Janine Starks looks at the various shades of grey in a green-blue zoning conundrum and sees nothing
Green-blue trapped
This is a really tough one. The ability to sell a home on green-blue land (Technical Category 3 or ‘TC3’) could be very difficult. It all hinges on the actions of a number of groups of professionals; EQC, insurers, bankers, real-estate agents and lawyers. They all have the potential to increase the barriers to a sale.
The ‘TC3’ label could cause problems across the board, for re-selling. While the category only applies to houses with foundation damage, this is a bit of a farce. Even if you have no damage, your land may suffer “moderate to significant liquefaction” in a new event. That has got to be a big red flag to future buyers. The resale issue is not going to be isolated to the hard-hit areas, when we face a decade of seismic activity.
I hear so many people say “I’m on TC3 land, but we’re really lucky our foundations are fine.” I think that’s misguided. It is possible that a good number of TC3 home owners will end up worse off financially than those in the Red Zones – especially those who are not getting new foundations. The erosion of equity is a real risk.
Here’s my thoughts on how the professions involved could impact the situation: … see link below for the full article and discussion
