hal380
Senior Member
- Joined
- Apr 26, 2003
- Professional Status
- Certified General Appraiser
- State
- Connecticut
Good Morning all:
Doing an appraisal, and sure enough subject and one comp is located in A5 zone. Other comps not in flood area. The area does not LOOK like its in a flood area, so the typical buyer would only find out after the appraisal in most instances.
How do you quantify the effect? How do you mirror the typical buyer's reaction to a flood designation?
A- Deducte the monthly flood insurance premium from the mortgage budget and therefore you buy a smaller house cus of less mort. money?
B- Increase the value because the house is situated on a nice trout stream or bass lake. (not the case of my assignment)
Any thoughts would be appreciated.
Regards
Hal
The appraiser must quantify the effect on value, if any, for properties within a designated flood map
Doing an appraisal, and sure enough subject and one comp is located in A5 zone. Other comps not in flood area. The area does not LOOK like its in a flood area, so the typical buyer would only find out after the appraisal in most instances.
How do you quantify the effect? How do you mirror the typical buyer's reaction to a flood designation?
A- Deducte the monthly flood insurance premium from the mortgage budget and therefore you buy a smaller house cus of less mort. money?
B- Increase the value because the house is situated on a nice trout stream or bass lake. (not the case of my assignment)
Any thoughts would be appreciated.
Regards
Hal