Using a realtor is generally better for navigating the complexities of buying or selling a home, while Zillow is superior for initial research and browsing. Realtors provide expert negotiation, market insights, and access to all MLS listings (including pre-market homes), whereas Zillow offers a more user-friendly interface and Zestimates for instant, though sometimes inaccurate, home values.
Buyers who go it alone may save some money in commissions. However, there are serious downsides and risks to consider. While it used to be that sellers paid the homebuyer's agent, a recent industry change means homebuyers may need to pay their own agent's commission fees.
Zillow is free — but your agent isn't
The nationwide average real estate commission rate is 2.82% for listing agents. However, you can pay less without sacrificing service by using a discount real estate broker. These brokers provide services comparable to traditional firms — but at lower rates.
Appraisals. Zillow admits on its own site that the nationwide median error rate for off-market homes is around 6.9%. That means if your home is worth $500,000, your Zestimate could be off by more than $34,000—and you wouldn't know it.
The most accurate online home estimate
To calculate the Redfin Estimate, we combine hundreds of data points about the market, the neighborhood, and the home itself—all to provide you with the most accurate home-valuation tools.
So it is perfectly reasonable to expect that their estimates will be a little bit inaccurate (and occasionally very inaccurate). According to Zillow's website, the median error rate of a Zestimate is 4.3%. What this means is that Zillow's estimate is within 4.3% of the home value about half the time.
3 years past: Study past trends to predict future growth. 3 years future: Identify upcoming developments that can boost value. 3 properties nearby: Evaluate comparable properties for smart pricing.
Are Zestimate usually higher or lower than others? Zillow's Zestimate can be higher or lower than other estimates of a home's value, depending on the specific property and the local real estate market.
Listing Sources
Zillow includes MLS data as well as for-sale-by-owner listings, which can expand reach but introduce inconsistencies. Realtor.com focuses on MLS-sourced, agent-represented listings, prioritizing accuracy over breadth.
This phenomenon aligns perfectly with the 80/20 rule in real estate, which states that roughly 80% of an agent's sales come from just 20% of their efforts. Analyzing transaction volumes, sales figures, and commissions reveals that focusing on high-yield activities and clients can dramatically impact an agent's success.
Zillow's biggest competitor is Redfin, an online real estate brokerage that provides home value estimates and other tools for home buyers and sellers.
The 7% rule is a general investment guideline often used by real estate investors to estimate whether a property will generate a good return. It suggests that a property should bring in at least 7% of its purchase price in annual net returns to be considered a strong investment.
The worst time to sell a house typically falls between late fall and early winter, specifically November through January. Market data consistently shows these months have the lowest seller premiums, with October hitting just 8.8 percent above market value compared to May's 13.1 percent premium.
Zillow's new rule just changed everything. 🏡 Zillow now requires any home that's marketed publicly (signs, social media, etc.) to be listed in the MLS within 1 business day — or it gets blocked from Zillow and Trulia for the entire listing period. What does this mean for you? 🧭 For sellers: No MLS = no Zillow exposure.
Zillow's estimated home value should be used as a starting point, but it shouldn't be the only data you use in determining a home's value. The Zestimate is based on a sophisticated and proprietary algorithm which calculates both public and user-submitted data to estimate a valuation range for homes.
The best way to estimate your closing costs is to review the Loan Estimate provided to you by your lender during the loan application process. You can also check out Zillow's closing cost calculator for an accurate estimate.
Don't rent unseen unless you've verified the property with a trusted source. Beware: Red flags include unusually low rent, claims of urgency, and requests for payment before you've seen the rental.
Professional Appraisal Necessity: Most importantly, Zestimates are not a substitute for a professional appraisal. Relying solely on Zillow can lead to unrealistic expectations and potentially disappointing financial decisions, especially in transactions involving loans that necessitate formal appraisals.
Realtor.com heavily relies on MLS data and public records, whereas Zillow integrates user-submitted information and broader market trends. Each platform may also interpret local market conditions differently, resulting in varying property value estimates.
Many house hunters wonder how far their salary will go when it comes time to buy. A household earning $70,000 — about $10,000 below the median U.S. salary — could comfortably afford to spend about $257,000 on a house, assuming they put 20% down on a 30-year mortgage with a 6.5% rate.
Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.
Here are some qualities to keep an eye out for: misaligned doors, cracks in the walls, sloping in the floor, and the windows are hard to open or has cracked glass. If you notice a lot of these qualities during a house tour, have an inspector take a look at the foundation before committing to the home.