Zillow Gone Wild
Some very interesting news is surrounding Zillow…
A lawsuit over Zestimates has now gone to a class action status. This will have rippling effects on each and every state and expand the liability to not only licensing, but privacy and consumer fraud.
Read about this change here.
Excerpt from the article titled “Class-action suit aims to halt Zestimates in Illinois”:
“The Zestimates that Zillow posts are misleading and pose as accurate appraisals in violation of Illinois’ legal description of an appraisal, according to the complaint filed by three members of the Patel family and Schaumburg-based CastleBldrs.com. They claim homebuyers read the estimate as an appraisal, regardless of whether it is.
“Buyers tell us Zillow says a certain number for this house, and that’s the number they’re willing to pay,” said Vip Patel. He joined his father, B.T. Patel, and mother, J.B. Patel, the owner of CastleBldrs.com, in the complaint filed in Cook County Circuit Court, which seeks class-action status.
Vip Patel, who’s been building homes for 15 years, said that “in our experience, Zillow is always at least 20 percent lower than the home’s market value, but that’s the number they have planted in the buyer’s head.”
Also just released, Zillow is testing a program to eliminate Agents! They are testing the program in Orlando and Las Vegas and just like appraisers are feeding their own demise with AMCs, the agents have fed their own demise to Zillow. Here what MortgageShots.com has to say here.