Flood Zone Issue

[Chris Murray]

Extensive research and appraisal flood map software indicate the subject property to be in flood zone AE - stated and defined in the original appraisal.
Outside company has now been hired, FIS Flood Services and determined that the subject is in flood zone BX. Is is OK for me to change original information, explain and rely on experts opinion?? Thanks!

 

[Restrain]

You have been given information that supercedes your initial data. Certainly, you can revise your report on the basis of an outside expert.

As an aside you should NEVER make a flood determination. Always state that the data is for informational purposes and is not intended to be a flood determination. There is extensive liability that goes with a formal flood determination that can come back and bite you.l

 

[Mike Boyd]

You have been given information that supercedes your initial data. Certainly, you can revise your report on the basis of an outside expert.

As an aside you should NEVER make a flood determination. Always state that the data is for informational purposes and is not intended to be a flood determination. There is extensive liability that goes with a formal flood determination that can come back and bite you.l

If you change it, I would make reference to an addendum you prepared to address the situation. In that addendum you should state YOUR source for the flood zone data and repeat what THAT source indicated. Then you should go on and state that you changed the flood zoning at the request of the lender based on the flood zone determination by XYZ Company.

 

[RSW]

I would also state that your initial source (state the source) showed the subject to be in zone AE and you are revising the appraisal report due to a more accurate source (provide that source). Just CYA.

 

[PropertyEconomics]

I think I would not change the flood indication .. if the FEMA maps have not been revised I dont care what another company says. I personally have never heard of a BX zone .. I know of B and I know of X .. but AEs are where base flood elevations are determined.
I think I would call for a flood elevation certificate and let a surveyor decide if the improvements lie within the elevation of the flood plain or not.

 

[Jo Ann Meyer Stratton]

I would include a copy of the flood map directly from the FEMA map center. You can click on the flood map to enlarge until your subject site is very clearly at the center of your computer screen, then click on the Print Screen key on your key board, go to a blank paper in Word Perfect (or something similar) and paste. Scan that into your report and then explain why you marked AE. Have you also checked with the applicable local flood management office? Has an elevation certificate been filed with that specific office? Get a copy and scan that into your file. Just did all of that for a similar assignment, however I did that for the original report so that there wouldn't be any questions coming back to me.

 

[Otis Key]

I think I would not change the flood indication .. if the FEMA maps have not been revised I dont care what another company says. I personally have never heard of a BX zone .. I know of B and I know of X .. but AEs are where base flood elevations are determined.
I think I would call for a flood elevation certificate and let a surveyor decide if the improvements lie within the elevation of the flood plain or not.

Ditto my Buddy in crime - I would not change it. I would scan the map I used and forward that to them. What is BX? As far as I know zones A & AE require flood hazard insurance and are to be indicated as "FEMA special flood hazard zones". Of course there are some coastal zones that I don't worry about from here.

But, if you're going to change it, which I wouldn't, you have to now indicate a new signature date and I would do as indicated by the ones who support it (but I wouldn't change it - the UW can do whatever they want to change any and all stips).

 

[Marcia Langley]

I would not change my report, either. I use on-line FEMA data/maps included in every report. I report exactly what it says and add language that neither FEMA nor myself guarantees the accuracy of the data and if the client requires further verification the are invited to obtain a flood certification from a qualified source.

I report my findings, they can take further action (and they all do). It is not necessary for my report to reflect their subsequent findings. Their subsequent findings from other experts are included in their loan package.

 

[PropertyEconomics]

I would not change my report, either. I use on-line FEMA data/maps included in every report. I report exactly what it says and add language that neither FEMA nor myself guarantees the accuracy of the data and if the client requires further verification the are invited to obtain a flood certification from a qualified source.

I report my findings, they can take further action (and they all do). It is not necessary for my report to reflect their subsequent findings. Their subsequent findings from other experts are included in their loan package.

You know .. thinking more about this .. I may change the report (and not the date) IF ... they were to provide me with a LOMAR (Letter of Map Revision) which showed the revision occurred prior to the effective date of my report. I could have missed that .. as they are not publically available .. but if provided one .. I would think it may be proper to change the report since the revision existed prior to my effective date.

 

[Mztk1]

Well, this happens to be me a lot. For whatever reason the flood maps in my areas often state "A" but after an elevation survey is done, or a flood certification completed, it is found that the improvements are just above the flood plain and not in the flood hazard zone.

Therefore, whenever I have a house in a flood hazard area, which is common and 99% of the time it has no effect on value, I state: "The subject appears to be in a flood hazard "AE" zone, which requires flood insurance. Flood locations are common in this market and have no measurable effect on value. The determination was based on internet flood map sources and my findings yield to any contrary finding by a current and qualified elevation survey or flood certifcation. If it is determined that the subject is not in a flood zone, there would be no measurable effect on the appraised value".

Of course this statement only applies in those 99% of the cases where there is no effect.

Still, I sometimes get a request to correct the report. I don't. I simply write an addendum which states something like: "I have reviewed the flood certification for the subject property identified above and it shows the subject is located in a "X" flood hazard zone. The finding contained in the report, that the subject is in an "A" zone, yields to this more qualified determination. There are no effects on value".

The only time I will revise the actual report is if the flood location actually does have an effect on value.