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Appraising Actual Cash Value and Permits

Appraising ACV for Construction Permits

Actual Cost to Construct

Appraising ACV for Permits

Appraising ACV for Permits. As an Appraiser I work with homeowners, builders and Realtors on a daily basis. When the subject property is situated within a designated flood zone, things can get a bit complex. I hear the same words repeatedly. Those words are “I had no idea”.

The scenario that prompts these words is typically something like this…The consumer purchases a house. The property is not waterfront but is in a flood zone that requires flood insurance in order to secure a loan. The Realtor does their due diligence and advises the home is within the 100-year flood plain. The buyer may mention the likelihood of renovations in the future. The loan closes and everyone goes on their merry way.

Shortly into the future, the homeowners prepare for renovations. They may decide to update the kitchen, bathrooms or enclose a porch. They hire a contractor and head to the permitting office.

The permitting office is where they learn the dollar amount, they are allowed to spend on renovations according to the FEMA 50% Rule. This is half of the actual cash value of the allowable areas, less depreciation, land, land improvements and infrastructure. This allowable amount is typically far less than desired.

I Had No Idea!

This is the point where they say…I had no idea! Often the Realtor and Contractor had no idea either. Until you are faced with it, most don’t hear about it. The guidelines have become much more stringent and will impact more people with additional mitigation zones.

Hiring an appraiser, most importantly with experience in Actual Cash Value appraisals can help. Permit appraisals in FEMA zones can help the homeowner to glean additional allowable monetary amounts. For further information, please contact Shari Peterman 727-505-6706 speterman@tampabay.rr.com

https://www.newfloodmap.com/

FEMA Compliant Actual Cash Value Appraisals

FEMA Compliant Appraisals

Actual Cash Value Appraisals

FEMA compliant Actual Cash Value Appraisals that adhere to the 50% rule are more important than ever. In light of all the damage due to the recent storms it is more important to focus on prevention than ever before. An ounce of prevention is worth a pound of cure, Benjamin Franklin. This beloved quote is particularly relevant when facing a Florida storm surge.

Preparation is Key

Homeowners with homes built to older codes are particularly vulnerable to rising water caused by storm surges. It is important that owners prepare their property prior to storms. This will likely minimize damage. When repairs or improvements are warranted, there are things to know about permitting.

Renovations that require permits can be tricky in FEMA assigned flood mitigation areas. These are typically those of substantial improvement, including electrical and/or plumbing, to name a few. An actual cash value appraisal report can assist in the approval of the maximum allowed under the FEMA guidelines. Visit https://www.fema.gov or your local municipality for details.

Very few appraisers are experienced in the new actual cash value requirements. I have and continue to educate myself in the ever-changing requirements and/or interpretations. Give me a call or e-mail if I can assist you in this matter. Shari

727-505-6706

For more information, please visit us on social media www.priorityappraisalfl.com, http://linkedin.com/in/shari-peterman-asa-ifa-2876795.

speterman@tampabay.rr.com http://Real Estate Appraisal – home appraisal – appraiser – real estate appraiser – residential appraisals – New Port Richey, FL – Priority Appraisal and Mortgage Services, Inc. (appraiserxsites.com) https:/www.facebook.com/priorityappraisaltampabay

ACV Permitting Appraisals

Actual Cash Value Appraisals

Actual Cash Value Appraisals: Federal Emergency Management Agency (FEMA) have new requirements. Participation in the National Flood Insurance Program (NFIP) requires additional responsibilities. Properties within the flood hazard zones must comply with requirements as it applies to structures. The Flood Plain Administrator and local offices are responsible for application of the NFIP/FEMA requirements.

Know Your Flood Zone

Know Your Zone ttps://www.FEMA/maps.

Structures that adhere to the current codes do not need to comply with additional requirements such as an actual cash value appraisal. Therefore, elevation by either construction or land build up may adhere to current requirements. In this case only the typical building codes impact the permitting process. Conversely, structures that do not adhere to NFIP/FEMA codes require additional efforts.

FEMA would prefer removal of non-conforming improvements. Demolition and removal of the structures can be costly to the owner. As a compromise, the NFIP adopted the 50% rule. This allows for the continued use of older buildings. The 50% rule limits the actual cost of construction at any given time, thereby reducing the risk to the NFIP.

Upon application the permit department can inform the applicant of the dollar limit of the new improvements. In some counties, the FEMA letter is on the county appraiser site as it relates to the property address. For instance, should this amount be less than needed, the property owner has the option to explore actual cash value appraisals.

Most importantly, have the report completed by a State Certified Appraiser with experience in preparing actual cash value reports for FEMA compliance. The reports developed for this specific purpose are vastly different than those developed for lending or insurance. Despite years of experience, it is imperative that the appraiser is familiar with the new requirements. For further information on actual cash value appraisals for the FEMA 50% rule contact Shari Peterman at 727-505-6706 for more info visit https://www.fema.gov