Flood Zone
A FEMA-mapped designation of flood risk. Properties in Special Flood Hazard Areas (zones A and V) require flood insurance for federally related mortgages — a carrying cost the market prices into value.
Every lender appraisal reports the FEMA flood zone, map panel, and effective date. The valuation question is market reaction: in some markets waterfront premium overwhelms insurance cost; in others, rising premiums measurably discount flood-zone homes. The appraiser compares sales inside and outside the hazard area to extract the local answer rather than assuming. Flood maps also change — a remapping that pulls a home into a hazard zone is the kind of external event that changes value without the property changing at all.
Related Terms
Adverse Site Conditions
Negative influences on or near a property — busy roads, power lines, drainage problems, incompatible adjacent uses.
External Obsolescence
A loss in property value caused by factors external to the property, such as a busy highway, industrial proximity, declining neighborhood, or unfavorable zoning changes.
Location Analysis
The evaluation of a property's position relative to surrounding land uses, transportation, employment centers, schools, amenities, and negative influences.
More in Property Characteristics
View allGross Living Area (GLA)
GLAThe total finished, above-grade living area of a residential property, measured in square feet.
Gross Building Area (GBA)
GBAThe total area of a building measured from the exterior walls, including all finished and unfinished, above-grade and below-grade spaces.
Below-Grade Area
Any portion of a building that is below the ground level on any side.
ANSI Z765 Measurement Standards
ANSIThe American National Standards Institute standard for measuring residential floor area.