That is my favorite disclosure since anywhere in the Bay Area and the better part of the LA are pretty much fall into SOME sort of earthquake zone. This is good information to know and helpful when considering the purchase of earthquake insurance. Generally speaking zones are figured into comparable home pricing and all other things equal should not significantly affect a single homes value (though it may for an area and would consequently be factored into the price of recent closed properties)
Welcome to California!!
As stated below, homes sell even though they are in fault zones. Or on top of a fault, even. The purpose of the Natural Hazards Report is to disclose, on the sellerâ€™s behalf, any and all known geological issues. Iâ€™m guessing every home up and down the block on either side of the home you are buying is occupied â€“ itâ€™s a part of the life in the sun we all enjoy in the Golden State. And every once in a while, we grab onto solid objects and ride out the next one â€¦
Most of the homes I sell fall into that category. Sometimes they are even sitting on top of a major fault. Does it effect re-sale possibilities? It doesn't appear to. Most of the buyers, especially California natives, just take the view that "Hey, it's California. We have earthquakes!". Buyers from outside California vary in their levels of concern. These are generally the ones that buy earthquake insurance policies (which are not inexpensive, even with high deductibles). Locals tend not to buy such policies.
Once you have a purchase agreed, one of the first things you should do is to contact an insurance company ( I personally like Farmers Insurance) and make sure that there will not be any problem getting it insured. This is essential as you won't be able to get a loan unless the home is covered by home owners insurance.
Good luck with your purchase.
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - email@example.com
Part of your inspection process is to call your insurance company and give them the address of your new property and get a quote for homeowners insurance. You should also get a quote for Earthquake with as high a deductible as you can mentally tolerate.
Reality Check; How old is the house you are buying? How did it do in the Loma Preita quake? Next one is coming, today or years from now, but it is coming. Do your homework, be prepared, be insured and enjoy your new home!