Homeowner sues Zillow for allegedly undervaluing her home

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Homeowner sues Zillow for allegedly undervaluing her home

Homeowner sues Zillow for allegedly undervaluing her home

Zillow's housing price estimate tool is facing its first legal challenge.

An Illi**is Homeowner filed a lawsuit against the online real estate database this week, claiming the company's "Zestimates" feature lowballed the value of her house.

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Since Zillow obviously can't take a tour of every house in the country, "Zestimates" are based on tax data and other public records that are fed into the company's proprietary algorithm. That means they don't directly account for factors like remodels and the individual merits of each home. Read more...

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