"The display of a probability of a specific home flooding this year, or in the next five years, can have a significant impact on the perceived desirability to purchase that property. When we saw entire neighborhoods with a prediction that there was a 50% probability of the home flooding this year, and a 99% probability of the home flooding in the next five years, in areas that have not flooded in the past 40 or 50 years,"
"Consumers made similar claims, including home sellers Andrew and Eri Uerkwitz, a married couple who sold their home in Chappaqua, New York, and filed a lawsuit against Zillow over the climate risk data in mid-October. The Uerkwitzes alleged that Zillow's climate information, which flagged their property as an extreme flood risk property, caused their home to linger on the market and ultimately sell for a $100,000 loss."
High-probability flood scores on property listings have materially affected buyer perception and sale outcomes. Entire neighborhoods received implausible probabilities despite no flooding in decades. Many of those probabilities remained unchanged for years, prompting suspicion and outreach from the regional MLS to listing portals. Some portals adjusted their displays while others did not. The MLS supports retaining risk scores when paired with links to the originating source, full context, and disclaimers. Agents and consumers reported harmed sales, including a lawsuit by sellers who alleged a flagged extreme flood risk caused a prolonged listing and a six-figure loss.
Read at www.housingwire.com
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