Hurricane FEMA Appraisal
Servicing Sarasota, Bradenton, Lakewood Ranch, Longboat Key, Siesta Key, and the surrounding Southwest Florida areas.
What is the 50% FEMA Rule?
To summarize, the spending limitations for proposed improvements are 50% of the value of the structure. If the cost of improvements, or the cost to repair a building to its pre-damage condition, does not exceed 50% of the value of the building, the building can be repaired without needing to meet the current floodplain management standards. If the cost to repair the building exceeds the 50% threshold, the building must be brought up to the floodplain management standards.
How is the value for the 50% FEMA Rule established?
There are two (2) values that can be used to see if you meet The Rule. (1) The value provided by your municipality, or (2) an appraisal. Section 4.5.1 of the FEMA Desk Reference states: “Property appraisals that are prepared by a professional appraiser according to standard practices of the profession are the most accurate and reliable method for determining market value.” The Desk Reference clarifies that land, land improvements, and accessory buildings are not to be included in estimating the value.
Competent appraisers have concluded Actual Cash Value (ACV) is the best valuation method for the FEMA Rule. ACV is calculated as the cost to replicate the building, minus depreciation. ACV = Building Reproduction Cost – Physical Depreciation. ACV does not involve the use of comparable sales, and it does not include the value of the land.
A FEMA appraisal differs from a traditional appraisal in the following ways:
Narrative Form:
FEMA appraisals are written in narrative format, unlike traditional appraisals which are on a form.
Actual Cash Value (ACV):
FEMA appraisals report the ACV, which is the cost to replicate the pre-damage building minus depreciation for wear and tear. Traditional appraisals provide a different type of value.
Exclusion of Land:
FEMA appraisals do not include the value of the land, land improvements, or accessory buildings. Traditional appraisals include these elements which are not relevant to the 50% FEMA Rule.
Purpose & Method:
Traditional appraisals use recent sales to develop a value. FEMA appraisals, on the other hand, are specifically for determining compliance with the 50% FEMA Rule and require a FEMA-experienced appraiser.
What steps should be taken to comply with the 50% FEMA Rule?
- Contact a licensed contractor(s) to estimate the cost for repairs or renovation.
- Order a 50% FEMA appraisal from a licensed appraiser who specializes in 50% FEMA appraisals. It is important to have a FEMA-experienced appraiser perform this unique service, as FEMA does not accept traditional appraisals in most municipalities for this purpose.
- Apply The Formula to the ACV to determine if the cost of repair or renovation is under the 50% threshold and factor this into your decisions.
- Contact the building department for a permit. The local building department will use the 50% FEMA appraisal in the permitting process to determine if the work on the property will be a substantial improvement (require update to current flood requirements) or a repair of substantial damage (allow repair of existing building).
Contact Information
Contact Request
Please fill out your information below and we will contact you shortly.
SDI Appraisal Mission Statement
Committed to empowering our clients with clarity and direction.
Stephen D. Ihrig II, SRA is principal of SDI Appraisal, specializing in the valuation of residential real estate. Steve has been providing appraisal and consulting services since 2003. Currently a Certified Residential Appraiser in the State of Florida, Steve was awarded the SRA designation from the Appraisal Institute.
In today’s ever-changing real estate market, utilize only the best and most qualified individuals to perform your residential appraisals. An accurate value supported by data and analysis, that reflects market trends, can hold up in any court of law, is considered a high-quality report by any lender’s underwriting system, and meets all USPAP (Uniform Standards of Professional Appraisal Practice) standards should be your primary objective when retaining a real estate appraiser.
Specialized Professional Education and Development
- SRA Designation, Appraisal Institute
- Private Appraisal Assignments: Attorneys, Accountants, Property Owners, Trusts & other entities
- Expert Witness Testimony
- Real Estate Finance Statistics and Valuation Modeling
- Relocation Appraisal
- REO Appraisal: Appraisal of Residential Property Foreclosure
- FHA & USDA Approved Appraiser
- Uniform Standards of Professional Appraisal Practice (USPAP)
- Michigan State University Alumni
20+ Years of Experience
EXCELLENT Based on 18 reviews Martha Bennington2024-09-12Trustindex verifies that the original source of the review is Google. SDI was amazing working with in a very short time frame. Very thorough communication, perfect assessment and very easy to work with, highly recommend if you need an appraisor. Ashley Miller2024-09-12Trustindex verifies that the original source of the review is Google. Can’t say enough great things. This company is more than willing to work the best they can with buyers and sellers schedules! Very fast and very professional! Highly recommend! Guillermo Martinez2024-04-12Trustindex verifies that the original source of the review is Google. I had a great experience with SDI appraisals! Steve was very personable and he took the time to answer all of my questions. I appreciate how quick he was able to produce a report for me. I’ll be sure to use him again! C C2024-02-19Trustindex verifies that the original source of the review is Google. Stephen Ihrig has been honest, diligent, communicative, and detailed in his work for me. He went above and beyond communicating with me about his services while I am in the final stages of my divorce, when the majority of our marital assets are the real estate he appraised for me. I can’t wait to have him be my expert witness for my day in Florida court. Well earned reasonable fee. 100% confidence in SDI and Stephen. I have high standards for quality and I highly recommend!! Rhonda2023-12-15Trustindex verifies that the original source of the review is Google. Steve is an awesome appraiser! He is very knowledgeable and goes above and beyond to help with all my appraisal related questions when needed. Derek Golden LLC2023-06-07Trustindex verifies that the original source of the review is Google. I recently had the pleasure of working with Stephen and SDI Appraisal and I must say I was thoroughly impressed by their professionalism and expertise. From the moment I first made contact, I felt reassured that I was in good hands. Stephen was punctual, respectful, and showed an incredible depth of knowledge about the housing market and appraisal process. He took the time to explain the entire procedure in detail, ensuring we were well-informed and comfortable every step of the way. The appraisal report itself was delivered promptly and was comprehensive, yet easy to understand. It provided valuable insights into my property's value and how it compares to others in my neighborhood. I was also impressed by the inclusion of clear, high-quality photos and detailed explanations for each valuation point. This experience has made me appreciate the value of a skilled, professional appraiser. I highly recommend Stephen and SDI Appraisal to anyone in need of a thorough and accurate home appraisal. Debra Caponnetto2023-04-01Trustindex verifies that the original source of the review is Google. Steve was extremely informative and professional. He did some background research without charge and recomnended that I seek someone more local based on tge purpose for my appraisal and was kind enough to provide 3 additional referrals. Couldn’t have asked for anything more from a cold call. Thanks again for all your help Steve! Glenn Mccoy2022-11-07Trustindex verifies that the original source of the review is Google. Steve completed an appraisal for a home equity line of credit we were seeking. I soon discovered he is a very dedicated professional; thorough, extremely knowledgable, and his analytical mind is impressive. I own a real estate brokerage, and rarely do I find an appraiser that has such a command of the nuances of my market - Steve certainly did. Thank you! Renee Gray-Wyall2020-10-04Trustindex verifies that the original source of the review is Google. We just received our appraisal from Stephen and could not be more pleased with his outstanding , professional and time sensitive service and expertise . The appraisal report is very thorough with 7 comparable sales and explanation for adjustments, beautiful pictures and professional presentation. We called a total of 3 appraisers in one day , Stephen was the only one that got back with us , we are so glad he did we feel blessed that we were able to snag such an experienced appraiser . Christina Pitchford2020-09-24Trustindex verifies that the original source of the review is Google. Steve was very easy to work with to schedule the appraisal as quickly as possible--and then very quick to return the detailed report! Much appreciated!