Comments on: Zillow.com Accused of Purposely Misleading Consumers http://www.shandyking.com/2006/10/30/zillowcom-accused-of-purposely-misleading-consumers/ Obsessive Compulsive Entrepreneur Fri, 05 Sep 2008 18:37:50 +0000 http://wordpress.org/?v=2.3.3 By: Zillow Responds To ShandyKing’s Post of Purposely Misleading Consumers » ShandyKing | Obsessive Compulsive Entrepreneur (Politics, Religion, Science and the Internet) http://www.shandyking.com/2006/10/30/zillowcom-accused-of-purposely-misleading-consumers/#comment-2491 Zillow Responds To ShandyKing’s Post of Purposely Misleading Consumers » ShandyKing | Obsessive Compulsive Entrepreneur (Politics, Religion, Science and the Internet) Tue, 31 Oct 2006 00:40:03 +0000 http://www.shandyking.com/2006/10/30/zillowcom-accused-of-purposely-misleading-consumers/#comment-2491 [...] 30th, 2006 This morning I reported that complaints were filed to the FTC by the NCRC against Zillow for “misleading consumers” with their homeestimates. [...] […] 30th, 2006 This morning I reported that complaints were filed to the FTC by the NCRC against Zillow for “misleading consumers” with their homeestimates. […]

]]> By: David G from Zillow.com http://www.shandyking.com/2006/10/30/zillowcom-accused-of-purposely-misleading-consumers/#comment-2490 David G from Zillow.com Tue, 31 Oct 2006 00:18:46 +0000 http://www.shandyking.com/2006/10/30/zillowcom-accused-of-purposely-misleading-consumers/#comment-2490 Hi ShandyKing, it's David G from Zillow.com I hope I can shed some light on these claims. Zillow is a research tool. The claim that consumers have "borrowed against these numbers" is not only false, it's theoretically impossible. Don Kelly of the Appraisal Institute was quoted today as saying; no banks use Zillow’s Zestimates when writing mortgages. Regardless of what a homeowner might believe their home is worth, it's the lender that decides whether to grant the loan. Zillow educates the websites users about what a Zestimate is (and is not). We measure and report on our accuracy for each county in the US. That data is available to all users of Zillow.com - prominantly - we link to it in the search box on our home page. Next, our help content explains Zestimates and their accuracy in detail. The text in our explanatory popups and help pages repeatedly says "A Zestimate is not an appraisal ..." etc. These claims are unfounded and unmotivated. It is disapointing that the NCRC did not approach Zillow with its concerns. We've contacted the NCRC and have requested to meet with the to understand their concerns. Thanks for writing. Hi ShandyKing, it’s David G from Zillow.com

I hope I can shed some light on these claims.

Zillow is a research tool.

The claim that consumers have “borrowed against these numbers” is not only false, it’s theoretically impossible. Don Kelly of the Appraisal Institute was quoted today as saying; no banks use Zillow’s Zestimates when writing mortgages. Regardless of what a homeowner might believe their home is worth, it’s the lender that decides whether to grant the loan.

Zillow educates the websites users about what a Zestimate is (and is not).

We measure and report on our accuracy for each county in the US. That data is available to all users of Zillow.com - prominantly - we link to it in the search box on our home page. Next, our help content explains Zestimates and their accuracy in detail. The text in our explanatory popups and help pages repeatedly says “A Zestimate is not an appraisal …” etc.

These claims are unfounded and unmotivated. It is disapointing that the NCRC did not approach Zillow with its concerns. We’ve contacted the NCRC and have requested to meet with the to understand their concerns.

Thanks for writing.

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