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Overrated is based on subjectivity or opinion, whereas overestimated is based on objectivity or fact. For example, if a friend advises you to see a particular movie because they thought it was so good, that's subjective or based on their opinion. Your opinion may or may not differ from theirs. However, if you take your car in for service and you're told it will cost $300 to fix, but after the work is done you're only charged $200, then the service center overestimated the cost, and that's objective or a fact, you only paid $200.

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