Greg's Corner

Tagged: Zestimates Toggle Comment Threads | Keyboard Shortcuts

• 

  Geebo 8:54 am on August 28, 2017 Permalink | Reply
  Tags: lawsuit ( 47 ), real estate ( 128 ), Zestimates, zillow ( 15 )   

  Zillow has Zestimate lawsuit thrown out 

  

  Back in May, we posted how real estate site Zillow was being sued over their ‘Zestimate’ feature. The lawsuit claimed Zillow’s estimates were undervaluing the homes which were being sold on Zillow and that Zestimates were a de facto appraisal. In Illinois, where the suit was filed, all real estate appraisers have to be licensed in the state.

  Zillow can breathe a zigh of relief for now, as the lawsuit has been dismissed by a U.S. District Judge in Chicago. The judge ruled the portmanteau of Zillow and estimate, creating Zestimate, clearly shows consumers it is an estimate and not an appraisal and Zestimates were just a starting point for people looking to buy a home. The judge also ruled Zillow did not violate Illinois’ Real Estate Appraiser Licensing Act.

  The plaintiffs will no doubt try to file an amended lawsuit since they still claim Zestimates are affecting property values negatively.

   

  Leave a ReplyCancel reply
• 

  Geebo 9:03 am on May 12, 2017 Permalink | Reply
  Tags: real estate ( 128 ), Zestimates, zillow ( 15 )   

  Zillow faces lawzuit over Zesitmates 

  

  National real estate listing site Zillow has a feature on their site called ‘Zesitmates’. These Zestimates, as the name implies, are price estimates for real estate listings. According to their website, Zillow says Zestimates are not an appraisal, but are a starting point in determining a home’s value. The Zestimates are based on a proprietary algorithm that takes user provided information and other local prices into account. Sometimes the Zestimate numbers don’t match with the actual value of the home or the price being asked by the homeowner. This sometimes vast disparity in numbers has now led to a lawsuit against Zillow.

  An Illinois homeowner has filed the suit claiming Zillow’s estimate was $60,000 less than the home is worth. The suit claims that Zillow determined this valuation by using the prices of newly built homes in their area but not quite in their neighborhood. The homeowner feels the Zestimate has limited the market potential on their home.

  Is this lawsuit warranted? Well, yes and no. While it doesn’t appear Zillow has acted with any real malice, they had to know their Zestimates could affect the market values on some homes. While Zillow may claim their Zestimates are only a starting point, they have to know a lot of potential buyers are going to use the Zestimates as a de facto appraisal no matter how many warnings they post.

  Zillow has Zestimate lawsuit thrown out | Greg's Corner is discussing. Toggle Comments