How to Spot a Home Listed Below Market Value on Zillow
Patrick Bushe
April 1, 2025 · 5 min read
Underpriced homes do appear on Zillow: estate sales, sellers who need to move quickly, listings that missed recent price rises. The trick is spotting them quickly and confirming they're real deals rather than homes priced low because of a serious problem. This is general information, not financial advice.
Signs a listing may be below market
- Low price per square foot compared with similar homes nearby.
- Weak listing: few or poor photos, a short description, typos. Fewer buyers notice it.
- Words like "as-is", "estate sale" or "motivated seller" in the description.
- Recent price cuts, especially several in a row.
- Long time on the market in an area where homes usually sell fast. See days on market explained.
- Foreclosures and auctions, which carry their own risks. See foreclosure listings explained.
Scan quickly
Zillow Price/SqFt adds a price per square foot badge to every listing card in your search, colored by range, so homes priced well below their neighbors stand out at a glance. Set up alerts to see new listings first. See setting up Zillow alerts.
Confirm with sold homes
- On Zillow, filter to Sold homes in the same area from the last three to six months.
- Find homes with similar size, bedrooms, age and lot.
- Compare their sale prices per square foot with the listing.
- Adjust for condition: a renovated comp sells for more than a dated one.
Asking prices of other listings matter less than what homes actually sold for.
Check the history
A listing's price history shows past sales, previous listings and price changes. A home bought recently and relisted lower, or listed and withdrawn several times, deserves questions. See reading Zillow price history.
Low for a reason?
- Condition: foundation, roof, plumbing or electrical problems.
- Location: a busy road, railway or commercial neighbor.
- Risk: flood zones, wildfire areas and rising insurance costs.
- HOA problems: high fees, special assessments or lawsuits.
- Title or legal issues, common with foreclosures.
Move fast, verify carefully
- Get pre-approved so you can make a quick offer.
- Never skip the inspection on a "deal".
- Ask a local agent for a comparative market analysis.
Don't rely on the Zestimate alone to judge value. See why the Zestimate can be off.
