Need to mention near earthquake zone?

[Vermonter]

A 5.8 quake in Virginia can crack the Washington Monument... and did. 2011. Landslides attributed to this event occurred over 100 miles away.

We felt that one in Northern VT 500+ miles away....maybe I should mention it in my appraisal reports

 

[Terrel L. Shields]

You can always just say "Earthquakes are occasionally known to be felt in the region and we are not experts in the identification of such hazards and make no warrantee implying the occurrence or absence thereof."

 

[sputnam]

You can always just say "Earthquakes are occasionally known to be felt in the region and we are not experts in the identification of such hazards and make no warrantee implying the occurrence or absence thereof."

We never have been. experts regarding natural events and we have never made warranties regarding natural events. What we can do, and are supposed to do, is state facts that are or may be relevant to the valuation. If a property is in or near an earthquake zone.. say so.... just like you do if a property is in a FEMA designated flood hazard zone. If there is an impact on value, and you don't have comparable sales that experience the same impact.... research the market and quantify the market reaction.

 

[Fernando]

We never have been. experts regarding natural events and we have never made warranties regarding natural events. What we can do, and are supposed to do, is state facts that are or may be relevant to the valuation. If a property is in or near an earthquake zone.. say so.... just like you do if a property is in a FEMA designated flood hazard zone. If there is an impact on value, and you don't have comparable sales that experience the same impact.... research the market and quantify the market reaction.

Earthquakes are hard to predict and if appraisers are not experts on the subject. If appraisers don't see an immediate or past adverse effect on subject especially with comps in close proximity to subject, no need to mention since market already "spoke" of its effects in immediate area.

Since you brought up FEMA, I was watching This Old House show and it was rebuilding/renovating homes in recent flood from a hurricane (I think it was in NC).
Since there was apparent flooding to those communities and could happen again (maybe not 27 feet of water but less), why rebuild or allow to have homes on those flood areas?
Why waste resources and time to rebuild homes there when no preventive actions have taken to fix the problem of future flooding?

 

[Tom D]

FEMA has learned some lessons. They will buy you out to stop rebuilding on their money. And now they will make you raise your floor level above some flood height. i'm sure that flood insurance prices will eventually make flood zones new vacant green areas.

 

[Carnivore]

So I ran into this same issue in my area. This has to do with what state/local codes about water heaters . There is a map that shows if I am in some type of earth quake zone. Depending on where your located , So I cant recall but I am just outside one zone thus I have less requirements for water heaters. Here is the bottom line, codes change. We all know this but it would be impossible to update all homes to new code changes. When I say we all know this except Fernando .

 

[Fernando]

So I ran into this same issue in my area. This has to do with what state/local codes about water heaters . There is a map that shows if I am in some type of earth quake zone. Depending on where your located , So I cant recall but I am just outside one zone thus I have less requirements for water heaters. Here is the bottom line, codes change. We all know this but it would be impossible to update all homes to new code changes. When I say we all know this except Fernando .

Many like you live in a bubble.
Government can make certain properties conform to current codes and laws forcing owners to make the changes.
Commercial properties have to change and modify buildings for ADA compliance.
If changes could be done to homes, government would but not many homeowners have money to retrofit to current codes or make the needed repairs.
It's easy to pick on the less vocal commercial property owners.

 

[Carnivore]

in my post I was specifically addressing single family homes. I should of made that clear to you. The others here our very smart and knew what I was talking about. You wiggled your way around my statement about residential home and building code changes and included commercial. Even in commercial the government may or may not require compliance with code changes. I still say the government building codes dept ann not compel residential properties to update these homes to current codes. They are grandfathered'

 

[Fernando]

My point is if they can, government would impose strict codes to existing older homes but because of the outcry of many who can't afford it, they don't have wide power.
Politicians are aware of outcry, recalls, and votes.
You can see how the less commercial property owners are penalized by politicians' rules because their votes are small.
Even apartment owners have association power and can bring lawsuits against government overreach.

 

[Terrel L. Shields]

no need to mention

The legal standard is that you should disclose any factor that is reasonably discoverable. If the houses down the street were wiped out by a landslide, then disclose and claim it is beyond your expertise. If you are valuing a property on the Hayward fault, you should mention it. So, ask your E & O provider (or is Fern so good he doesn't need E & O?) I would think especially after a disaster (LA fires, landslide events, earthquakes, floods, etc.) it would really behoove the appraiser to discuss and caveat the issue away as being outside your expertise. And if you read the disclosure forms on the contracts, what happens when the seller discloses cracked foundations, or other issues? Fern says ignore them, the Sgt. Schultz disclosure, "I see nothing!" https://www.liability.com/claim-alerts/appraising-after-a-natural-disaster.aspx