The Truth About Zillow: What They Don’t Tell You (And Why Even Zillow Doesn’t Trust Zillow)
By Wyatt Poindexter, Managing Partner, The Agency Oklahoma
Let’s have an honest conversation about the big blue “Z” — the self-proclaimed real estate oracle known as Zillow. You know the one. It’s where people go at 1:00 a.m. in pajama pants to see what their house might be worth after watching three episodes of HGTV. It’s also where buyers spend hours scrolling through listings that are already under contract, and sellers refresh their Zestimate like it’s a stock ticker.
Now, before we go too far, let’s clear the air: Zillow has built a beautiful website. It’s slick. It’s easy to use. And their marketing department deserves a medal for convincing half of America that they know the value of every home in the country — down to the penny — from their laptop in Seattle.
But here’s the truth they don’t want to put on their homepage:
Zillow’s Zestimates are wrong. Constantly. Gloriously. Hilariously wrong.
When the Algorithm Met Reality
A few years ago, Zillow decided to prove how accurate their pricing algorithm was by launching Zillow Offers, a home-buying division where they used their own Zestimates to purchase real houses — with real money. Spoiler alert: it did not end well.
They lost $881 million dollars and wiped out $40 billion in stock value, all because their algorithm told them they were making smart buys. Turns out, the algorithm flunked basic real estate economics.
And if that’s not poetic enough, the Zillow CEO himself sold his personal home for 40% less than his own Zestimate. Yes, the guy running the company didn’t even believe in his own math.
So next time you check your Zestimate, remember — even Zillow doesn’t trust Zillow.
The Secret Zillow Doesn’t Tell You About “Contact Agent” Buttons
Here’s another fun fact most people don’t realize.
When you find a listing you love on Zillow and hit that tempting little “Contact Agent” button, you probably assume you’re reaching the listing agent — the person who actually knows the home, the seller, the upgrades, and the details.
Wrong.
That message doesn’t go to the listing agent. Instead, Zillow sells “zip codes” to agents who pay monthly to get leads. Your message gets sent to a random Realtor who paid for that zip code — not the one representing the property. They may not know a single thing about the home you just inquired about.
Think about it. You just poured your heart into writing a message about your dream home, and Zillow sent it to a stranger who might live 40 minutes away.
It’s like trying to book dinner at a five-star restaurant and having your reservation confirmed by a guy who owns a taco truck three towns over.
Why This Matters to You
Here’s the problem: that random agent has zero context about the property. They might not even know it exists until your inquiry pops up. That means inaccurate answers, wasted time, and potentially missed opportunities — especially in today’s competitive market.
The best move you can make as a buyer is to go straight to the listing agent.
They know the property. They can give you accurate information. And in some cases (I know some agents won’t like me saying this), contacting the listing Realtor directly can even help you save money.
What About Zillow Flex Teams?
Ah, Zillow Flex Teams. This is Zillow’s latest experiment to keep agents hooked. They “partner” with select Realtors and then take a massive referral fee from every deal those agents close — often 35% or more.
It’s a business model that makes sense for Zillow, but not necessarily for you. That fee ultimately gets absorbed somewhere — in reduced negotiation flexibility, slower communication, or the simple fact that you’re dealing with agents more focused on feeding the algorithm than serving your needs.
The Zestimate Problem (Part Two)
Zillow’s Zestimates are built on algorithms that don’t walk through your home, don’t see your upgrades, and don’t know that your neighbor’s house sold for less because they painted their living room lime green.
They’re based on tax data, public records, and sales averages — which means they can be off by tens or even hundreds of thousands of dollars. In real estate, that’s not a rounding error — that’s the difference between a sale and a stale listing.
Zillow has admitted their own margin of error is roughly 6.9% nationally, but in many local markets, it’s closer to 20% or more.
So if your $800,000 home shows a Zestimate of $640,000, don’t panic. If it shows $960,000, don’t quit your day job just yet. Either way — call a professional.
What You Should Do Instead
Use Zillow as a tool, not a truth. It’s great for browsing listings, photos, and getting a feel for trends. But when it comes to actual value, talk to someone who’s in your market every day — someone who knows what’s selling, what’s sitting, and why.
That’s what professional Realtors do.
At The Agency, we combine global marketing, local expertise, and real data — not algorithms — to price properties accurately and get them sold. Our listings are featured worldwide through The Agency’s international PR network, and we provide honest, data-backed advice whether you’re buying or selling.
If you’re ready for real information, not robot math, let’s talk.
Wyatt Poindexter
Managing Partner, The Agency Oklahoma
405-417-5466 | [email protected]
www.WyattPoindexter.com | www.TheAgencyRE.com
Bottom line: Zillow is great for looking — not for knowing.
The next time someone brags about their Zestimate, just smile and remember: even the CEO sold his house for 40% less.
