how is home value estimated?

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zillow is showing that my house is worth less then some of my neighbors-my square footage is larger, as is my lot size, I have a half bath more than them, a two car garage when they have one, my house was also remodeled in 2005. So I guess my question how does zillow create this zestimates? My house was appraised for $70,000 more than what they are showing.
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February 17 - Marysville
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