Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Real estate website Zillow is facing class action accusations that its “Zestimate” valuation tool misrepresents properties’ real market values.
Plaintiffs Vipul and Jyotsna Patel and Schaumburg-area developer Castle Builders are bringing this Zillow class action lawsuit.
They claim Zillow’s Zestimate tool unlawfully publishes erroneous estimates of property values, misleading potential property buyers and monkeywrenching sellers’ efforts to sell their properties.
The Patels are represented by Illinois attorney Barbara Andersen. Anderson brought her own individual lawsuit against Seattle-based Zillow Group last month, claiming the company’s Zestimate misrepresented the market value of her own home in Glenview, Ill. Andersen has since voluntarily dismissed her own claim so that she can represent the Patels and Castle Builders in this Zillow class action lawsuit.
Zillow is a real estate marketing website. Its Zestimate tool generates an estimated value for a given property, whether or not that property is on the market, by applying a proprietary algorithm to publicly-available information, such as statistics from county assessor’s records. The property’s Zestimate value is published on the Zillow website.
The Zestimate feature alone reportedly draws millions of viewers to Zillow’s website. That creates enormous marketing value for Zillow, which monetizes that viewership by selling advertising to real estate agents. As a result, Zillow’s quarterly revenues reach into the hundreds of millions of dollars.
But property owners have been criticizing Zestimates for years, claiming they can be wildly inaccurate. Zillow itself admits to a median error rate of five percent, but critics say the resulting estimates can be 30 percent or more off the mark from a given property’s actual market value.
Zillow insists that its Zestimate is not an appraisal. The company characterizes Zestimates as merely a “starting point to determine a home’s value.”
Andersen strongly disagrees. She argues that by publicizing an estimated value for a property, Zillow subjects itself to the laws governing professional real estate appraisers – laws that impose licensing requirements and obligations of confidentiality.
The standard appraisal process also affords property owners the right to challenge the appraiser’s valuation process, Andersen says. She alleges that Zillow doesn’t offer a comparable process to allow correction of a Zestimate.
The Patels claim that potential home buyers treat a Zestimate as a formal appraisal, whether it is one or not. They complain that Zestimates are frequently 20 percent lower than the property’s fair market value, setting up unrealistic expectations in potential buyers’ minds.
Before Andersen refilled this Zillow class action lawsuit on behalf of the Patels and Castle Builders, she accused Zillow of publishing a misleading Zestimate of her own home’s value. The alleged undervaluation has been a substantial obstacle in her attempts to sell the home, she claims.
Andersen says Zillow erroneously stated that her home sold in the fall of 2016 for $685,000. A more recent Zestimate publicized the home’s value at $562,000, she alleges, giving the false impression of a $90,000 drop in value in only six months. The property’s Zestimate value has purportedly dropped even lower since then.
Andersen says she repeatedly contacted Zillow, trying to get them to correct or remove the allegedly erroneous Zestimate. The company ignored her contacts, she claims.
Anderson is still trying to sell her home. She has posted an asking price of $626,000, but a recent Zestimate says the property is worth only $537,788.
The Zillow Zestimates Class Action Lawsuit is Patel, et al. v. Zillow Inc., et al., Case No. 1:17-cv-04008, in the U.S. District Court for the Northern District of Illinois.
UPDATE: On Oct. 18, 2017, for a second time, Zillow asked an Illinois federal judge to dismiss a class action lawsuit that claims Zillow’s “Zestimate” tool is misleading. In its motion to dismiss the amended Zestimate lawsuit, Zillow argued that the plaintiffs’ amended complaint also fails to state a viable legal claim.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
36 thoughts onZillow Class Action Says ‘Zestimate’ Misrepresents Property Values
I would like to join this suit
I have tried for months to get Zillow to correct information they are putting online about my home
They refuse to correct it and they also refuse to remove it from the site
My home is undervalued by almost 100k
I am having similar problem with Zillow. Even though they have acknowledged that their is a bug in their software that’s reducing my home value by over $125K they have been unable to fix it or remove the zestimate. I have been following up with them for last 8 months with no results. I have the whole email thread with all the details.
I am having similar problem with Zillow. Even though they have acknowledged that there is a bug in their software that’s reducing my home value by over $125K they have been unable to fix it or remove the zestimate. I have been following up with them for last 8 months with no results. I have the whole email thread with all the details.
I am preparing to sell my home in excess of $850K- $200K more than the Zillow estimate. My neighbor sold a crappy round manufactured homes two years back that was literally falling off a cliff, so Zillow compares that dump to my house.; Realtor.com has a far more accurate estimate of $799K.
I would love to join a lawsuit- I have contacted Zillow with actual market appraisals to no avail.
I would like to join this as well. They completely misrepresent valuations and it negatively influences property values!
Zillow is just plain greedy and stupid. I have written to them and put them on notice several times about their methodology (or lack thereof). their valuations are not based in industry standards. For example, if you register your home, they provide supposed comparables. In the industry comparable sales should be of the same property type, within one mile of the property, within 10% of the subject property, from closed sales ot current listings or sales over six months in age. Zillow is using assessed valuations or adjusting from sales prices.
the best way to get your full value and overcome Zillow misleading, deceptive and incorrect valuations is to 1. Hire an independent appraiser who provides an appraisal according to FNMA/FHLMC standards, 2. contact your local assessor and have your property value increased if the appraisal is more than the Zillow or assessed value Assessed valuation is a different metric than appraised value.
Zillow dose not care what they do to the price of a persons home.If the shoe was on the other foot they would be sueing.They have the hole market and they are telling you how much your house is this is what the reality market want full control on how to price a whole area if they want to push down the price and get homes at a better price most reality companies want to sell a home in 2 weeks and most want to price it low it dose not matter if you put a lot of your time and money in a home they will tell you this is what a other home sold for in your area the other home may not have as much work as yours but it dose not matter with a company like zillow. If you don’t know reality companies are keeping this going with zillow they could stop using zillow they are just as bad no one will speak up about this it will stop when some court will stop this abuse of the home owner this is all over America not just in one town.Thank You for letting write this.Anthony Bradley
If there is a suit against Zillow, I want in on it, please!
We have been royally screwed by the Zillow Zestimate. For 6 months they valued our home at $200K below an actual professional appraisal based recent comps in our subdivision and surrounding area. Their Algorithms (we believe) look at tax records and home sales in our zip code. There are huge differences in home types and county assessments in the 30205 zip code. I would be more than happy to bring Zillow to its knees with a law suit. Phillip 678640544
Zillow has cost us over $50,000 on a lake front home which we had proven to them that they were off. The buyers and public were given the total perception that the zestimate is the value. BY the time zilow corrected this it was too late and property had closed. The zetimate was upgraded to exactly what i had proven it was worth but only after we lost over 50k . Zillow also publicizes wrongful information with regard to propertes i have on mls. when they are wrong they blame mls. They have this listed as off the market and the public then believs it is not available. Trulia follows suit and with these companies controlling as much as they do they have fully damaged our ability to sell this home through the internet. no oneis ever reaachable and accountable at zillow yet they are always available to scam a realtor into becoming a “preferred agent”. I am and will always be available for iniitiating a class action and will tell my three thousand clients not to use zilow or trulia .Gary Heinecke 864-542-5236
California class action lawyers, please contact me to hear my Zillow horror story. Susan Welch 650-722-0011.
Please contact me if I would be able to join a class action suit against Zillow. I have listed several properties for sale and they were all off the mark by several thousand dollars. The average person would think that the price Zillow list is the fair market value. It could mean the difference in a sale or no sale. It is very damaging.
Rondelle you may reach me at 864-542-5236 to discuss a possible class action against zillow. GARY H
They estimated mine by hundreds of thousands of dollars below my listing price. They care nothing about changing it.
yes, i would like to join a class action against Zillow and Trulia for their incorrect zestimates and estimates of a listings value.
they refuse to delete my listing with its incorrect value.
I have a luxury lake home near Branson Missouri where the home is worth over a million Dollars and Zillow has continuously dropped our home value over the past few years now down to $624,000.00 way below actual real value!
Zillow needs to be stopped as they are not legally licensed appraisers! ?
Should anyone have a class action law suit which covers Missouri, please let me know!
TRying to drum up enough people I believe we are over 25000 that want to sue zillow and trulia. Gary Heinecke 864-542-5236
I have tried to communicate with Zillow regarding my house. Asked them to remove the zestimate or reflect it correctly. Got a lot of excuses as to why they cannot do that. They have dropped the price of my house by roughly $200,000.0o in the last few months.
They are difficult to reach and you are just getting a robotic type response to your concerns. I am very interested in participating in a class. action lawsuit
I have one home on market for $2.5 ml Zillow valuation $1.69 ml my personal home Redfin shows value at $5.2 ml Zillow $3.7, I WANT TO JOIN CLASS ACTION
Charles,
I am interested in either starting a suit or joining one as well. Have you found any information that may be helpful?
I would be happy to join a class action lawsuit against zillow. Please contact me to let me know of any class action lawsuits against Zillow for damaging homeowners with regards to their home values by zillow incorrect zestimates and there monopoly on the internet with homes sales and buyers.