This article was published in Appraisal Journal.
Abstract:
Appraisers may have valuation assignments related to properties along coastline sand in flood zones. These assignments come with many special considerations. Appraisers conducting “50% FEMA Rule” appraisals of properties in flood-prone areas must be well acquainted with numerous and varying rules and regulations set forth by the Federal Emergency Management Agency (FEMA). Appraisers need an understanding of construction techniques and materials as well as the appropriate valuation methods and the components that should and should not be incorporated in the appraisal. This article discusses the unique aspects of a 50% FEMA Rule appraisal related to a determination of whether substantial improvements or damages equal or exceed 50% of a structure’s value.