willing to pay for it."

A straight answer

Curious what your home would actually sell for?

If you're in Nephi, Mona, Santaquin, Payson, Spanish Fork, or the surrounding area, I'd be happy to take a look at your home and put together a realistic market analysis.

No pressure to list. No inflated number just to win your business. Just an honest look at the current market, your competition, and what I believe buyers are likely to pay.

Questions sellers ask

Zestimates, CMAs, and pricing — FAQ.

No. Zillow itself says a Zestimate is not an appraisal. It's an automated estimate built from public records, MLS data, and comparable sales. An appraisal is performed by a licensed appraiser who physically evaluates your home, and a Comparative Market Analysis (CMA) from a Realtor compares your specific property to what buyers are actually paying right now.

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