07/30/2026
For years, Zillow has led sellers to believe that getting their home on Zillow.com was important to sell their home. But new research by our Chief Data Officer and Chief Economist shared earlier this week analyzing over 300,000 homes revealed: homes on Zillow sold for 1.3% less. We call this loss the “Zillow Tax.”
When Zillow.com displays negative insights on your home like days on market, price cut history, algorithmic Zestimates less than the home’s value, climate risk, flood risk, and fire risk (all unofficial risk scores), money gets left on the table.
The “Zillow Tax” isn’t inevitable. Sellers have a choice. By choosing a phased marketing strategy, sellers can test price, receive feedback, build buyer interest and create buyer urgency before the days on market clock starts to reduce risk.
I encourage every real estate professional to share this with their clients in listing presentations and on social media.
