Remodel or Addition in a FEMA “Flood Zone ”     https://msc.fema.gov/portal/home

When improving a property in a FEMA Flood zone you must comply with the 50% Rule.  Typically, one should determine the value of the improvements prior to the renovation. By determining the Actual Cash Value of the improvements you will be able to know what can be spent on the remodeling project or addition.

Property Appraisers Office

Many time the appraisers office has a market value indication for each property.  https://www.miamidade.gov/Apps/PA/propertysearch/#/ 

However, this figure is typically lower than the Actual Cash Value.  Additionally, many times property owners appeal the taxes to get a lower tax bill. This could work against you when pulling a permit.

Getting the right Appraisal          https://femaappraisals.com/

An Appraisal or FEMA specific appraisal is used to determine the ACV of the home or building.  The client needs to understand what this actually means.  Many time we think of a typical appraisal used for financing.  We usually get one of these appraisals when we purchase a home, we have all seen them.  The typical form report with comparable sales and a bunch of canned language.  Some pics a map and a value.  For a FEMA Appraisal you need “Actual Cash Value”

Actual cash value (ACV) is the cost to replace a building on the same parcel with a new building of like-kind and quality, minus depreciation due to age, use, and neglect. ACV does not consider loss in value simply due to outmoded design or location factors.

The appraisal need for FEMA is quite different. FEMA offers guidelines for what is required in a FEMA Substantial Improvement Appraisal.  The guide offers the do’s and do not’s. What can and cant be included.

Some of the common errors included:

Using the Fannie May for 1004

Including land value

concluding market value

This type of appraisal is not the typical appraisal used everyday.  These reports have specific requirements.  Municipalities are becoming more familiar with the FEMA requirements and more stringent on what will be accepted.

Feel free to reach out to me with any questions or comments.   https://www.dadeappraisals.com/

email info@dadeappraisals.com