Market Outlook: Is AI Coming for Your Zestimate?

Marketly Team • June 25, 2025
Survey: Buyer’s Remorse Rooted in Surprise Property Issues

Why real estate still needs real people—no matter how smart the algorithm gets


The rise of AI is reshaping everything—from how we write to how we search to how we buy. In real estate, companies like Opendoor, Redfin, and Zillow are actively embracing automation, launching tools that promise smarter valuations and more “data-driven” decisions.


But here’s the truth: AI can enhance the process, but it can’t replace people. Especially not when it comes to one of the most emotionally nuanced, fast-moving, high-stakes assets most people will ever own.

Zillow’s New “Offer Strategies” Tool: Helpful or Harmful?


One of the most talked-about tools this year is Zillow’s Offer Strategies, which uses algorithms to suggest how much above or below asking a buyer should offer based on recent market data.


Sounds smart, right? In theory, yes.


But here’s the catch: these recommendations are based on past sales, not what’s happening right now. They don’t account for that home down the street that just got 12 offers, or the one that’s been sitting because of poor lighting and dated design. They don’t talk to the listing agent. They don’t walk the neighborhood.


And they definitely don’t understand buyer psychology, local nuance, or market momentum. We do.

The Problem with Predictive Pricing


Zestimates, Redfin Estimates, AI-powered valuation models—these tools all rely on inputs that cannot fully capture a property’s story or the current emotional climate of a market.


A Zestimate doesn’t know:


  • If the neighbors just remodeled and raised comps
  • If a school district line changed last month
  • If buyer activity has surged in the last two weeks due to inventory tightening


Only someone on the ground can speak to those things. And in this market, details like that can mean tens or hundreds of thousands of dollars in final outcome.


What AI Can’t See—and Never Will


At its core, real estate is emotional. Buyers make decisions based on how a home makes them feel. Sellers want to know their home is understood, not just calculated.


That’s where real estate professionals come in—not to fight the data, but to add context to it.


  • AI might suggest an offer.
  • A great agent explains why it will or won’t work.
  • AI might estimate value.
  • A great agent understands perceived value—and how to elevate it.


Ready for real answers in real time?

Zillow’s tools won’t walk your property. AI won’t adjust your pricing based on the five offers that came in across the street yesterday. We will.


Let’s talk—and build a strategy that reflects what’s actually happening in your market, right now.


Connect with us
Top San Francisco bay area Real estate agent - Caroline k. Huo's take on market trend

MY TAKE

Caroline's take on what you need to know

Tech will keep evolving. But so will markets. And no algorithm, no matter how advanced, can feel the heartbeat of a neighborhood, decode buyer urgency, or navigate the interpersonal dynamics that happen between agents during negotiations.


That’s not old-fashioned—it’s essential.


So yes, explore the tools. Be informed. But don’t confuse data with strategy.


Real estate isn’t just about what’s sold—it’s about what’s next. And that’s something only real people truly understand.


Let’s connect. I’d love to help you align your next move with your vision for the future.—contact us today!


Market Report June 2025

Here's the latest January 2025 Market Update showing year-over-year data. The data includes all Single-Family and Condo & Townhomes in the California Area sourced from Broker Metrics & Info Sparks for the period from January 2025 thru March 2025. This may include preliminary data and may vary from the time this data was gathered. All data is deemed reliable but not guaranteed.

FOR NEWS INQUIRIES


Kyle Henry

Director of Marketing


Kyle.H@CarolineHuo.com

650.727.1308

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By Caroline Huo September 30, 2025
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