Homeowner Sues Zillow Over Disputed Zestimate

May 11, 2017

In what is believed to be the first lawsuit of its kind, an Illinois homeowner is suing Zillow because the company’s Zestimate tool allegedly preventing the sale of her home by repeatedly undervaluing the property.

According to a Washington Post report, Glenview, Ill.-based real estate lawyer Barbara Andersen filed her lawsuit in Cook County Circuit Court with the charge that Zillow’s Zestimate of her townhouse was $562,000. Andersen is trying to sell the property for $626,000, which is close to what she paid for it in 2009, adding that larger houses directly across the street from her are selling for $100,000 more.

In her lawsuit, Andersen demands that Zillow should be licensed to perform appraisals and it should obtain “the consent of the homeowner” before posting this data online. She is seeking an injunction against Zillow to either remove the Zestimate attached to her property or to amend it; the lawsuit is not seeking monetary damages.

A Zillow spokesperson dismissed Andersen’s litigation as “without merit,” while the company’s website claimed its Zestimate “is not an appraisal” but an “estimated market value” based on a proprietary data formula.

About the author

Phil Hall

Link copied

Published

May 11, 2017

C-Suite Strategies

Better Says It Fired Vishal Garg After He Moves To Oust Board

Founder claims majority shareholder support; company blames him for its delayed 10-Q and raises possible securities-law concerns

Better Home & Finance Holding Company said Friday that it terminated founder Vishal Garg as CEO and accused him of delaying the company’s quarterly filing, sharply escalating a dispute over control of the mortgage lender one day after Garg demanded that five directors re...

Analysis and Data

Figure Says Partners More Than Doubled HELOC Volume On Its Platform

Consumer loan marketplace volume reached $4.3 billion as Figure Connect drove more production off the company’s balance sheet and helped lift adjusted margins to a record 55%

Figure Technology Solutions said mortgage partners using its platform generated substantially more home equity lending volume than their previous production would have predicted, adding an originator-level measure to a quarter marked by rapid marketplace growth and record pr...

Oct

Denver, CO

More from

Regulation and Compliance

Insuring The Risk To Lenders At Closing

Traditional protections like title insurance and closing protection letters may leave lenders exposed to significant settlement, funding, and fraud-related losses

Regulation and Compliance

Aug 13, 2026

CHLA Uses Trump Mortgage Order To Renew Push For LO Comp Reform

Community lenders want more flexibility over employee compensation, closing-cost estimates, down payment assistance, and federal supervision of smaller IMBs

Regulation and Compliance

Aug 10, 2026

Servicers Begin Testing Systems Ahead of VA Partial Claim Deadline

VA lenders and servicers have until Nov. 28 to implement the new loss mitigation waterfall and Partial Claim Program

Regulation and Compliance

Aug 06, 2026

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

Regulation and Compliance

Aug 05, 2026

CRA Proposal Could Reshape Bank Lending And Affordable Housing Investment

The OCC and FDIC would put more weight on lending while easing community development requirements for hundreds of banks

Regulation and Compliance

Aug 05, 2026

Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Regulation and Compliance

Jul 31, 2026

Popular