That’s not the dynamic in question. Its when Zillow has incorrectly estimated a value, and the buyer(s) use that as leverage to attempt to negotiate the price downward. I assure you this goes on all the time, as well as goes on in the other direction where they over value properties. I have even seen Zillow put estimates on commercial properties that they are mistaking for dwellings.
I understand how Zillow has created access to previously hidden information and why that is good. But they should really keep their lame estimates to themselves, and stop meddling in every real estate transaction in the country.
