Earlier this year, a Chicago-land home owner and real estate attorney filed a law suit against the website Zillow. She felt the home estimate quoted on the popular real estate website was significantly lower her home’s actual value. Further, she argued, it was deterring buyers and irresponsible of the website to publish unreliable information. “If it’s not reliable, you shouldn’t put it out there,” she stated in references to the website “Zestimates”.
Zillow emerged on the web about eleven years ago and has about 171 million virtual visitors a month, according to an article published in the New York Times, written by Nick Wingfield. The market values quoted on the site are calculated using algorithms that factor in common appraisal data such as the home’s square footage, location, recent home sales and tax assessments. According to the New York Times article, the site has an error rate of about five percent. Although down from the earlier error rate of 14 percent in Zillow’s earlier years, the error rate is still not satisfactory for many home homeowners who feel it is affecting their ability to sell their home at its true value.
Zillow believes there is room for improvement as well. Last week they announced that they are not only open to suggestions but willing to pay for the best idea. The “Zillow Prize” is $1 million dollars and will be awarded to the party able to present Zillow with the most improved algorithm.
To read the entire article and get more info on how to get in on the competition for the million dollar Zillow Prize, click here.
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