Zillow home estimates are allegedly inaccurate
The National Community Reinvestment Coalition has filed a complaint with the FTC against Zillow stating that the company is misleading consumers and real estate professionals that rely on the accuracy of its home valuation service.
Zillow has created a lot of buzz around its home value estimation tool. I know a number of real estate agents that use Zillowâ€™s valuation tool on a regular basis. And nearly all those agents heavily rely on the accuracy of the valuation. Therefore, if Zillow is in fact misleading people, this could become a major issue.
You can check out the complaint PDF here. [link]
In the complaint, the NCRC states that Zillow misrepresents itself as the Kelly Blue Book for homes. It also states that Â Zillow misrepresents the accuracy percentage of its home estimates. According to Zillow, its estimates are with-in 10% of a homeâ€™s selling price. Unfortunately, many consumers do not realize that they should take any online home valuation toolâ€™s estimate with a grain of salt. Zillow should maybe add a disclaimer for real estate professionals stating that its estimates may be inaccurate.
I do hope that Zillow gets out of this complaint. I really like Zillowâ€™s website. Itâ€™s intuitive and easy to use. And even if the estimates are not completely accurate, at least itâ€™s a place to start.