Homeowner Sues Zillow Over Disputed Zestimate – NMP
Regulation and Compliance

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

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
Get the NMP Daily
Analysis and Data
MBA: Mortgage Payments Climb Despite Smaller Loan Amounts

September's $53 increase ended three months of payment relief, with affordability deteriorating in 39 states

Three months of declining mortgage payments came to an end in September, as higher rates pushed the median monthly payment on purchase applications up $53 despite a slight decline in loan amounts.The median principal-and-interest payment rose to $2,215 from $2,162 in August,...

Continue reading
Jumbo
Aven Brings HELOC-Style Financing to Home Purchases, Promising Seven-Day Closings

The $2 million credit line combines 30-year fixed-rate repayment with reusable borrowing capacity

Fintech lender Aven is taking its home-equity lending model into the purchase mortgage market, offering qualified buyers up to $2 million in financing and promising closings in as little as seven days.The California-based company announced Friday that its new Home Purchase L...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Regulation and Compliance
UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Regulation and Compliance
Oct 27, 2026
Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Tech
Oct 27, 2026
The Hidden Cost Of Appraisal Uncertainty

As home equity lending grows, lenders need a better way to resolve conflicting property evidence before it creates costly setbacks

Regulation and Compliance
Oct 25, 2026
Trump Targets Mortgage Insurance, Refi Costs In Sweeping Housing Order

The executive order calls for automatic mortgage insurance cancellation, expanded title insurance alternatives, and cheaper refinances, potentially changing how lenders and servicers handle borrower costs

Regulation and Compliance
Oct 23, 2026
What The 2026 Election Means For Mortgage Professionals

CHLA’s Scott Olson examines how the next Congress could reshape housing tax breaks, lending costs, and access to homeownership — and where bipartisan deals remain possible

Opinion
Oct 22, 2026