A Schaumburg home builder has filed a class action lawsuit against the real estate giant Zillow.
This is believed to be the first lawsuit of its kind against the website. If you've ever bought or sold a home, you've likely looked at the site to get an idea of the home’s value.
Vip Patel, President of Castle Builders, says people are relying on these estimates to decide how much a home is worth and ultimately impacting the real estate industry nationwide.
Patel adds, “I really thought of it as my issue. I didn’t realize there are people frustrated all over the country.”
Eight years ago Patel built a 6-bedroom home on Willow Road in Schaumburg. It’s been sitting on the market all that time even though he has lowered the price from $2.5 million to $1.9 million. Zillow has a listed Zestimate of just under $1.2 million. He says the Zestimate is lower than what it cost to build the home.
The case is in the courts right now, the attorney is waiting to get approval from a judge to turn it into a class action, that means anyone in Illinois would be able to join the lawsuit.
Zillow has been reaching out to the public to see if someone can come up with a better algorithm, offering a $1 million prize.