Пока Зиллоу made waves earlier this week after removing climate risk datа, which was supplied by First Street Technologies, from its listings, Красноперый has taken a different approach.
В post on LinkedIn, Redfin’s chief economist Daryl Fairweather wrote that her firm had made the choice to continue displaying the data “because homebuyers find climate risk scores valuable when making one of the most important financial decisions of their lives.”
“In 2020, we ran a massive experiment with 17.5 million users. We displayed flood risk data provided by First Street to half the audience,” Fairweather wrote. “The result was undeniable: Among users looking at severely or extremely flood-risky homes, those who saw the risk scores made offers on homes with 50% less risk than those who didn’t. Information drives decision-making.”
Is the data accurate?
Zillow’s decision to remove the data, which was first reported by The New York Times, came after Калифорнийский региональный MLS (CRMLS) reached out to it, as well as other portals about the data.
“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, we grew very suspicious,” Арт Картер, the CEO of CRMLS, wrote in an emailed statement.
“Most of these predictions have been in place for almost five years, with no updates in the stated probabilities even though it is very clear that these future predictions ended up being very wrong.”
However, Carter noted that CRMLS supports buyers having access to timely and accurate information about environmental risks and suggested that instead of just displaying the data, the portals provide a link to First Street alongside a property’s overall risk score, which Carter said would enable consumers to receive more robust and detailed information about a property’s risk factors.
Zillow took this suggestion and began removing the data from its listings, while still providing consumers with a link to each listing’s First Street report on its site.
Redfin has decided to stay the course
In her LinkedIn post, Fairweather acknowledged that the current climate risk data is not perfect, but she noted that First Street’s methodology is “peer reviewed and validated by experts.”
“Climate risk scores are only one piece of information regarding the costs of climate change for homebuyers. Ideally, we would provide actual insurance cost data alongside these risk scores. However, without disclosure requirements, buyers often don’t learn the cost of insuring a home until after they’ve made an offer,” she wrote. “Until insurance transparency improves, we are committed to providing the best available climate risk data so buyers can make informed decisions when choosing a home.”
In addition to buyers, Fairweather also noted that the climate risk data can also help existing homeowners.
“Hiding risk doesn’t remove it. Instead, access to climate data empowers homeowners to take action,” Fairweather wrote in a second post. “Adaptation: Knowing a home has flood risks allows owners to invest in better landscaping or gutters to divert water. Fire risks might prompt a switch to metal roofs or better vegetation management.”
She added that knowledge about an area’s climate and environmental risks can also prompt communities to advocate for things like flood retention ponds or better fire department resources.
“We believe the default should be transparency. Ignorance isn’t bliss when it comes to your biggest asset,” Fairweather concluded.
Sellers can request inaccurate info be removed
In a statement attributed to Fairweather and provided by Redfin, she clarified that if sellers believe the information for their listing is inaccurate, they can ask Redfin to remove it.
This is an option home sellers Andrew and Eri Uerkwitz, a married couple who sold their home in Chappaqua, New York, wished they had had after selling their home for a loss earlier this year. The couple have filed a lawsuit against Zillow in which they allege that the climate risk data Zillow included on their listing, 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.
In a statement about the decision to remove the climate risk data, a Zillow spokesperson told HousingWire that the company updated its “climate risk product experience to adhere to varying MLS requirements and maintain a consistent experience for all consumers.”
“This update ensures consumers continue to have access to important information to help them consider factors such as insurance, repair costs and long-term homeownership planning, and reflects our long-standing commitment to empowering consumers with transparent information,” the spokesperson added.
Like both Redfin and Zillow, Риэлтор.com also includes First Street climate data on its listing display.
As of Wednesday, First Street data was still displayed on listings on Realtor.com. In an emailed statement, a Realtor.com spokesperson said the portal was working with CRMLS and its data providers to look into the issues that were highlighted in the initial New York Times article.
“We aim to balance transparency about the evolving environmental risks to what is often a family’s biggest investment, with an understanding that the available data can sometimes be limited,” the spokesperson wrote. “For this reason we always encourage consumers to consult a local real estate professional for guidance or to learn more. When issues are raised, we work with our data partners to review them and make updates when appropriate.”
English