Lawsuit: Zillow ‘Zestimates’ Are Wrong, Preventing Homes From Selling | NBC Nightly News
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Lawsuit: Zillow ‘Zestimates’ Are Wrong, Preventing Homes From Selling | NBC Nightly News


WAY OFF DRIVING DOWN
OFFERING AND THEY ARE
SUING. JO LING KENT EXPLAINS.
>>Reporter: BARBARA
SAYS THE INTERNET IS SCARING OFF BUYERS.
>>IT’S A HUGE ROAD
BLOCK TO SELLING THE HOUSE.
>>Reporter: AT THE
BEGINNING OF THE YEAR, POPULAR ONLINE REAL
ESTATE COMPANY ZILLOW
ESTIMATED HER HOME’S VALUE WAS $652,000.
A FEW MONTHS LATER IT
PLUMMETED BY $116,000, LANDING AT $90,000
BELOW HER ASKING
PRICE. >>THERE IS NO ABILITY
TO TELL ZILLOW STAY
AWAY FROM MY PROPERTY. >>Reporter: THERE ARE
110 MILLION HOMES ON
ZILLOW. IT’S OFTEN WHERE
PEOPLE ENCOUNTER THE
FIRST VALUE. SHE IS SUING ALLEGING
THEY ARE ILLEGAL
APPRAISALS AND VIOLATE CONSUMER PROTECTION
LAWS.
ZILLOW SAYS IT’S WITHOUT MERIT AND
REFUSES TO REMOVE HOME
PRICES AT BUYBUYER’S REQUEST BECAUSE IT’S
GATHERED FROM PUBLIC
RECORDS. >>LISTING AGENTS PUT
OPINIONS ON HOMES AND
BUYING AGENTS PUT OPINIONS ON HOMES AND
SO DOES ZILLOW.
>>Reporter: THIS WEEK, ZILLOW LAUNCHED
A $1 MILLION
COMPETITION FOR A BETTER ALGA RHYTHM TO
PROTECT HOME PRICES.
THE COMPANY SAYS THE CONTEST IS NOT A
RESPONSE TO THE
LAWSUIT AND CURRENT ZESTIMATES HAVE AN
ERROR RATE OF 5%.
>>THEY CAN BE OFF BY AS LITTLE AS 2 OR 3%
AND AS MUCH AS 40%.
>>Reporter: LOS ANGELES REALTOR SAYS
ZILLOW ESTIMATES CAN
BE HIGHER OR LOWER THAN THE ESTIMATE.

19 Comments

  • NightOwl16

    Your life savings are in that house? Well, next time don't buy a home that you can't afford and that you don't NEED! You could have been happier in a home a third of that price. This is why you shouldn't invest money in large half a million homes. It's ridiculous people!!!!

  • Nicholas Pietropaolo

    How hard is a Zestimate definition to understand? Taken directly from Zillow's website "A Zestimate® home valuation is Zillow's estimated market value. It is not an appraisal. Use it as a starting point to determine a home's value".
    Most of Zillow's information is formulated from inaccurate public records/assessments so her beef should probably be with the town assessor, not Zillow. The report does not mention if her property tax assessment is close to the asking price? Probably much lower……..
    Lawsuit is a joke and should be thrown out.

  • Mary-Ann Lane

    The Zillow Zestimate for the value of my home was 187.8K, on 6/28/17. FIFTEEN (15) DAYS LATER, after a change in realtors, the Zestimate changed to 110K. Public record change???? Nope. House hit by lightening? Tornado Damage? Fire? Fell into a sink hole? Nope, none of the above.

    The info posted by both realtors was the same……………Zillow claims an accuracy of within 5.7% in my county, but refuses to explain how my house, absent public record change or extensive damage, lost 70K+ in value, in the space of JUST TWO WEEKS.

    Then, in an email, they claimed that they had been "adjusting" their algorithm and that over some (unstated) number of weeks, the problem would be resolve. This, of course, occurred just before the first open house, sabotaging that venture. Meanwhile, I have been forced to drop the selling price, twice. Geez, even the tax valuation is 143K.

    Those who lay down will henceforward be known as doormats, and I refuse to let an arrogant, callous, obnoxious, money-bloated corporation, in violation of their OWN ethics statement, rob me of literally thousands of dollars, while their staff smirk behind their hands, laugh up their sleeves and their senior execs roll barrels of bucks into their big fat bank accounts.

    Complaints going out to Washington State's Consumers Affairs office (Zillow Group, Inc., is incorporated in the state of Washington, and to my OWN state's consumers' affairs office.

    Zillow, pay attention: ya can fool some of the people all of the time, and all of the people, some of the time, but ya can't FOOL ALL OF THE PEOPLE, ALL OF THE TIME! ALSO, LIARS NEVER PROSPER, FOREVER!

  • Kristina Smallhorn

    The Zestimates are a horribly inaccurate tool on the Zillow website. To be off as much as %40 is a terrible disservice to the buyers and sellers.

  • J RLOC

    Zestimates are typically off by more than 30% in my city. They are known to be so grossly inaccurate that realtors here warn clients early on to ignore them.

  • Joe Smartballs

    They ain't real estimates. When you change the price of the home it changes the estimate. If it was a real estimate the price would stay the same as you change your asking price. Zillow don't have a appraisers license, or a real estate license to own a website advertising homes for a second party. They need a real estate license in 50 states like Century 21.

  • Ilker k

    Wait a minute. She is using Zillow by her own will, which means she agrees all their terms. Then she is not simply removing her listing but sues them. Did I get it right?

  • otterlover95

    If the Zestimate were MORE than other sites predicted, would she ALSO sue? I doubt it. She's a whiny, sniffly baby. She even looks the part.

  • spartygrad89

    Zillow is a joke. They had my house at $320,000 which is in the center of the lake on a peninsula with water on 3 sides. The information was wrong so I updated it to reflect that I did have central air and a brand new boiler system with on demand hot water. The square footage was way off. Basically added value around $50,000 to the facts. They dropped my price down $165,000 and now have it comped with some shacks on a dirt road several miles away. I contacted them and they said it should fix itself in about 30 days. It's 6 months later and nothing. Good thing is, I have several people that want my one of kind location so it should sell for over $500,000 but it's just infuriating how their system is broken.

  • bodhi

    LOL im sorry…this is too funny from someone thats actually from the bottom 50% of usa…aw, you only got over half a million instead of over half a million for your 7 bedroom home?? give me a break.

    youtube.com/democracyatwrk

  • Paula Hayden

    I looked up the zillow value of my property. They said the value decreased by $3,500 in the last 30 days. The county taxes said my value increased by $4,000. Don't trust zillow.

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