Yes/No Flood Hazard Area

[Jo Ann Meyer Stratton]

"I put "X" or "C" and "A" in the zone and check yes"

Yes would only be for "A" or variations of A.

No would be for "X" or "C" or "B" or any other letter than A.

 

[Doug Meyer]

Jo Ann they have flood zones out in the Arizona desert? :Eyecrazy:

 

[Terrel L. Shields]

Read Limiting Condition #3...

"...the appraiser has noted in this appraisal report whether any portion (my bold) of the subject site is located in an identified Special Flood Hazard Area."

If the principal structure is not located in the Special Flood Hazard Area, flood insurance is generally not required.

I believe both of those are correct. You have to report the site is in the flood zone. The issue of whether flood insurance is required or not is one that the lenders have to determine..not an appraisers call.

they have flood zones out in the Arizona desert?

bad ones....I remember a huge flood near Phoenix. When it is so stinking flat, a foot of water can really cause a problem. Just a garden variety toad strangler in Indiana...

 

[PropertyEconomics]

Jo Ann they have flood zones out in the Arizona desert? :Eyecrazy:

When you see the rains that can happen in Arizona and NM in a very short period of time ... Yes there are flood zones ... typically for very fast moving water ... most think of flood zones as being standing water ... it also can mean a 100 year storm or 500 year storm in which areas of the desert essentially become a raging river ... flood zones are very much real in this part of the country.

 

[Doug Meyer]

Just a little humor guys. One just does not typically equate flood zones with Arizona!

 

[Doug Meyer]

I believe both of those are correct. You have to report the site is in the flood zone. The issue of whether flood insurance is required or not is one that the lenders have to determine..not an appraisers call.
bad ones....I remember a huge flood near Phoenix. When it is so stinking flat, a foot of water can really cause a problem. Just a garden variety toad strangler in Indiana...

Garden variety toad!! My wife thought she got a prince when she kissed this old toad!! :laugh:

 

[Couch Potato]

As Terrel notes, if any portion of the site is in a flood hazard area, it must be noted in the report. IMHO, that does not automatically translate into checking the "Yes" box on page one any more than a small corner of the site being out of the hazard area would translate into checking the "No" box. It does mean the report needs to contain the information about a portion being in the flood hazard area. The single line does not cut it for reports on properties that cross boundaries on FEMA maps. More extensive explanations are required and the client should clearly understand a survey may be in order.

On properties with mixed flood zone designations, I do not believe it is truly appropriate to check either "yes" or "no" because neither one is a true statement by itself. I think the most appropriate choice would be to leave the boxes blank, the second most appropriate would be to check both boxes, the third most appropriate would be to check the boxes based on the improvements being at risk and the least appropriate would be to always check "yes" even if one square inch of the site is in a hazard area. An appraiser should always exercise reasonable judgement to provide the information requested by the scope of work to meet the needs of the client. The job is not to blindly fill out blanks on a form based on some decision tree checklist.

If you have good judgement, use it. If you don't have good judgement, become an underwriter.

 

[Richard Carlsen]

"I put "X" or "C" and "A" in the zone and check yes"

Yes would only be for "A" or variations of A.

No would be for "X" or "C" or "B" or any other letter than A.

If Jo Ann says it; do it!

Don't argue; just do it.​

 

[farmguy]

Well said Couch Potato.

That "An appraiser should always exercise reasonable judgement to provide the information requested by the scope of work to meet the needs of the client" statement is refreshing to see.

Normally the sentiment here is "meet the letter of the law and give them as little as possible"

I'm looking at our FEMA form and it appears they are interested in the buildings. We will often have large acreage with a creek bottom but a lot of land out of flood zone and a house on a hill or some such. We would want the appraiser to be decent enough to tell us the house is out of flood plain. We probably not hire one again that said "a peice is in flood plain so I am checking yes, it is your problem now"

 

[Marcia Langley]

Read Limiting Condition #3...

"...the appraiser has noted in this appraisal report whether any portion (my bold) of the subject site is located in an identified Special Flood Hazard Area."

Ditto. This question has to do with the site, not just the improvements. It is in the site section of the 1004. Additional comments could be included to explain how the improvements may be situated but be careful making a declaration you are not qualified to make.

The appraiser reports the facts, the UW decides what to do about it.