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Cerro Grande Fire Assistance Act
Policy on the Decline of Residential Real Property Values

Pre-Fire Appraisal Overview by Katherine Guidry

Appraisal Critera for Pre-Fire Value

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Office of Cerro Grande Fire Claims

Post Office Box 1480
Los Alamos, New Mexico 87544

APPRAISAL CRITERIA FOR PRE-FIRE VALUE

Pursuant to §295.31(a) of the Final Rule, "FEMA wild reimburse Claimants for the reasonable costs they incur in providing appraisals ...[as] requested by the OCGFC."

__________________________ , Claimant has requested compensation for Cerro Grande Fire Related Losses under the Cerro Grande Fire Assistance Act.

__________________________ , Office of Cerro Grande Fire claims Reviewer for said Claimant, has determined that it is necessary, to obtain a pre-fire-appraisal for the property located at in order to accurately assess Claimants losses.

____________________________________

In accordance with the Final Rule, reasonable costs will be reimbursed. io the claimant, provided that the pre-fire appraisal conducted for said property meets the criteria and includes the following:

Uniform Residential Appraisal Report (URAR), dated Pre-Fire, estimating the value of the property as of May 3. ?boo, Prepared by a New Mexico Licensed Residential Real Estate Appraiser.

1, Appraisal report must include the following, in addition to the information on the URAR: Subject:

  • Dwelling sketch addendum with calculations
  • Plat Map wirh lot dimensions or Certificate of Survey
  • Subject property photographs; front, rear and street view
  • Flood map

2. Emphasis should be put on the market comparison approach to value, but include the cost approach in order to support the market approach. Value placed on the site should be supported by recent land sales, where possible. Income approach should only be used for residential income properties.


3. Market Comparison Approach

  • Minimum of three properties sold prior to the fire within a one-year period
  • Photo of all three properties
  • Map designating location to the subject
  • Comments of adjustments made

4. Condition of the Appraisal: mention any limiting conditions, If an ulterior inspection was not made of the subject, explain why and where all information was obtained, i.e., county records, previous appraisal, interview with former owners.

5. Appraisers Certification

 

INFORMATION FROM THE SALE OF PROPERTY

1. Copy of the Sales Contract

  • Terms of the sale (any concessions made by the buyers or Sellers?)
  • -Any exceptions that will help support an "arms-length transaction."

2. HUD Settlement statement

3. History of the marketing of the property

  • Was it listed with a real estate broker?
  • How was the listing price determined?
  • What advertising was done on the property? (MLS, newspaper ads, open houses)
  • History of any offers made.

All of the above-mentioned will help document the fact that the sellers did their best to get the highest market value for their property.

COMPENSATION RECEIVED FROM CERRO GRANDE FIRE ASSISTANCE ACT AND INSURANCE COMPANY

Itemize all Fire-related repairs made to the subject property (prior to the sale) from monies received from CGFAA and/or insurance for firs damages that could affect the sale (claims reviewer will attach a description of Firo-related losses).

__________________________       ____________
Claims Reviewer's Printed Name      Phone Number

__________________________       ____________
Claims Reviewer's Signature             Date

__________________________
Claimant

__________________________

__________________________
Location of Property to be appraised

 

ORDER APPRAISAL

 

Palo Verde Appraisals, Inc.
Katherine Guidry, President
P.O. Box 4730, Los Alamos, NM 87544
Office: (505) 662-3777 Fax: (505) 662-3777
Email: PaloVerdeApp@aol.com

http://www.PaloVerdeAppraisals.com

Copyright © 2005 Palo Verde Appraisals