Zillow Uses Phony Appraisals As Strong-Arm Tactic, Suit Says

Law360, New York (May 23, 2017, 10:19 PM EDT) -- An Illinois family that owns a construction business has hit Zillow Inc. with class allegations that the real estate website’s Zestimate feature gives inaccurate appraisals of homes in an effort to strong-arm homeowners into retaining Zillow-associated brokers.

Vipul B. Patel and other members of the Patel family, along with Castle Bldrs.com, say the Zestimate tool — which gives instantly calculated rough price estimates on homes — is not based on any recognized valuation method and often lowballs the value of homes.

To clear up the confusion,...
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