Why Is Zillow Being Sued?

Zillow is being sued, and the reason why will make you think twice about relying on them for an accurate home valuation.

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.

We all know that Zillow’s Zestimates aren’t very accurate.

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. 

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.