Lawsuit Zings Zillow’s Zestimate
Legal Troubles for Zillow
The online real estate marketing company Zillow has rapidly made a name for itself by providing easily accessible estimates for home values. Just key in an address, and up pops a property description and a dollar figure.
The trouble is, according to a lawsuit recently filed against Zillow, is that the so-called Zillow “Zestimate” is too easily confused by potential buyers as a real appraisal. And that’s a real problem if Zillow’s figure is not in line with the genuine market value. Resulting expectations fr would-be buyers can become hard to resolve.
Not an Appraisal
To Zillow’s credit, the firm doesn’t call the Zestimate an appraisal, and it provides a disclaimer as to the accuracy of its figures. In fact, the Zillow Zestimate lands within five percent of the actual sale price 53.9 percent of the time.
The lesson to be learned: by working with a local, professional Realtor, both buyers and sellers can be more confident they are working with price figures that stand up to scrutiny.