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Insurance Appraisals

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Insurance Appraisal, What is it? An insurance appraisal documents the estimated cost to rebuild improvements to a property after a catastrophic event such as fire, storm or flood. Market value, land value and depreciation which are typically part of a mortgage-based appraisal are not considered. The Replacement Cost New (RCN)  estimate of a properties improvements can be obtained in (3) ways: 1) Your Insurer pays an expert to estimate RCN 2) Your Insurer uses "in house" cost estimating software 3) Property owner pays an expert to estimate RCN Pros & Cons of each method 1) Good IF you get a say in who the contracted "expert" is 2) Good IF Insurer spends adequate time in the RCN estimate 3) Best     IF  you are looking for "peace-of-mind" by knowing that you are not under-or-over insured.  Your insurer will likely prefer this method since they are not liable for you being underinsured under this scenario.  Your Expert Daniel Peele, RZ 887 is a State
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Subdivision & Sellout Property Appraisal Documents Needed PSP , Preliminary Site Plan Approved, at a minimum. This document shows the layout of lots, streets, common areas, retention, etc.  A civil engineering firm will create your plat and submit it to the local planning department for approval.  The first step in the approval process is Preliminary Site Plan (PSP) approval. Purchase Contact Shows price paid for “Blanks”, an industry term used to describe raw land approved for subdivision development. Infrastructure   Cost The cost to construct underground utilities, roads, accel / decel lanes, etc Ratio Analysis as a "Road Map"  Take the average retail price of a finished home, multiply  by 35% and you get the "indicated"  retail  value of each lot.   Ratio analysis give you a "guide" to go by for a quick check of economic feasibility and for "comp selection". Example (Assume) 100 lots in a subdivision with homes that sell for an ave
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  USPAP, What Realtors & Brokers Must Know The Uniform Standards of Professional Appraisal Practice (USPAP) governs the appraisal industry and requires  appraisers to follow it's rules.  Enforcement in Florida is promulgated through the DBPR, the Department of Business and Professional Regulation. Since transactions of real estate usually involve an appraisal , Realtors, Brokers and property owners should have some knowledge of USPAP when dealing with appraisers. Real Estate Appraisers in Florida are licensed as either a " State Certified Residential Real Estate Appraiser" or as  a " State Certified General Real Estate Appraiser". Those with a "Residential" license are restricted to the appraisal of residential property (up to four units) with no dollar value limit.  See Florida Statutes FS 475, Part II. The "General" license has no limitations and allows the appraisal of both residential and commercial properties.   "Client"
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Table shows how to present rental income data to a lender, broker or appraiser.

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  Attached is an example of how to organize and present rental income data to a lender, broker or appraiser in the process of ordering an appraisal or listing a property for sale. In my (35) years of appraising commercial real estate appraisal experience, I have seldom been provided with the required information in a clear and concise format. Please note that rents are without sales tax.  To remove sales tax from a given rent, say a $1,000 / month rent, simply divide the rent by the sales tax, for example, if the sale tax is 7%, dividing by the monthly rent of $1,000 by 1.07 gives you $934.58. This is the monthly rental amount to be shown in the table. The website for  Central Florida Appraisal Consultants  (CFAC) is  https://www.cfappraisal.com/
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Appraisals can help you through the Process of  Buying and Selling Real Estate  jjandw When buying , if property is listed, the appraisal tells you if the listing price is within reason. If not listed, the appraisal enables you to make a market-value-based offer.   Commercial Banks: Keep in mind that banks such as TD Bank, Chase & others will not allow you to use your appraisal.  Banks maintain a list of "approved appraisers".  Banks order the appraisal and are the appraiser's "client'  even though you pay for the appraisal.  The bank owns the appraisal report and has no obligation to give you a copy but typically will if asked. USPAP : Appraisers are bound by the rules of "USPAP" or the Uniform Standards of Professional Appraisal Practice.  A section of USPAP concerns  Confidentiality .  Because of this, the appraiser is not allowed to discuss the appraisal with you, the property owner, since the bank is the "client" as defined by USPA
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