Is Zillow really accurate?
Zillow.com, the fast growing (at least in popularity) real estate appraisal mash-up service based in Seattle, has hit an air pocket1. The National Community Reinvestment Coalition (NCRC) is complaining that2 the “Internet financial services and real estate provider Zillow.com is misleading consumers, real estate professionals and financial service providers in on-line home valuations.” They have filed a complaint with the Federal Trade Commission which at this point is just a complaint, not an investigation. (Zillow president, Lloyd Frink gives his side of the story on the Zillow blog3.) The specific charges are:
Zillow is falsely representing to the public that its on-line valuations are within ten percent of the home selling price.
Zillow has a less than 30 % accuracy rate when offering the valuations for public consumption.
Zillow.com’s over and under valuations are causing substantial injury to consumers nationwide when they consider selling their home, using their home equity or buying or refinancing property.