50% Rule Appraisal Assignments

Carroll & Carroll specializes in 50 Percent Rule appraisal assignments. Our senior appraiser, Ray Carroll, is available to answer your questions.

50 Percent Rule appraisal assignments are about estimating depreciated building value to assist a local floodplain administrator who, relying on the appraisal, must determine whether the cost of proposed work requiring a permit (repairs or improvements) is less than some specified percentage (usually 50%) of the building value.

This kind of appraisal work is the consequence of your local community’s decision to join the National Flood Insurance Program (NFIP). Injoining, a community (city, county, town, village, or tribal organization) agrees to adopt local flood insurance rate maps (FIRMs), and to enact ordinances that regulate floodplain administration including minimum standards for new construction in the flood plain and for the repair and improvement of nonconforming buildings.

FEMA is the federal agency charged with implementing the federal law, with promulgating regulations, with training floodplain managers, and with ensuring compliance. The Substantial Improvement/Substantial Damage Desk Reference (theDesk Reference), published by FEMA, is a guide to local floodplain administrators.

If you have additional questions, please contact our team of FEMA appraisal specialists by completing our online form or call our office, 239-775-1147, and ask for Ray Carroll.

Detailed assistance for appraisers, floodplain administrators, and other professionals can be found at: www.floodpointusa.com.

FAQs

How do I find out my building value?

There are two methods:

Adjusted Assessment – Your floodplain administrator will ask the local tax assessor for the assessment that applies to the under-roof portion of the building in question. The assessment for the under-roof portion of the building is then adjusted by the local assessment ratio to obtain an approximation of building value.

Independent Appraisal – The private appraiser of your choice estimates the building Actual Cash Value (ACV). ACV is the cost to replicate the existing building, minus depreciation for wear and tear.

Ask your local floodplain administrator for a list. Choose an appraiser who is competent in this very specialized area of appraisal practice, by asking whether they are familiar with The ACV Guidebook, topical articles in industry publications, and with the Local Official ACV Appraisal Checklist.

Keep a current set of building images (inside and out) on file in case there is damage due to windstorm, flood, fire, or other peril. The building is always appraised before the damage occurred.

Choose a professional team of architect, engineer, contractor, and appraiser who are experienced with floodplain regulations.

Don’t start work without a permit, or before the appraisal is made. The building is always appraised before the start of work, or before damage.