Posted By: compliance101
Low Value Buildings - 05/04/22 08:08 PM
We are looking for guidance to determine the insurable value on a extremely deteriorated residential building (still has 2 walls and roof) . The appraiser will not provide a cost approach and labels it as a tear down due to its current condition. The borrower states they will tear it down and the appraiser provides a demolition cost but it seems from Q&A #9 demolition cost can only be used for farming, ranching or industrial purposes. The insurance agent has not been helpful and just wants to use the sale price. Any guidance for determining a value would be appreciated!