Does Zillow Lawsuit Affect Home Sellers?
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Does Zillow Lawsuit Affect Home Sellers?

So ever since Zillow and
National Association of Realtors had a falling
out there has been a huge conflict and it’s
between the realtor community and the giant real estate website Zillow, and this affects you if you’re thinking of selling your home. (rock music) Now depending on which side of the fence you’re on, this may be interesting. The Orange County Register is reporting the class action lawsuit
that has been certified and allowed to proceed forward against the Irvine-based corporation last week, and after 15 months of litigation, U.S. District Judge Josephine L. Stratton certified the case brought
by Zillow employees accusing the company with pressuring employees and committing repeated and systematic labor violations. Now according to the suit, employees were forced to come in early and work late without being paid overtime. The suit also claims employees were also forced to work through
lunch and rest breaks during the so-called advertising waves and blitzes in which employees allegedly were required to make non-stop
advertising calls to real estate brokers and their agents to sell advertising on the company’s website. Now employees complain that they were threatened with
termination, loss of wages, confiscation of commissions and bonuses. Other recent court actions
include allegations against Zillow for
alleged copyright theft, racial discrimination, and
sexual harassment lawsuits filed in Orange County
are all public records, so you can pick those up. Another Zillow lawsuit
was filed by a woman claiming she was unlawfully
fired after hospitalization. Now Zillow has denied, of course, all the accusations. Any former employee who believes they have been damaged by Zillow, they can contact Garragos & Garragos P.C. to file or participate in
any class action suit that’s going on. But the reason that this
affects the homeowner as a seller is because
something interesting has been happening. So maybe you’re aware, but the realtor community at large and Zillow have been clashing heads, they’ve been butting heads pretty
heavily over the last few months, and here’s why,
and this is my opinion, Zillow, and this is what
I’ve heard, is that Zillow has tried to undermine
the realtor community, now the realtor community, it is a large, big entity over you know several million, I believe it’s like
four and a half million active agents across the country are part of the realtor community. Do you think the realtor
organization wants to let all those membership dues go? No they don’t want to, of course not, so they’re gonna fight hard back. But Zillow’s been trying to undermine them and tell agents, “what do you need to “be part of that
organization for when you can “come and put your listings
for free on Zillow?” And the response has been is that the a lot of the MLSes and a lot of the other services that are out
there give data to Zillow have restricted some of that
data from what I’ve heard and this is making the properties show up on Zillow inaccurate and missing information. I’ve heard this from a lot of agents who are saying, you know,
“my listings are showing “up and I’ve gotta fight
with Zillow to get them to “correct that information,” and also they’re telling them,
“well, if you wanna pay “to become a premiere
agent, well then, that “problem will be solved and
you’ll be and it’ll be fixed.” This is what I’ve been told by agents. And so this is a problem because if you’re selling your house and you’re not working with somebody who
actually kinda understands what’s going on here,
then you’re gonna have inaccurate information
out there, you’re gonna have people showing up
and looking at your house that has that has expectations of what your house is that
doesn’t meet what it is. And so now you got the wrong audience looking at your house. Also, other issues to
consider with regard to Zillow is that they put
the Zestimate online, they’re actually one
of the first companies to put online valuations, and I just wanna point at this recent
article in L.A. Times, up here, Inaccurate Zillow ‘Zestimates’ a source of conflict over home prices. Yeah, absolutely. They are huge conflict over home prices, and I deal with this all the time, so here’s some examples. In New York County, the
median home valuation error rate is 19.9%,
in Brooklyn it’s 12.9, in Maryland it’s up to 42%, what do they call it,
error, valuation error, 42% holy smokes. Some parts of California it’s 26%, San Francisco 11.6%. So you can imagine if you take the value of your home and you put the wrong value on it, one way or the other, it is enormous, and I’ll give ya
a perfect case in point. I met with a lady today, and on one of the online valuations, it
wasn’t particularly Zillow, because we didn’t pull that one, what we estimated that
her house was worth, $700,000, it ended up
that they were reporting that it was worth $568,000
or something like that, and that’s a problem with
these online valuations. So Anthony, what do you do about it? How do you solve that problem? Well, it’s tough because this is something that I call buyer perspective. Buyer perspective is when a buyer shows up to a house and they’re standing there and they’re looking at their tablet or they’re on their phone outside the front yard after they’ve looked at
the house and just like “gosh, this is a house that I would like,” and then they go pop open a Zillow because they can know they can get a Zestimate from Zillow, and Zillow
says, “well, instead of “$700,000, the house is only worth 650.” In their mind, they assume that the people who are putting these complex algorithms together are some kinda rocket surgeon who can figure this out better than any real estate agent can or better than a homeowner can or better than the people in the community
who live there can, and therefore they must be right. So I’ve had this happen
several times where people are making offers based on what they’re seeing
reported on online sites that are giving their value. So, it’s your job, if
you’re hiring a real estate agent make sure you hire somebody who understands this concept
and is prepared to justify those values for your home so when you’re selling you get the top dollar every single time. Hey don’t forget to
like, subscribe, follow, whatever it is that, whatever wherever you’re seeing this and
be sure and check out if you wanna have huge, massive exposure to your house when you decide to sell, check that out and we’ll get your house and home sold really fast for top dollar. Take care.

One Comment

  • Media Vermin

    How does the seller get Zillow to change the inaccurate zestimate? If they refuse to adjust, Is there a way to sue them for damages?

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