I got a kick out of this aerial image. I have three appraisals in my bag right now in the City of Galt from a very loyal client, and during the course of research I came across a property located near F Street right next to the Galt water tower. This was a potential comp that I didn’t end up using.
A water tower like this is something that should be disclosed in the appraisal report because it could be a potential hazard if it fell. That wouldn’t be good. Additionally, there may be a reaction in the marketplace for the location. Some buyers would pass up making an offer on this property, whereas others might not care. Ultimately, through the course of research, the appraiser needs to come to a conclusion if there is any value to be assigned to the location based on what the market is showing, and if so, how much that reaction is worth.
I’m curious to hear from home owners or prospective owners on this topic. If your property is located next to a water tower or within fall distance of another type of structure (power tower), have you encountered any difficulties with financing or reselling your property? Or if you were in the market to make a home purchase, would such a location be a turn-off or no big deal?
Your comments are welcome below. Thanks so much. I really appreciate everyone visiting my blog.
Although conventional wisdon would say there will be negative market reaction we should always test, measure, and verify if this is the case. I once did an appraisal on a property where there was a suicide in the home and while there was not an abundance of market data there was enough for me to determine that no adjustment was warranted. Sometimes we have to overcome our own preconceived notions.
Good point, Tom. You are definitely right about that. It’s interesting to consider suicide. Some people care and others don’t. That is a very personal decision. I suppose it depends too on who lived there and how the person killed himself/herself. It sounds like you did a good job for that appraisal.
I got denied for financing for a home because of the location was in the fall zone of the water tower, the only way to purchase now is an in house loan of 20% down and repairs made or a cash offer, now I wont be buying it because of the hassle it will cause if I try to resell it. I personally find it ridiculous that I cant get financing for because of it.
I’m sorry to hear it didn’t work out for you Matthew. This sounds like it was maybe FHA financing you were using. How do you know it is within the fall distance? Is it painfully obvious or did someone actually measure it?
My home is under contract and the lender waited a week before closing to send an appraiser. We live diagonally across from a water tower. The lender denied an FHA loan based on the fall zone and proximity of our house to the tower. When we purchased the house 9 years ago with a conventional loan, we didn’t have any issues. Our closing is now pushed back a few weeks while the buyer’s beg their relatives for money to switch to a conventional loan.
Wow, PJ. I’m so sorry to hear that. How frustrating to have everything lined up, but then have issues at the last-minute due to location. Is your house definitely located within the fall zone of the tower?