I recently went on a listing appointment with a Knoxville family who is getting ready to sell. Before we met, they did what most homeowners do and checked Zillow®. The Zestimate® on their home was around $700,000.

After doing my research, I believe their home is worth over $900,000.

That is nearly $200,000 that the algorithm left out, and I want to explain why, because the same thing could be happening with your home right now.

What Zillow® Cannot See

Zillow® pulls comps from a wide area, and it does not know the difference between one builder and another in the same zip code. In this case, the algorithm was pulling homes from a neighboring subdivision with a completely different builder and lower-grade finishes. On paper, those homes look comparable. In person, they are not even close.

Think of it like shopping for dress shoes. You can find two pairs at the same price point with the same description on the tag, but one is Cole Haan and the other is not. They are not the same shoe, nor are they the same home.

This family has put nearly $50,000 into their home since they moved in — hardwood floors, custom built-ins, a screened porch, designer fixtures, and a converted bonus room with full HVAC. None of that shows up in a Zestimate®.

What Showing Up Looks Like

The same day I went to this family’s appointment, I toured an open house in the neighboring subdivision. That home was listed around $875,000, had an extra bedroom, but the exterior was vinyl on three sides, and the lot had no real yard. It was a nice home, but it was a different product at a lower quality level.

I have sold eight homes in this family’s development. I know the builder, I know which floor plans buyers compete for, and I know that the home directly across the street just appraised for nearly $1 million. That context is not available on any website, which is why the Zestimate® was off by $200,000.

Why This Should Matter to You

The number you start with sets the ceiling for what you walk away with. If you are basing your expectations on a Zestimate®, you are making your biggest financial decision on data that cannot distinguish your home from the one down the road.

For this family, that gap is nearly $200,000, representing their next down payment and their children’s stability as they relocate to a new city.

This home has not hit the market yet, and I will share the rest of the story when it does.

Talk With Susan Today — 865.591.9204

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