FEMA Format Appraisal, Of The Structure Only

[JAM]

Hello, has anyone done an appraisal requesting in FEMA format of the subject's structure only? Does that mean only the cost approach? I was going to put this on a GP - general purpose form since has nothing to do with lending. Anyways, I am looking for the proper FEMA format of the subject's structure only. Is this considered only the cost approach? The subject is beachfront property and is going through a FEMA issue with the outdated structural issues to comply with the proposed new renovations. Any assistance on the correct form and what else should be included and to look out for would be greatly appreciated.

 

[Michigan CG]

From what you have provided I would guess they want the value of the property without the land value. So I would GUESS you appraise the property and subtract land value. If this is the case you need to have very strong support for the value of the land.

 

[Terrel L. Shields]

Call FEMA and get their specs. IT is not about the land.

http://www.cityofmarcoisland.com/modules/showdocument.aspx?documentid=2462

 

[JAM]

Call FEMA and get their specs. IT is not about the land.

http://www.cityofmarcoisland.com/modules/showdocument.aspx?documentid=2462

Thank you Terrel and Michigan CG. I went ahead and purchased the Appraisal Institutes FEMA course on this and found out just now it's related to the cost approach, but the moderator recommended doing a full appraisal. Yes, I found a land parcel that sold right across the street and did an extraction method to get the land value. The thing that gets me is that a house built on waterfront is prone to more expenses such as permits related to the subject. The same house will not cost the same to build on the beach compared to the same house on a parcel of land where there is no waterfront view, etc...Any thoughts on this?

 

[JAM]

My it's getting late, goodnight appraisal forum buddies.

 

[hastalavista]

I had an assignment for insurance purposes recently that required the market value of the improvements only. As MICH states, supporting the site value is critical. Also important (obviously) are credible data sources for the construction costs, EI, and a supportable method for estimating depreciation.

Is this considered only the cost approach?

I suspect you may also have to complete some level of sales comparison approach to get to a current market value, as-is, to test the reasonableness of the rest of your analyses and conclusions in opining the structure's market value.

This isn't necessarily a difficult assignment. There are a number of moving pieces that, if you are not familiar with doing a more rigorous/detailed cost approach than what may be typically found in residential mortgage assignments, may cause some challenges.

I wouldn't use the FNMA form because the intended use is not for a mortgage finance transaction.

Good luck!

 

[JAM]

I had an assignment for insurance purposes recently that required the market value of the improvements only. As MICH states, supporting the site value is critical. Also important (obviously) are credible data sources for the construction costs, EI, and a supportable method for estimating depreciation.



I suspect you are may also have to complete some level of sales comparison approach to get to a current market value, as-is, to test the reasonableness of the rest of your analyses and conclusions in opining the structure's market value.

This isn't necessarily a difficult assignment. There are a number of moving pieces that, if you are not familiar with doing a more rigorous/detailed cost approach than what may be typically found in residential mortgage assignments, may cause some challenges.

I wouldn't use the FNMA form because the intended use is not for a mortgage finance transaction.

Good luck!

Thanks Denis DeSaix, I appreciate your advice.