What Zillow Doesn't Want You to Know- The Lates Headlines Every Home Buyer & Seller Should See

What Zillow Doesn’t Want You to Know — The Latest Headlines Every Home Buyer & Seller Should See

Zillow has long been the go-to portal for home search — a place where buyers begin, sellers list, and agents hustle for leads. But in the last year, a series of controversies, legal battles, and shocking operational changes have raised serious questions about how Zillow serves (or fails) both consumers and professionals. Here’s what’s been making headlines — and why you should care.

1. Zillow Removed Climate Risk Data — After Industry Backlash

One of Zillow’s most touted transparency tools — property risk scores for flooding, wildfires, extreme heat, wind, and air quality — is gone from most listings. The feature, originally powered by First Street Foundation data, was intended to help buyers understand long-term hazards. But after agents and MLS providers pushed back — saying the scores hurt sales and questioned their accuracy — Zillow quietly dropped them from its site and now only links out to external data instead. The California MLS even labeled the risk data “suspicious” due to improbable flood probabilities in many areas. Vox+1

What that means: Buyers have less environmental transparency right when climate risk and insurance costs matter more than ever.

2. Major Antitrust & Competition Lawsuits Could Reshape the Industry

Zillow and Redfin are currently being sued by the Federal Trade Commission for entering what the FTC claims was an illegal agreement to suppress competition in online rental advertising. Allegedly, Zillow paid Redfin $100 million in exchange for Redfin stopping its own competing rental ads and syndicating Zillow’s listings exclusively — potentially raising costs and reducing choice for renters and property managers. Federal Trade Commission

This isn’t the only antitrust pressure Zillow faces. Compass — one of the nation’s largest brokerages — has sued Zillow over its “listing access standards,” which require homes marketed publicly to appear on Zillow’s platform quickly or risk delisting. Critics argue this stifles innovation and choice for brokerages and buyers alike. HousingWire

What that means: Zillow may be forced to change how it operates across listings and rentals — and agents should pay attention, because the outcomes could ripple widely through the market.

3. Lawsuits Allege Deceptive Practices & Hidden Fees

Beyond antitrust concerns, Zillow faces class-action and consumer litigation accusing it of steering buyers to Zillow-affiliated agents (like Premier Agent or Flex) without clear disclosure that Zillow takes a portion of the commissions — sometimes as much as 40%. Plaintiffs say this hides conflicts of interest, creates higher costs, and misleads buyers about who they’re actually working with. JD Journal+1

Another lawsuit claims Zillow pressured buyers into costly loans and colluded with agents for profit — allegations that Zillow vehemently denies but that nonetheless underscore growing distrust. Norwalk Hour

What that means: Transparency around agent referrals and lead attribution is under legal scrutiny — and consumers may not understand how Zillow’s platform incentives really work.

4. Zillow Is Being Sued by CoStar for Intellectual Property Violations

In a less-discussed but massive legal fight, CoStar Group sued Zillow in 2025 for allegedly using tens of thousands of copyrighted photos without permission from Homes.com or Apartments.com. CoStar estimates potential damages could exceed $1 billion — underlining how Zillow’s rapid data growth strategy may be running afoul of property rights and professional standards. Reuters

What that means: Content licensing and ethical use of listing media are now legal battlegrounds — and could affect how listings are displayed across the web.

5. Fake Reviews & AI Manipulation Are Becoming a Real Problem

A recent study found that nearly 1 in 4 agent reviews on Zillow in 2025 are likely AI-generated, up massively from just a few years ago. These fake reviews can artificially inflate reputations and mislead consumers — and Zillow currently doesn’t flag AI content or provide transparency about review authenticity. nypost.com

What that means: Buyer trust in agent reviews — one of Zillow’s most used features — may be eroding rapidly.

So What Should Buyers, Sellers & Agents Know?

🔹 Know the source of the data: Zillow’s removal of climate risk scores is a reminder that not all information is equally reliable or permanent.

🔹 Understand the economics beneath the buttons: Clicking “Contact Agent” doesn’t always connect a buyer to the listing agent — and may send leads to Zillow’s preferred partners instead.

🔹 Be cautious with reviews: With AI content rising, make sure to look beyond star ratings.

🔹 Expect the regulatory landscape to shift: Ongoing lawsuits could transform how online portals operate — and how agents generate leads.

🔹 Use Zillow wisely: It’s still an indispensable search tool — but consumers and agents alike should know what’s behind the scenes.

Your Next Step: Talk to Real Experts, Not Algorithms

Zillow may be a powerful search tool — but it will never replace the value of working with a trusted, local, human real estate team who understands your goals, protects your interests, and guides you through every step with real expertise.

At Team Ruby of Raleigh, our 15-agent team closes over 100 transactions per year, giving us the experience, insight, and market awareness that no online portal can match.

Whether you’re thinking about buying, selling, or simply need clarity on what these new headlines mean for your situation:

Reach out to Team Ruby today.

We’ll walk you through the truth behind the data, help you understand your options, and give you the confidence to make the best decision for your future.

📞 Call, text, or message us anytime — we’re here to help you move forward with clarity and confidence.