Zillow.com has landed in the hot seat over claims that its home valuation tool is inaccurate.
The National Community Reinvestment Coalition, a Washington, D.C.-based nonprofit that promotes equal access to credit and capital for underserved communities, has filed a 12-page complaint (PDF) against Zillow with the Federal Trade Commission.
It says that Zillow's valuation "mechanism is highly inaccurate and misleading to consumers, including the general public, as well as to real estate and financial service providers." The NCRC also notes -- citing its own audit -- that Zillow is off the mark with its home value estimates more than two-thirds of the time.
"Zillow is placing the American dream of homeownership at risk for countless working families," says John Taylor, president and chief executive of the NCRC President in a prepared statement (PDF). "For a company that represents to consumers that they are the 'Kelley Blue Book of Homes,' this is a very dangerous situation. We call upon the FTC to intervene and ensure that Americans receive accurate appraisals and valuation information to protect the single most important investment of their lives: their home."
Seattle-based Zillow, which is backed with $57 million in venture capital, calls the allegations "groundless."
Complaint filed with FTC over Zillow Service
John Cook:
