Why AVMs Are Pure Fiction in Divorce Property Valuations

When it comes to dividing property in a divorce, the stakes are high. Your home is often one of the most valuable assets you own—and getting its value right is critical. That’s why it’s important to know that automated valuation models (AVMs), such as Zillow’s “Zestimate,” Redfin’s Estimate, and other online calculators, are not reliable sources for determining property value in a divorce.

What is an AVM?

An AVM is a computer-generated estimate based on public records and general market data. While that may sound high-tech, these tools are essentially blind to the actual property. They:

• Can’t walk through the home to assess condition.
• Don’t know if you just remodeled your kitchen—or if your roof is leaking.
• Ignore location-specific details like views, lot desirability, or the impact of a particular school district.
• Fail to account for subtle “micro-market” changes that affect pricing.

Simply put: AVMs don’t have the full picture.

Even Zillow Says It’s Just a “Starting Point”

Zillow itself warns that the Zestimate is only a starting point, not a substitute for an appraisal or professional opinion. In fact, Zillow publishes its own accuracy data—and it’s eye-opening.

Here’s what you’ll find when you dig into the “Off Market” numbers (the most relevant for divorce cases where the home is not listed for sale):

• Less than 50% of Zestimates are within 5% of the final sale price.
  • For a $600,000 home, that means the estimate is within $30,000 less than half the time.
• In unusual or data-poor markets, errors can exceed 20%.
• The overall median error rate is another 7%—on top of everything else.

Those aren’t numbers you can take to court with confidence.

Why This Matters in Divorce

Property division in divorce must be defensible—especially if the case goes before a judge or into negotiations. AVMs can swing tens of thousands of dollars in either direction, creating false expectations and fueling conflict.

No lender, appraiser, or real estate professional would use an AVM to determine actual market value in a legal, lending, or underwriting setting. In divorce, the stakes are just as high—if not higher.

The Right Way to Value a Home in Divorce

If you need a home valuation for divorce, you have two credible options:

1. Formal Appraisal – Conducted by a licensed appraiser who visits the property, evaluates its condition, and compares it to similar recent sales.
2. Comparative Market Analysis (CMA) – Prepared by a qualified real estate professional who has personally inspected the home and understands the local market.

Both options give you an accurate, defensible value—something an AVM simply can’t deliver.

Bottom Line:

In divorce, AVMs are pure fiction. They may be fun to look at online, but they are junk data when real money, property rights, and fairness are on the line. If you want a valuation that will stand up in negotiations or court, skip the Zestimate and call a professional. (This information was provided courtesy of Shannon Lindstrom, Realtor, AHWD,CDRE,MILRES,MRP,VCA RE/MAX Results)

If you have questions about how your home or other real estate should be valued in your divorce, the experienced team at Mundahl Law, PLLC can help. We understand the importance of accurate, defensible property valuations and can guide you through the process to protect your financial interests. Call us today at 763-575-7930 to discuss your situation and get the clarity you need before making important property settlement decisions.