An Appraiser's Take on the Zillow Controversy

Peter Coy

Maybe you heard that a coalition of community activist groups is accusing Zillow.com of misvaluing homes in black and Latino neighborhoods. It's asking the Federal Trade Commission to investigate. Zillow denies the charges.

The New York Times carried a story Oct. 31 saying that National Community Reinvestment Coalition accused Zillow of systematically undervaluing homes, but in fact the coalition accused Zillow in its press release of both "over and under valuations." I guess mistakes in both directions can be problems in low-income neighborhoods, depending on the circumstances.

Here's what a New York City appraiser, Jonathan Miller, has to say about the controversy on his blog.

... And here's what Zillow itself has to say on its blog.