Flood Zone

[Mark K]

Therefore, increased development reduces the TOC and increases the flood height.

Not necessarily. Any commercial or residential development that takes place in this area must have sufficient on-site detention and retention areas to ensure that any water that drains cannot drain any faster after development than before. Hence, a lot of new retention ponds (Canada Geese magnets), sometimes very large, in any new development.

Hell, when I built my last office building 25 years ago on 0.5 acre, I had to put in a small, 2,000 sf, detention area with an 8" dia. inlet pipe and a 4" outlet pipe, 1' higher in elevation than the inlet, to slow the water from the 20 car parking lot and 3,000 sf building.

 

[Terrel L. Shields]

Not necessarily. Any commercial or residential development that takes place in this area must have sufficient on-site detention and retention areas to ensure that any water that drains cannot drain any faster after development than before.

That applies to subdivisions. Same here but even so, it's an engineer's best estimate and not necessarily accurate. And road widening, etc. rarely have any retention ponds. And cutting trees to make way for a golf course....cropped, compacted grass sheds water faster than trees.

 

[Mark K]

That applies to subdivisions. Same here but even so, it's an engineer's best estimate and not necessarily accurate. And road widening, etc. rarely have any retention ponds. And cutting trees to make way for a golf course....cropped, compacted grass sheds water faster than trees.

Of course the State and Feds are always exempt to the laws, re: road construction.

And golf courses generally create a lot of ponds, affectionately referred to as 'water hazards' that capture surface water (and golf balls) for irrigation purposes. They're building two new, very nice golf courses up the road and I doubt that much water will leave those courses, very likely less than prior to construction.

Neither of these two courses have any ponds or lakes currently.

 

[Fernando]

When appropriate, I may state appraiser not aware of any flooding (or landslide) in immediate area (or such distance) in the past, as additional information from my decades of experience.

 

[Mike Ault]

When appropriate, I may state appraiser not aware of any flooding (or landslide) in immediate area (or such distance) in the past, as additional information from my decades of experience.

Your E & O insurance is going to deny coverage on any claim against you with verbiage like that in your report. You're supposed to be appraising the property, not selling it.

 

[Fernando]

Your E & O insurance is going to deny coverage on any claim against you with verbiage like that in your report. You're supposed to be appraising the property, not selling it.

I'm stating a fact based on my knowledge of such events.
In the past like over 30 years, if I knew of a past incident I would mention it unlike many appraisers especially young and out of area appraisers.

 

[Mike Ault]

I'm stating a fact based on my knowledge of such events.
In the past like over 30 years, if I knew of a past incident I would mention it unlike many appraisers especially young and out of area appraisers.

You're making an unsupported assumption about detrimental environmental issues the property you're appraising might be subject to. You're not setting a reviewer's mind at ease, any competent reviewer thinks you're an idiot for making such statements. And when the house does flood, the borrower will be really pissed that they didn't buy flood insurance based on comments you made about your "30 years of experience". Go forth and sin no more.

 

[Fernando]

You're making an unsupported assumption about detrimental environmental issues the property you're appraising might be subject to. You're not setting a reviewer's mind at ease, any competent reviewer thinks you're an idiot for making such statements. And when the house does flood, the borrower will be really pissed that they didn't buy flood insurance based on comments you made about your "30 years of experience". Go forth and sin no more.

I sometime asked occupant/owner if he/she experienced any flooding during their period of stay/ownership.
Statement from occupant/owner in report, not quoted from me.

 

[Sadie]

If in fact there is no LOMC or LOMA, then you are correct. regardless of how old the maps are, FEMA is still the determining factor. They are the ones that will require insurance. What does the lender think if this gets caught in an audit or if it actually floods and there is no insurance? Also check your state board and see what would happen to the AMC license if they pressure you to change an item of fact? All states are different, but the AMCs are supposed to adhere to whatever statutes your state requires for licensing. Here, they can be sanctioned for something like this. But this is a last case option, IMO.

 

[Sadie]

Whatever you say bud-

"About 75% of the nation’s flood insurance maps are outdated, leaving the door open for property owners to seek their own flood mapping and appeal."

https://www.nbcnews.com/science/environment/water-femas-outdated-flood-maps-incentivize-system-risk-negotiable-rcna220529

Doesn't matter how outdated the maps are, they are the final determinant. FEMA makes the call, not anyone else.

But people do get LOMAs and LOMCs so check for that too.