Earthquake / Seismic comments?

[V. Nightshade]

Recently in San Francisco there has been a spate of articles about the vulnerability of SF housing stock to earthquake -- lots of houses built over garages. (Actually, this comes up every couple of years.) Does anyone make any kind of standard comment on seismic retrofit -- or actually lack of -- in their California, and particularly, S.F., appraisal reports? Does FHA require comment on this in earthquake zones?

 

[Metamorphic]

Buyer's are supposed to get an notification if they're in an earthquake hazard zone, but that's separate from appraisal practice.

As for retrofit, I wouldn't want to be in the position of verifying compliance, effectiveness, or the necessity. But if in the process you found data that some were and some weren't compliant I'd sure look for an adjustment there. It wouldn't surprise me if the homeowners insurance was keeping track of that and had some level of expertise and knowledge; you might try and chat up one of those guys. I'd say this is one of those situations where you get to flex some geographic competency.

 

[V. Nightshade]

Thank you. When properties have renovated systems/foundation etc, (and the SF market does value that considerably!), I incorporate it into a condition adjustment; I wouldn't make a separate adjustment for seismic. I was mostly interested in the general case of these old properties.