"Although the property sat, there was still interest in the home, including two offers the sellers accepted only to have the prospective buyers pull their offers after they allegedly saw the property's flood risk rating, which was flagged on Zillow as 9/10 indicating an extreme flood risk property. The Uerkwitzes claimed that other interested buyers cited the flood risk as to why they ultimately did not make an offer on the property."
"Every property on Zillow includes climate risk ratings for flood, fire, wind, heat and air pollution. Properties get a score out of 10 for each risk category. The higher the score the greater the risk. On Zillow, prospective buyers are only able to see the numerical rating, but they are able to access the property's detailed climate report through a paid subscription with First Street."
"After roughly four months on the market, the Chappaqua home finally sold for a $100,000 loss in mid-August for $999,000. However, prior to the home being sold, the Uerkwitzes filed a lawsuit in New York County Superior Court against Zillow and First Street Technology, the company that compiles the climate risk data for Zillow. In their suit, filed in mid-June, the plaintiffs claimed that the property's flood risk rating on Zillow caused it to be stigmatized as materially unsellable at its actual market value."
Properties in Chappaqua had a median days on market of seven days, but the Uerkwitzes' home sat on the market for months. Two accepted offers were withdrawn allegedly after buyers saw a 9/10 flood risk rating on Zillow, and other prospective buyers cited flood risk as a reason for not making offers. Zillow began partnering with First Street for flood risk data in September 2024. After roughly four months, the home sold in mid-August for $999,000, a $100,000 loss. The Uerkwitzes sued Zillow and First Street in New York County, seeking $500,000, claiming the rating stigmatized the property.
Read at www.housingwire.com
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