FEMA 50% Form

[Dublin ohio]

client is the homeowner who wants to prove FEMA is too low!

What is the homeowner basing their value on. What is FEMA basing their assessment on?

 

[TerryRohrer]

I don't think you will get a consistent, credible recommendation regarding "which" form. The process seems too complex to rely on a form, and should force you to think about every word in your appraisal. That lends strength to the recommendations to do a narrative report. The following is a pretty good view of the overall process that may help. If you don't have a narrative template, purchase a copy of the 15th Edition of The Appraisal of Real Estate, which includes a chapter on The Appraisal Report. I followed their pattern about 30 years ago and use it to this day.

https://www.carrollandcarroll.com/wp-content/uploads/2021/01/The-50-Rule-FEMA-Appraisal-2017-Q3-Appraisal-Journal.pdf

https://www.appraisalinstitute.org/getmedia/7e26d819-2b6e-4597-aa90-708edb8050de/0826m_toc

 

[Sadie]

i have read all kinds of these....but need to know what "form" to use. Its NOT for lending, client is the homeowner who wants to prove FEMA is too low!

Surely your clients received some form of communication with their insurance company. Ask for copies so you can have the verbiage FEMA is looking for. I believe FEMA is looking for the ACV. The ACV is the cost to replace a building with a new one of similar quality and kind, minus depreciation I would do a land form imbedded with a GPAR form so you will be able to separate out the land value. Or a stand alone cost approach. Then provide a cover letter that summarizes your results

• Separate the land value from the total property value
• Estimate the cost of site improvements and other structures
• Assesses physical depreciation

The form is just a convenient way to show how you arrived at your conclusion.

 

[sputnam]

GP form.

 

[Mark K]

I'd be very thorough especially in regards to the land value vs. the total value of the property. If its like my sister's house in Englewood, FL, there's a huge component of land value. She paid $850K a couple years ago and the local vacant lots are selling for $700K. Bottom line, her improvements are worth $150K. A GP form with a lot of supporting data would work. You'll need a good cost approach and support for the improvement's depreciation. Personally I'd charge about 3-4X the normal mortgage fee, even at that I'd likely encourage them to find someone else. I get the feeling that this is one that you'll eventually wish you'd passed on.

 

[Tom D]

The best cost estimators are FHA approved, for their rehab loans. They do a segregated cost breakdown and are pretty accurate. They charge around $700-1000 depending on the size of the project. That would be attached to my brilliant analysis. And all of you think you can do a really good 1 page cost approach. "If you get it wrong, i'm hiring the $1,000 one to make you look bad in court.

And how much are you charging for this report.