If you’ve ever typed your address into Zillow, you’ve probably seen a number pop up that made you feel either excited… or very confused.
Some homeowners see a Zestimate and think, “Great — I’m sitting on a gold mine.”
Others look at it and say, “There’s no way my house is worth that much…or that little.”
The truth is, Zillow can be a starting point — but it often gets New Orleans homes wrong. And in some cases, it gets them very wrong.
I’ve been buying houses across the New Orleans metro area for over 20 years, and one of the first conversations I usually have with sellers starts with, “Zillow says my house is worth…”
Let’s talk about why those numbers are often misleading, and what actually determines what your house is worth here.
Zillow Doesn’t See Condition — And Condition Matters a Lot
Zillow’s biggest flaw is that it doesn’t know the real condition of your house.
It doesn’t know if:
· The roof is 20 years old
· The AC is barely hanging on
· The wiring is outdated
· There’s termite damage
· The foundation has issues
· The house needs a full renovation
Zillow assumes an “average” condition — and most homes here are not average.
Two houses on the same block can have wildly different values depending on maintenance and repairs. Zillow can’t see inside your walls, crawlspace, or attic — but buyers and inspectors will.
Zillow’s other biggest flaw, and this is specific to the New Orleans area, is that it is based on algorithms. It uses market data to determine home values. A logical way to go about it, right? Well yes, generally speaking, but the metro New Orleans area requires precision when determining comparable homes and home values. Things change from block to block. It’s like a checkerboard around here. Values jump from block to block. Even in the suburbs this is true. Not quite as true as Urban New Orleans, but definitely a factor that a machine can’t understand unless it has the bounding lines programmed, which Zillow does not.
In New Orleans for example, the 1500 block of 3rd St is going to have a tremendously different value than the 1900 block. In Metairie, once side of Causeway Blvd is going to be a lot more valuable than the other. But these are all within a tenth or 2 of a mile. Well within acceptable limits to use comparable homes to determine a market value of a house. That acceptable range is usually 6 months and half a mile. Half a mile in the New Orleans metro area is like 5 miles in any other major city.
Other online platforms are pretty much exactly the same. Not only can they not determine your houses condition, they can’t accurately ascertain market value in a unique market like New Orleans.
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Zillow Doesn’t Understand Older Homes Well
A large percentage of homes in New Orleans are 50, 75, or even 100+ years old. These houses have charm, but they also come with quirks that automated software struggles to account for.
Things like:
· Pier-and-beam foundations
· Additions done decades ago
· Historic construction methods
· Non-standard layouts
Zillow’s algorithm works much better in subdivisions full of similar homes. In older neighborhoods, values can vary dramatically from house to house — even on the same street.
Zillow Ignores Financing and Insurance Reality
This is a big one right now.
Zillow doesn’t factor in whether a typical buyer can:
· Get insurance on the property
· Get a lender to approve the loan
Roof age, electrical systems, plumbing materials, and prior claims all affect insurability — and therefore value. If buyers can’t get insurance or financing, the pool of potential buyers shrinks fast.
That directly impacts what a house is actually worth in the real world.
Zillow Uses Past Sales — Not Current Buyer Behavior
Zillow looks at recent sales, but it doesn’t fully adjust for changing buyer behavior.
Interest rates, insurance costs, and repair expenses have all gone up significantly. Buyers today are more cautious, more selective, and less willing to take on big projects unless the price reflects it.
A house that sold easily two years ago might struggle today — even if Zillow hasn’t caught up yet.
Zillow Can’t Account for Motivation or Timeline
Value isn’t just about the house — it’s about the situation.
Zillow doesn’t know if:
· You need to sell quickly
· You’re dealing with inheritance or succession
· The house is vacant
· You’re relocating
· You’re tired of dealing with repairs
A homeowner who wants top dollar and has time will approach the sale differently than someone who wants a clean, fast exit. Zillow gives one number, but real life isn’t one-size-fits-all.
What Actually Determines Your Home’s Value Here
In the real world, a home’s value comes down to:
· Condition
· Location
· Repair needs
· Buyer type (financed vs. cash)
· Insurance and financing feasibility
· Timeline and motivation
That’s why two sellers with similar houses can end up with very different outcomes.
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Zillow vs. a Real Cash Offer
Here’s something important to understand:
Zillow gives you an estimate.
A cash buyer gives you a real number they’re willing to close at.
When I make an offer, it’s based on:
· Walking the property
· Understanding the repairs
· Accounting for insurance and construction costs
· Knowing what it will actually take to sell or renovate
· Understanding the immediate surrounding area and knowing how to determine an accurate market value.
There’s no guessing. No algorithm. No assumptions.
That doesn’t mean a cash offer is right for everyone — but it is a realistic picture of what the house is worth as it sits today.
Final Thoughts
Zillow can be a useful tool, but it shouldn’t be the final word on what your New Orleans home is worth. It’s nice to look online and see a big number for your home. It feels good. But is it reality?
If you’re serious about selling, the most important thing you can do is get a value based on:
· Real condition
· Real buyers
· Real market conditions
Whether you list traditionally, make repairs, or sell as-is, understanding the difference between an online estimate and real-world value can save you time, frustration, and disappointment.
If you’d like to talk through your options or get a no-obligation cash value for your house, I’m always happy to help.
Sometimes the most accurate number isn’t online — it comes from experience and local knowledge and know-how.
NOLA Buys Houses
504 264 1407