Private companies are assigning high climate risk scores to homes, which is impacting market value and sale processes, contrasting with official federal flood determinations. Key takeaways: Home Value and Generational WealthA home is often a family's most valuable asset and is used by millions of Americans to build generational wealth and stability, as well as to exercise the fundamental right of private property.Perception influences price in real estate.Climate Risk Scores and Their ImpactPrivate companies like First Street are assigning climate risk scores based on forward-looking climate projections.These scores appear on national real estate platforms such as Zillow, Realtor.com, Redfin, and Homes.com.First Street's scores may conflict with FEMA's official flood maps, which operate under federal statutory authority, have a formal process, and carry regulatory weight. First Street does not have the same trusted process or regulatory authority.These scores influence buyer behavior, resulting in canceled showings, extended days on the market, and pressure on sellers to lower prices.A property described in the video had a FEMA designation of minimal flood risk (Zone X) but received a 9 out of 10 severe flood risk score from First Street.One speaker, a principal broker, shared that a home she was selling had buyer interest drop off and showings canceled after the negative score appeared, believing it was the reason buyers chose a different direction.Disputing the ScoresWhen homeowners try to dispute these scores, they are often told nothing will change unless they can provide FEMA documentation, such as a FEMA Letter of Map Amendment (LOMA), which may not apply since First Street's scores are independent of FEMA's.First Street's dispute policy states they do not update factor scores based on individual requests or disputes.The property owner and broker, Stephanie Cross, had no initial success reaching Zillow by phone, as she was not a Zillow Premier Agent, and First Street does not have a phone number.The Companies and Financial InterestsThe real estate listing companies (Zillow, Homes.com, Land.com, and Realtor.com) are partially owned by large institutional investors: BlackRock, State Street, and Vanguard, who collectively own between 15% and 22% of the shares in the parent companies of these listing sites.These investors have significant proxy voting influence.BlackRock's proxy voting guidelines pressure companies to adopt net zero emission targets that are not required by US law and may oppose directors for failing to adopt those standards.First Street Technology is a privately held public benefit corporation and is not regulated as a federal authority like FEMA.One speaker noted that the scores appear to be part of an agenda for a "land grab," potentially making it difficult for families to buy homes, leaving them to corporations, consistent with the agenda of "you'll own nothing and you'll be happy".Call to ActionRealtors need to be aware of the situation, sellers should check their listings, and buyers should understand that these are private company climate projections, not federal flood determinations.The problem needs exposure, which will lead to accountability and hitting the companies financially.People should stay informed, check their listings, and share the video with realtors and property owners.Education and speaking out are necessary to stop what is described as a "climate scam" intended to devalue private property.Stephanie Cross, the principal broker, is willing to be contacted by others who are experiencing similar issue See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
