Zestimate Lawsuit Dismissed

Zillow Zestimate

The widely watched lawsuit against Zillow for their “Zestimate” home estimate tool has been dismissed.

The outcome of this case was being watched by many in the real estate industry as well as homeowners themselves.

In the lawsuit against Zillow, Glenview homeowner and attorney Barbara Andersen alleged that the “Zestimates” Zillow posts act like an appraisal of home market value. This was alleged to be illegal because, under Illinois law, only licensed appraisers can issue home appraisals.

Case dismissed by judge

How accurate is your zestimate? The case went before a federal judge in Chicago and was dismissed on August 23rd on the grounds that Zestimates are a mere “starting point” that are unlikely to confuse homebuyers.

U.S. District Judge Amy St. Eve stated: “Zestimates are not false, misleading, or likely to confuse. The word ‘Zestimate’ – an obvious portmanteau of ‘Zillow’ and ‘estimate’ – itself indicates that Zestimates are merely an estimate of the market value of a property.”

She further noted that Zillow has labeled the estimates clearly as estimates and includes information on its site detailing the ways in which the estimates can be inaccurate.

Judge Amy St. Eve also dismissed with prejudice the notion that Seattle-based Zillow violated the Illinois Real Estate Appraiser Licensing Act. This means the claim may not be brought before the court again.

The judge indicated that the plaintiffs could attempt to replead three other claims, including one for Zillow’s purported invasion of privacy for posting home values without permission.

The plaintiffs

The lawyer for the plaintiffs Barbara Andersen said her clients are looking into amending the complaint. “Zillow has unilaterally imposed its opinions on the value of homes without the consent of homeowners,” she stated. “It impairs people’s ability to sell their homes because the estimates do not comply with recognized appraisal standards, and some are way too low.”

Zillow

A Zillow spokeswoman said the company was pleased with the judge’s ruling. “The Zestimate has proven itself to be a sought-after and valuable free tool for consumers.”

Zillow stock moved up slightly the next day and its value has been increasing slowly since.

End of the case against Zillow?

This may be the end of the case for now. We will have to wait and see if the plaintiffs decide to move forward with amending the complaint and bringing it before the court once again.

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The Law Offices of Lora Fausett P.C. provides real estate law services including loan modifications, buying and selling legal assistance, short sales and deeds in lieu, mortgage foreclosure defense, and others.

Located in Glen Ellyn, Illinois and serving clients in DuPage, Cook, Kane, Will, and Kendall Counties.

For Information Call 630-858-0090

Sources:

Zillow wins dismissal of ‘Zestimate’ lawsuit in U.S. – Reuters
Zillow ‘Zestimates’ lawsuit dismissed – Crain’s Chicago Business
Zillow’s home-price ‘Zestimates’ survive legal challenge – MarketWatch
Illinois homeowners lose bid to sue Zillow over ‘Zestimates’ – BizJournals.com
‘Zillow Zestimates’ Class-Action Lawsuit Dismissed – InvestorPlace

Cook County Assessor Faces Controversy Over Widespread Inequities

property tax assessments

Cook County Assessor Joseph Berrios is facing continued pressure over widespread inequities in the Cook County property tax system.

Homeowners in Chicago have complained for years about the complicated and arcane tax assessments for homeowners in Cook County.

The controversy gained a huge amount of publicity from the Chicago Tribune investigative series The Tax Divide published this summer. Their investigation uncovered evidence that the Cook County property tax system helped wealthy homeowners at others’ expense.

The Tribune alleged that the Cook County Assessors Office routinely overvalued homes in poor neighborhoods while undervaluing homes in wealthier ones. This has led to inequities in property tax bills, giving wealthy homeowners lower tax assessments while unfairly placing a great burden on fixed and low-income residents.

Contesting your property tax assessment is not a simple process and can be even more difficult for homeowners with fixed incomes. For many of those most likely to receive overvalued assessment, hiring an attorney to help contest their property value is not an option.

Property tax bills Kane & DuPage County It doesn’t help Berrios’ case that tax appeal lawyers are major contributors to his campaign. They have contributed over 2 million dollars to his campaign but he has declared there is no conflict of interest.

These stories have galvanized property owners in Chicago to place pressure on government agencies to investigate. The Cook County inspector general has opened an investigation. State and local lawmakers have proposed new legislation to limit the assessor’s ability to raise campaign contributions from tax attorneys. A new bill has been introduced in the General Assembly that would require greater transparency in the assessment process.

Joseph Berrios has recently been called before the Cook County Board for questioning and his office was accused by some of being guilty of institutional racism.

Formal mayor candidate Jesus Chuy Garcia stated: “My concern is whether the poor people in Cook County are getting the shaft.” “That is what I want to avoid, and I want to know when it will cease because it shouldn’t be tolerated.”

Berrios repeated his previous assertions that the assessments are fair and accurate. He did not, however, offer any detailed evidence.

Cook County Seal After the meeting, Cook County Board President Toni Preckwinkle announced that a group called Civic Consulting Alliance would perform a review of the property tax assessment system.

The controversy has reached a point where it seems there will be either change to the system or political repercussions.

Even though Joseph Berrios faced tough questioning from the Cook County board, he remains highly influential as the Chairman of the Cook County Democratic Party. Many of the people he faced in the meeting rely on him and the party for political support.

Needless to say, it will be interesting to see what happens next.

Located in Glen Ellyn, Illinois and serving clients in DuPage, Cook, Kane, Will, and Kendall Counties.

For Information Call 630-858-0090

Zestimate Lawsuit – Zillow Class Action Lawsuit Over Online Appraisals

Real Estate Home Buying Myths

Northwest suburban Chicago home builders in Schaumburg have filed a class action lawsuit against the real estate marketing company Zillow.

According to the suit filed on behalf of CastleBldrs.com in Schaumburg, the Zillow.com online estimate tool “Zestimate” provides home estimates that are misleading, and falsely pose as home appraisals in violation of the legal description of an appraisal in Illinois.

The attorney representing Castle Builders is Barbara Andersen, who had also filed an earlier suit against Zillow on her own behalf. Her suit had claimed that a Zestimate of her townhouse value was unrealistically low and had created a “roadblock” to selling her home.

Anderson has since filed a motion to dismiss her suit in order to represent the Castle Builders case.

Class action lawsuit against Zillow

How accurate is your zestimate? The new class action suit is on behalf of all of the millions of homeowners in Illinois. It claims homeowners should be asked their permission to publicly post financial data about their homes.

“Zillow has said they use the Zestimate to draw people into their website,” Andersen told Crain’s Chicago Business. “But from a legal perspective, they shouldn’t be making these estimates at all.”

The Zestimate lawsuit argues that by posting its estimates, Zillow has intentionally violated the “seclusion” of every homeowner in Illinois, without giving them a means to opt out.

Illinois law states “It is unlawful for a person to (i) act, offer services, or advertise services as a State certified general real estate appraiser, State certified residential real estate appraiser, or associate real estate trainee appraiser, (ii) develop a real estate appraisal, (iii) practice as a real estate appraiser, or (iv) advertise or hold himself or herself out to be a real estate appraiser without a license issued under this Act.”

“Even if Zillow’s numbers were perfect, dead-on accurate, they’re still opining on the value of homes, and they don’t have the license to opine,” attorney Andersen said.

Zillow denies Zestimates are appraisals

mortgage rates going up after presidential election Zillow maintains that its approximations are not actual appraisals, nor do they claim to be.

They say Zestimates are based on public records and other data using “a proprietary formula.” Zillow also provides a disclaimer about the accuracy of its approximations.

A Zillow spokesperson told MarketWatch “We believe the claims in this case are without merit. We always say that the Zestimate is a starting point to determine a home’s value, and isn’t an official appraisal. It’s a computer-automated estimate of your home’s value.”

Many people in the real estate industry will be watching for the outcome of this case.

Zillow Zestimate Class Action Lawsuit Update

Story updated – August 2017 – The Zillow class action lawsuit has been dismissed by a federal judge in Chicago. Read the story here: Zestimate lawsuit dismissed

Class-action suit aims to halt Zestimates in Illinois – Chicago Business

Do Zillow ‘Zestimates’ mislead home buyers? Lawsuit claims yes – MarketWatch

Zillow’s ‘Zestimate’ facing class-action lawsuit, reports say – Chicago Agent Magazine

Glenview homeowner sues Zillow over ‘sloppy’ estimate – Crain’s Chicago Business

Chicago Area Home Sellers File Lawsuit Against Zillow’s Zestimate – Chicago Now

The Law Offices of Lora Fausett P.C. provides real estate law services including buying and selling legal assistance, short sales and deeds in lieu, mortgage foreclosure defense and more.

Located in Glen Ellyn, Illinois and serving clients in DuPage, Cook, Kane, Will, and Kendall Counties.

For Information Call 630-858-0090

Mold Disclosure Illinois – Not Required for Realtors

Did you know that mold disclosure forms are not required by Illinois law in real estate transactions?

Many buyers are surprised to hear this, but there are no specific statutory requirements for sellers to provide regarding disclosure of mold.

There is no state or federal requirement to do so.

Illinois mold disclosure

For many years, Illinois REALTORS® did offer their own mold disclosure forms despite the fact that there is no law.

During the past year though, Illinois REALTORS® have stopped offering the form on their website. According to Illinois REALTORS® Legal Hotline Attorney Betsy Urbance, the form was been dropped from their website after a legal review.

“… Mold disclosure or notice introduces ambiguity into the transaction while also taking the focus off what are truly the important issues to the parties.”

Illinois REALTORS® does not support these forms any longer and requests you remove them from your individual forms folder and discontinue use of them.

Three main reasons were given for the removal of mold disclosure forms:

There are no state or federal statutory requirements that sellers provide mold disclosure forms.
There is no set scientific standard for what constitutes acceptable or unacceptable levels of mold in a structure.
There are existing disclosure rules which require homeowners to disclose underlying physical defects in a property.

Landlord Liability for Mold

Just as there are no current Illinois laws for disclosure of mold for sellers, there is currently no law covering a landlord’s responsibilities in regards to mold.

Illinois does not have any laws that specifically address a landlord’s duties or liability when it comes to mold prevention and remediation.

Even though there is no law for landlords regarding mold disclosure, if tenants believe their health has been damaged by mold present in their rental property, they can sue for damages in court.

If a judge or jury believes that a landlord has been negligent in regards to a mold issue or did not take action to address a known mold issue, they could be held liable for damages.

Residential Real Property Disclosure Act

In the case of mold, there is no legislation specific disclosure law.

There is, however, the Residential Real Property Disclosure Act, which requires a seller to disclose any known physical defects, including issues involving moisture, which would lead to issues with mold.

It can be argued that the presence of mold could constitute a known defect in the walls, foundation, etc. If a seller is aware of mold, the seller should disclose it.

If you are uncertain of your legal obligations, you should consult an attorney specializing in real estate law.

Lead Paint and Radon Disclosure

Disclosure of lead paint is required by federal law since 1992. Radon disclosure is required by the Illinois Radon Awareness Act.

The Law Offices of Lora Fausett P.C. provides real estate law services including buying and selling transactions, short sales, mortgage foreclosure defense and more.

For Information Call 630-858-0090

Image credit: Wikipedia Commons

3 Real Estate Myths – Prequalification, Down Payments & Closings

In this post, we will review three real estate myths that are commonly held by first-time homebuyers.

It’s important to have the right information when you are buying a home. The process can be confusing and difficult enough without believing misinformation.

Myth #1 – A prequalification letter is a loan commitment

The truth: A prequalification letter is not a binding loan commitment.

If you are counting on a prequalification letter in order to guarantee a contract from a home seller, you may find yourself disappointed.

According to Brooklyn Law School professor David Reiss, “prequalification is not a binding agreement. It is one of a number of real estate myths that should be understood.” (Source: Washington Post)

It’s common for homebuyers to contact a bank or lending institution when they are about to begin their home buying process. This gives people a good idea of how much they can afford and how large of a mortgage loan they will be approved for.

When it is time to formally apply for a home loan, you will be required to provide more information to prove you qualify. Your pre-qualification is not a loan guarantee or a binding agreement from the lender.

Myth #2 – Homebuyers must put down 20 percent down payment

Truth: To buy a home, you don’t need to make a 20 percent down payment.

The twenty percent down payment on a home has been repeated for so long that it continues to be believed. It hasn’t actually been true for a while though.

It might still be a helpful guideline for future homeowners to keep in mind and save money for a future down payment, but there are many alternatives to the 20% down payment.

One reason that the 20% figure still exists is that it is usually true that without a 20 percent down payment, you are usually required to purchase private mortgage insurance or government insurance, which increases your monthly housing costs.

Another reason the 20% down payment requirement isn’t true is that it only ever applied to conventional home loans. There are several other alternatives that can have a low or no down payment including VA loans, USDA loans and FHA loans.

Although the 20 percent down payment may not always apply, keep in mind that not doing so may require purchasing insurance and a higher interest rate, both of which will add costs to your home.

New Developments on VA Home Loan Requirements

Myth #3 – Closing takes 30 days

Truth: The average closing time is 45-50 days.

It used to be true that closing on a home could be completed in 30 days, but the current rules for real estate transactions have changed this.

Fewer closing then every are completed in 30 days than ever. Your closing time can vary based on the type of loan your receive (VA loan, FHA loan, etc) but it’s unlikely the time between contract and closing (escrow) will be 30 days.

If you have found this article helpful and are looking for help in the home buying process in Glen Ellyn, DuPage County or Chicagoland call Call 630-858-0090

The Law Offices of Lora Fausett P.C. provides real estate law services including buying and selling, short sales, mortgage foreclosure defense and more.

Case dismissed by judge

The plaintiffs

Zillow

End of the case against Zillow?

For Information Call 630-858-0090

For Information Call 630-858-0090

Class action lawsuit against Zillow

Zillow denies Zestimates are appraisals

Zillow Zestimate Class Action Lawsuit Update

Related stories and sources:

Class-action suit aims to halt Zestimates in Illinois – Chicago Business

Do Zillow ‘Zestimates’ mislead home buyers? Lawsuit claims yes – MarketWatch

Zillow’s ‘Zestimate’ facing class-action lawsuit, reports say – Chicago Agent Magazine

Glenview homeowner sues Zillow over ‘sloppy’ estimate – Crain’s Chicago Business

Chicago Area Home Sellers File Lawsuit Against Zillow’s Zestimate – Chicago Now

For Information Call 630-858-0090

Illinois mold disclosure

Landlord Liability for Mold

Residential Real Property Disclosure Act

Lead Paint and Radon Disclosure

For Information Call 630-858-0090

Image credit: Wikipedia Commons

Myth #1 – A prequalification letter is a loan commitment

Myth #2 – Homebuyers must put down 20 percent down payment

Myth #3 – Closing takes 30 days

For Information Call 630-858-0090

Image credit: Pixabay

Related sources: