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14 APPRAISALS IN THE WAKE OF DISASTER Appraisers often find that, following a disaster, determining home values can be a challenge. A recent report from CoreLogic takes a look at the factors that impact the appraisal process following severe natural disasters, and why homeowners affected by storms and other disasters may seek an appraisal. When a home is partially damaged, a homeowner may seek an appraisal to help support a diminution in value in order to seek a reduction in property taxes. ese "as-is" property value opinions could be hard to quantify because the damage may impact the true market potential of the property. If a home is completely destroyed, it can create more challenges. It may be impossible to determine the home's quality and condition prior to destruction, and some homes, such as those destroyed by wildfires, may not be able to adequately offer local sales comps. Even if a house is still intact, the damage on a surrounding area may still negatively impact homes value. Loss of vegetation and changes in market conditions due to natural disasters may play into a home's value, despite a lack of damage. Additionally, the risk of further catastrophe may impact appraisals. CoreLogic notes that the fear of hazards such as wildfires or floods returning in the near future may impact values and delay the rebuilding process. e report also notes how policies can cause the values to vary, and that policy is often determined not by the appraisal or assessment, but by the reconstruction costs, which unlike an appraisal, captures all of the additive costs associated with rebuilding after a loss. Without proper insurance, many homeowners impacted by a natural disaster may be forced into foreclosure. According to Frank Nothaft, Chief Economist for CoreLogic, "e disruption of a family's regular flow of income and payments, as well as substantial loss in property value, can trigger mortgage default; especially if homeowners are underinsured and cannot afford to rebuild." e report concludes that "if information is power, then having full disclosure of a property helps protect families and businesses from financial catastrophe." When a home is partially damaged, a homeowner may seek an appraisal to help support a diminution in value in order to seek a reduction in property taxes. ese "as-is" property value opinions could be hard to quantify because the damage may impact the true market potential of the property.