First American CoreLogic Inc. has had enough with others infringing on their patent for AVM’s, or Automated Valuaiton Model. This includes one of the 500 pound gorilla’s of the real estate online world, Zillow and their Zestimates product.
Here are the firms being sued by First American CoreLogic, Inc.
- Zillow, Seattle Washington
- Fiserve Inc., Wisconsin;
- IntelliReal LLC, Denver;
- Interthinx Inc., Agoura Hills;
- Lender Processing Services Inc., Florida;
- Precision Appraisal Services Inc., New Jersey;
- Real Data Inc., Houston;
- Realec Technologies Inc.,Houston.
Those being sued are being asked to stop using the AVM technology and pay treble damages. This suit has to be fought by Zillow because Zestimates are a huge part of their appeal to the public. It would be hard to think of Zillow doing as well as they do without their hook.
This story will be worth watching going forward.
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Zillow will settle, Great Post
That could be a huge hit to Zillow should this case be found in favor of the plaintiff. Zillow has become a big player for consimers in the real estate market.
Who going to sue First American for creating a program that is so inaccurate? It is amazing to me that these companies, including Zillow, advertise a service that is a disservice to people. Most real estate professionals don't understand how AVM's work, let alone the general public. The advertising push of these items makes them seem relevant when a cursory look shows that they are not.
Do you think that they have a legitimate case? Or is this a warning shot that screams watch out?
I'm with @Mark. No way this goes to trial for Zillow.
I agree with Mark. It's been my experience in 25 years as a Buyer Only agent that Zillow's valuations are generally not accurate.
Clear case of people not being able to distinguish a service that is "popular" from one that is "useful." Sure Zillow will settle, but that won't make their AVMs any more accurate or useful – especially not to a professional.
It is a shame to give Zillow any credibility by allowing the public to think that there is any true value to their dubious valuation.
Zestimates are a joke. The "error" rate as published is a joke. I'm in the mortgage business, and so many people call me saying "This is what Zillow says my house is worth". Then we start the refinance paperwork, only to have a real live appraiser come back with a real live appraisal that isn't even close to reality.
On my personal home, Zillow says $404,000 and the "range" is a spread of $100,000. A recent real appraisal was $325,000.
Nice job of not even being close.
On the other hand, my iPhone app estimates are usually very close. I don't know where the app gets the data, but it is 100 times better than Zillow.
Zillow may be the 500 pound gorilla in the room, but the real fight will be with Lender Processing, Core Logic's main competitor in the information technology and analytics market. Can you imagine having to pay your main competitor a portion of all your earnings? LPS is looking to sell their version of an AVM to players in the financial industry for tens of millions annually.