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As reported by at least one media source, “Homeowners, realty agents and appraisers have been critical for years about the valuation tool, citing estimates that too often are far off the mark — sometimes 20 percent or 30 percent too low or too high — and misleading to consumers.”

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May 10, 2017


Zillow is a popular online realty website and mobile application.  Zillow provides a tool whereby a user can type in almost any house’s street address and receive a property description and a “Zestimate.”  The Zestimate provides a value based on a “proprietary formula,” according to Zillow. 

A new lawsuit alleges that Zillow’s Zestimate tool undervalued an individual’s house and prevented it from being sold.  The lawsuit alleges that the Zestimate tool provides “appraisals” of property, as defined under the relevant law, and that Zillow should be licensed to provide appraisals and should obtain consent from the homeowner before posting them online. 

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