Tornado Appraisals

[Tim Hicks (Texas)]

Alright, I live and work in tornado alley, too. But, somehow I have never been called to do a "post tornado" appraisal for a damaged or demolished home. It would seem in today's market with tax protests, re-considerations of value for home equity loans, PMI removal, etc., that there would be consumers demanding pre-tornado appraisals to protest their insurance settlements. Does this happen in your part of the country? My curiosity was aroused when I saw the footage of Oklahoma and Tennessee tornado damage.

 

[Mountain Man]

Maybe a market there. But most home owners I know, in a newer house, have a "replacement" policy. I know that leaves a lot of wiggle room for the aturnies, but just try and prove hysterical value in tornado alley.

 

[Blue1]

Did some "after fire" appraisals here but they were done for insurance companies to establish just before fire value. Basically retrospective assignments.

 

[xmrdfghap]

You know that the adjusters have programs that tell them what a home will cost to rebuild. With most policies, anymore, being the type that covers replacement, depreciated value or market value is irrelevant. They pull it out of the book, add the motel/renthouse expense, and start cutting checks. Unless they purchased within the past few months, the cost to replace will give them adequate "value" to remove PMI anyway.

 

[matt_johnson]

I agree with Greg. I did a lot of appraisals in Moore for people who had rebuilt after the tornado in May of 99. Some of the stories I heard were incredible.

Last night was the first time since I was a little kid in Broken Arrow (Greg's town) that I actually was ready to take shelter. The tornado was on a path that it would have taken it to my front door. Fortunately, it didn't continue on that path.


Matt Johnson
AppraiserDepot.com
LaserMeters.com

 

[Mike Simpson]

You guys can have your tornado's...I'll take my terror in the form of an earthquake thank you. Something about a mile wide monster dropping out of the night sky throwing cars around, and sucking homes off the planet just scares the hell out of me!!! I've never been in an earthquake large enough to kill me (I'm knocking on my cherry wood desk), and actually found them quite interesting to watch once I make it outside. It's oddly fascinating to watch the earth turn to jello. You do have to become adept at determining which way the trees or power lines might fall...but, that comes with experience.

I think you'll find that these tragedies will get settled without the aid of an appraiser. I also have done after the fact fire appraisals. My clients want to know what the properties worth as it stands and as repaired, and if it's to be repaired what are the cost and details or work required.

After the last earthquake (2/2001) I had one former client call me, and request I give them a letter stating that the foundations of homes I'd appraised over the past 3 months were without damage as a result of the quake. "Do you know what that'll take," I asked. I explained that even though I wasn't qualified to perform such assessments, and even though my insurance company wouldn't cover me (I checked), whoever was going to provide this service would need to gain access to the crawl spaces and basement of every home to determine if there was any damage.

This former client (I dumped them) made it quite clear all they wanted was a letter stating that there was no damage to the foundations--no need for me to reinspect the homes (I should be able to tell from the outside according to them), and they were even kind enough to provide me with the amount I was to be paid for this service (how nice of them).

It's funny, but I've heard LO's w/this firm actually call appraiser's "paranoid," or "conservative." Only a lender w/nothing to lose would tag an appraiser with an industry smear when they refuse to perform a service they're not qualified to do, and will not be insured if they decide to do so. Sad part is I think they found another appraiser to do it (some people have a lot of brass).

-Mike

 

[Restrain]

The only appraisals that I have done was where there was a new loan for construction to rebuild. I have done "damage inspections" for lenders, i.e., is there any obvious damage to the house at zzz street. Otherwise, it's all insurance companies.

Roger