Zillow is being sued, and the reason why will make you think twice about relying on them for an accurate home valuation.
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Last month, a lawsuit was filed against Zillow by a homeowner in Illinois who claims that her home’s Zestimate created a roadblock to her selling it at the price she wants.
She listed her home at $626,000, but it’s Zestimate only values it at a little over $560,000. This homeowner says homes are selling on her street for more than $600,000, but just because her home’s Zestimate is so much lower, it’s scaring buyers away.
We all know that Zillow’s Zestimates aren’t very accurate. Zillow says they’re just a valuation, but the homeowner claims they’re acting like an appraiser without an appraisal license. 89.7% of the time, Zillow claims their Zestimate will be within 20% of your home’s value. On a $500,000 home, that’s a difference of $100,000 one way or the other. At that point, I think you’re better off reviewing your tax record and looking at what Uncle Sam assessed your property for.
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It will be very interesting to see how this lawsuit plays out. At the same time, if you ever need a real appraisal or an accurate assessment of what your home would sell for and how long it would take, have a professional such as myself do it.
We all know that Zillow’s Zestimates aren’t very accurate.
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If you have any questions about Zillow or any other real estate topic, don’t hesitate to give me a call. I’d be happy to speak with you.
