Home builders in Illinois suburbs have filed a lawsuit against Zillow, a real estate marketing company, claiming its online posting of property approximations are misleading and affecting potential home sales. The home builders’ legal action centers around the company’s “at-your-fingertips property-value approximations” is misleading would-be home buyers with lowball figures that have stalled sales, the suit claims.
Illinois attorney Barbara Andersen, who earlier filed suit herself against Zillow for similar reasons, dropped her case and now is representing the complainants in a new case that will focus on Zillow’s overall practice of posting estimates without homeowner’s consent which is a violation of state statutes that govern appraisals, Crain’s Chicago Business said.
Valuation Review contacted Zillow earlier for its views on Andersen’s original suit. The company emphasized that Zestimates are not appraisals and that there is no reference to the fact that they are appraisals.
Furthermore, according to Zillow, homeowners can update the information on their property anytime for a more accurate portrayal of the home’s value. A failure to provide or include specific information in the listing is the responsibility of the homeowner.
For a recap of the original suit and further commentary from Zillow, read our full story at
http://www.valuationreview.com/VR/ArticlesVR/Zillow-sued-over-incorrect-Zestimate-70035.aspx