Zillow Group on Wednesday won the dismissal of a lawsuit that challenged the accuracy of its home value “Zestimate” tool.
The case was brought in federal court in Chicago in May by homeowners who charged that the website’s pricing feature undervalued their property.
“Zestimates are not false, misleading, or likely to confuse,” the judge wrote in a ruling. “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.”
also provides data on the market in the metro area where each property is located and even calculates how accurate its Zestimates are, the judge added.
In a statement, a Zillow spokeswoman said the company was “pleased” with the outcome. “The Zestimate has proven itself to be a sought-after and valuable free tool for consumers. It’s the most accurate computerized home value estimate anywhere, and serves as an important data point for millions of homeowners, buyers and sellers every day,” she wrote.
Zillow has separately acknowledged that the Zestimate tool may benefit from an upgrade, and in May offered an award to “the person or team who can most improve” the algorithm.