A California appraiser is valuing a property near the Hayward Fault in the San Francisco Bay Area. Two comparable properties recently sold: one in a designated Alquist-Priolo Earthquake Fault Zone and one outside the zone. The subject property is within the Alquist-Priolo zone. How should the appraiser address this in the sales comparison approach?
Correct Answer
B) Consider both comparables and make appropriate adjustments for the Alquist-Priolo zone status, recognizing that properties in designated fault zones may sell at a discount
Under California's Alquist-Priolo Earthquake Fault Zoning Act (Public Resources Code §2621 et seq.), properties in designated fault zones carry disclosure obligations and potential development restrictions. An appraiser should consider both comparables and make market-based adjustments. The impact on value depends on local market data, not a predetermined percentage.
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Previous Question
A property in Alameda County, California sold and the county documentary transfer tax was $825. Alameda County charges $1.10 per $1,000 of the sale price. The City of Oakland charges an additional city transfer tax of $15.00 per $1,000 for properties over $300,000. If only the county transfer tax of $825 was recorded, what was the sale price?
Next Question
A California appraiser applies paired sales analysis to measure the market impact of a Mello-Roos special tax. Home A, located within a Mello-Roos district with an annual special tax of $5,400 and 22 years remaining on the bond, sold for $1,180,000. Home B, an otherwise identical property outside the district, sold for $1,225,000. What does the paired sales analysis indicate as the market-derived value impact of the Mello-Roos burden?