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Yes/No Flood Hazard Area

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Walter Skaggs

Thread Starter
Freshman Member
Joined
Jun 23, 2004
Professional Status
Certified General Appraiser
State
Montana
If the lot lies in the 100 year flood plain but the residence is not do you click the yes or no box for flood hazard area?

I've always checked yes and explained, however I've got a mortgage broker who is insisting I check no because the survey shows the residence in not in the flood zone. (but 1/2 the lot is)
 

Jerry Lieb

Junior Member
Joined
Aug 14, 2004
Professional Status
Certified General Appraiser
State
California
Walter - It's my understanding that if any portion of the lot is in a flood plain, whether or not the actual structure is in it, it must still be shown as being in the flood plain. I don't recall where I heard this - probably at a seminar.

I'm sure others will come in here to give their suggestions.

Good luck.

Jerry
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I put "X" or "C" and "A" in the zone and check yes, then in the site section I state that per the survey the improvements are not in the flood zone and flood insurance is likely not required. I add a comment about deferring to any contrary finding via a flood certification, and state whether or not it influences value or marketability. I will also check my comps and hpe to find one with a similar location. That's about it.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I believe that fannie now says that you must check the box if any part of the site lies in a flood plain. It is up to the lender. It is in their ball park.
 

AL LLANOS

Junior Member
Joined
Apr 28, 2006
Professional Status
Licensed Appraiser
State
California
Most likely the lender will rely on another source other than the appraisal for the flood zone data, regardless of what you mark it. That has been my experience on those too close to call.

Al
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I put "X" or "C" and "A" in the zone and check yes, then in the site section I state that per the survey the improvements are not in the flood zone and flood insurance is likely not required. I add a comment about deferring to any contrary finding via a flood certification, and state whether or not it influences value or marketability. I will also check my comps and hpe to find one with a similar location. That's about it.

I agree with the other posters and Jim here, except I would take out the part that states "and flood insurance is likely not required". No need to go there, that is not our call.
 

Dominic

Sophomore Member
Joined
Jan 23, 2006
Professional Status
Licensed Appraiser
State
California
Read Limiting Condition #3...

"...the appraiser has noted in this appraisal report whether any portion (my bold) of the subject site is located in an identified Special Flood Hazard Area."
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I'd check "No."

The Fannie selling guide says:
XI, 404.06: Special Flood Hazard Area (11/01/05)
If any part of the principal structure is located in a Special Flood Hazard Area—zones A, AE, AH, AO, AR, A1-30, A-99, V, VE, VO, or V1-30—flood insurance is required. If the principal structure is not located in the Special Flood Hazard Area, flood insurance is generally not required.
Personally I include a flood map from my service provider. I put what that map says in my report. If I had a survey showing the improvements are not in a flood plain, I would check the "No" box.
 

hglenbetts

Senior Member
Joined
Dec 3, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
The insurance company insures the improvements, thus the comment about none needed (flood insurance) if the structure is outside the flood plane.

If your SOW includes appraising the real estate with the improvements, the subject of the assignment lays within the flood plane.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I put "X" or "C" and "A" in the zone and check yes, then in the site section I state that per the survey the improvements are not in the flood zone and flood insurance is likely not required. I add a comment about deferring to any contrary finding via a flood certification, and state whether or not it influences value or marketability. I will also check my comps and hpe to find one with a similar location. That's about it.

I agree....but in my market area an elevation certificate is required. Sometimes this is available from the building department and any survey must show the elevation. Then, the building department will issue the certificate.
 
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