I’ll Zee You in Court
The Zestimate: The bane of many a real estate agent’s existence, and what one homeowner in the Chicago area is calling “a roadblock” to selling her home at what she thinks it’s worth.
Glenview resident and real estate attorney Barbara Andersen says the Zestimate, an algorithmic estimate of a home’s value provided by Zillow, has seriously undermined her efforts to get what she believes is the full-market value of her home, according to a complaint filed in court.
She’s not seeking any money from Zillow but instead wants the court to compel Zillow to remove the Zestimate or amend it to an “agreeable market value.” Zillow’s policy is to not manually alter or remove any Zestimate.
Andersen claims in her complaint that Zillow is acting as an appraiser, and therefore “should not be engaging in this business practice without a valid appraisal license and, further, the consent of the homeowner.”
In a statement, Zillow says it carefully explains that a Zestimate is not an official appraisal, but rather a starting point for how to discuss property value.
Andersen believes the home is being compared to properties built later, more cheaply and in a different, less-desirable area, and is therefore undervalued by Zillow. The asking price on the home was $626,000 when it went on the market in the spring, and Zillow estimates the property at $555,000, according to Crain’s Chicago Business. She bought the home in 2009 for $628,500.
While the company’s Zestimate has been the source of controversy and consternation for many homeowners, it has so far not led to any high-profile lawsuits from homeowners.
