Another wild week in the books…

We put together another home sale after welcoming more than 100 visitors to our open house last weekend — which generated 26 offers.

Then, just to keep things interesting, the parking garage outside my office partially collapsed on Wednesday. Thankfully no one was injured!

Today’s Topics:

Chappaqua Couple Sue Zillow Over Climate Score
Westchester New Inventory Drops Week-Over-Week
State and Local Tax (SALT) Deduction Increased

Chappaqua Couple Files Lawsuit Against Zillow

326 Millwood Road in Chappaqua. Courtesy of OneKey® MLS.

A couple in Chappaqua filed a lawsuit accusing Zillow and First Street Technology of harming their home sale by assigning their property an “extreme” flood-risk rating. They say the rating discouraged prospective buyers, led to offers being withdrawn, and forced them to sell at a loss. The couple contends the risk score was inconsistent with FEMA maps, on-site inspections, and the home’s history, and they are seeking damages.

Allegation: Zillow listed their home as an “extreme flood risk (9/10)” even though the home is not in a FEMA flood zone and has no history of flooding.
Impact: The couple says potential buyers backed out, forcing them to sell for $999,000 — about $100,000 loss. (Purchased in 2022 for $1.1m)
Claims: They argue the risk data was false and misleading, calling Zillow’s display of it negligent and defamatory.
Damages Sought: The couple is pursuing $500,000 in damages for the alleged financial loss and reputational harm to their property.

Ralph’s Take

Zillow assigns each property a climate risk score (1–10) for flood, fire, wind, heat, and air quality, with higher numbers indicating greater risk. In April, Zillow began including FEMA flood data alongside First Street’s ratings, adding a disclaimer noting potential discrepancies between sources. Still, confusion remains. At last weekend’s open house in New Rochelle, a buyer insisted our listing was in a flood zone. FEMA maps list it as Zone X — minimal flood risk or less than 0.2% of flooding — yet Zillow and First Street rate it 9/10 for flooding! Our seller purchased the home in 1990, and it has never flooded.

Westchester Weekly Market Tracker 📈

‘Coming Soon’: 15 ↓-4
New Listings: 158 ↓-41
Price Reductions: 86 ↓-9
Pending Sales: 178 ↓-12
Closed Sales: 106 ↓-54

💰 Find your home’s value here: What’s my home worth?

_{Property Type: Residential. OneKey MLS, Inc. 10/10/25 - 10/17/25.}

SALT Cap Lifted — Here’s How Much You Could Save

After years of debate, Congress has finally raised the long-standing limit on state and local tax (SALT) deductions — a move that could shift the financial picture for homeowners in high-tax areas, such as Westchester. The change, part of the recently passed “Big Beautiful Bill,” increases the SALT cap from $10,000 to as much as $40,000, but not without strings attached.

Pre-2017: Homeowners could deduct all state and local property, income, and sales taxes with no federal cap.
2017 Tax Cuts and Jobs Act (TCJA): Introduced a $10,000 cap on state and local tax (SALT) deductions for both individuals and married couples.
2025 Update: Raises the cap from $10,000 to a scalable amount up to $40,000:
- Itemizers Only: Only taxpayers who itemize deductions can use the SALT benefit; those taking the standard deduction do not qualify.
- Multiple Properties: The expanded deduction can apply across primary, secondary, and investment homes.
- Income-Based Phaseout:
  - Full benefit for households earning under $500,000.
  - Gradual phaseout between $500,000–$600,000.
  - Cap drops back to $10,000 for incomes above $600,000.

Ralph’s Take

For homeowners in Westchester County, the new SALT cap of up to $40,000 offers some overdue relief from property taxes that often exceed $20,000 a year. The benefit, will expire in 2030, but it still gives many Westchester residents a bit of breathing room after years under the restrictive $10,000 cap.

Deal of The Week 💸

28 Carolyn Way, Somers. Courtesy of OneKey® MLS.

🔥Hotness Factor: ♥️ 118 Favorites, 👤 1,168 Views, 🥇 10.1% Save Rate.

3 beds, 2 baths, ~1,944 sq ft on 1.73 acres
Classic 1923 home with oak floors, Viking kitchen, and sunroom
Outdoor perks: stone patio, fire pit, play area, chicken coop
Prime spot: walk to Purdys train, Somers schools

📃 Listing Report

✂️ Just Missed the Cut

Last Call: If you're planning a move in the first quarter or early in the second quarter of next year, now is the time to photograph your home, especially the exterior, while the trees are still full and curb appeal is at its peak. We can create your property media now and adjust the images to tone down the fall colors, giving them a more spring-like appearance. That way, everything is ready to go when you find your next home or make your move in 2026.

As Warren Buffett has said many times, “Preparation is everything.”