Homebuyers Launch Class-Action Suit Against Zillow for Hidden Agent Fees in Seattle
A federal class-action lawsuit alleges Zillow has been deceiving homebuyers and inflating purchase prices through hidden fees paid by real estate agents.
A new federal lawsuit has been filed against Zillow, accusing the real estate listing website of deceiving homebuyers and inflating purchase prices in Seattle. The suit, brought by law firm Hagens Berman, claims that Zillow has been engaging in a scheme involving hidden fees paid by certain real estate agents in order to appear more prominently in the site's search results. This cost is then allegedly passed on to buyers in the form of higher purchase prices.
The lawsuit alleges that Zillow has been charging these fees, known as "Premier Agent" fees, to certain real estate agents in exchange for the agents appearing at the top of the search results page. This, in turn, gives the agents a competitive advantage in the highly competitive real estate market, as buyers are more likely to click on and contact the top-ranked agents.
The suit also claims that Zillow does not disclose these fees to buyers, leading them to pay higher prices for properties without being aware of the reason behind the inflated cost. The lawsuit seeks to represent a class of homebuyers who have purchased properties through Zillow in the past four years and have paid higher