Zillow Dogged by Racial Complaint

Zillow.com - Your Edge in Real Estate

Joel Burslem covers the controversy on his Future of Real Estate Marketing blog. Here’s the NY Times on the complaint:

In a letter sent by the National Community Reinvestment Coalition to the Federal Trade Commission last Thursday, the group asserted that Zillow’s Web site misrepresented home values and placed residents in low-income neighborhoods “more at risk for discriminatory and predatory lending practices.”

The organization also asserted, but would not provide substantiation for the accusation, that real estate and lending industry professionals use Zillow’s information to “perpetrate fraud.”

On some level this reflects the success that Zillow has had in the market. Zillow has become one of the top 10 real estate sites in terms of traffic and recently did a high-profile deal with Yahoo!

One Response to “Zillow Dogged by Racial Complaint”

  1. bill Says:

    The Zillow site is worse than bad – this scheming operation is drastically “devaluing” inner city properties. As an example the property in 90007 zip code at about 4300 sq. ft. located at 2653 S. Hoover St. is Zillowed at $898,138 – it is completely updated – in and out. Owned by the University of Southern California – would guess it is worth close to two million. Property across the st. is Zillowed at about one million and actually worth around $1,700,000. The Zillow people should have a “prayer breakfast” with Jessie Jackson and seek forgiveness.

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