Black Homeowners Face Discrimination in Appraisals

[George Hatch]

$330k vs $465k is literally unbelieveable.

 

[Tim The Enchanter]

as i said before i can't wait for someone to review both appraisals and see what the differences are

They must have had totally different comps. One or both of them is way off with that kind of $ diff.

 

[Chandler]

The second appraiser was also possibly privy to the fact that he/she was the second appraiser and that they weren't happy with the original value and felt pressure.

 

[brvanisi]

I agree with George Hatch. Is it common in Florida to have such a large spread across market sales with similar size/style/era homes? The neighborhoods in Utah where I work are very homogeneous (comps not people, although,..I guess the people are kind of homogeneous as well ), so I just don't normally see such a large value gap percentage when looking and similar comps. Maybe Florida is a different kind of monster?

 

[George Hatch]

The property in question was easy enough to find

1951yb home , 2676sf on a double lot (.5 acres). According to the Assessor records they apparently bought it in 07/2017 for a little less than the $330k in the lower appraisal they're complaining about. The pics in Zillow from the listing back then show a mix of flooring and a really average back yard but the condition at the time looks to be real typical. Updated kitchen, remodeled bathrooms, recent paint. Doors and windows. The 2019 assessment is actually a little lower than the 2017 assessment (what's up with that?)

Zillow shows sales from the last 12 months including one that reportedly just closed down the street in 07/2020 for $480k, however I can't find the listing for it (which is meaningless because I don't have access to the local MLS).

Here's a screengrab of what Zillow is showing for sales of properties built prior to 1970, 2250-3000sf in size and within the last 12 months.

 

[Renee Healion]

A discrimination complaint terrifies lenders because it has real consequences. Instead of borrowers fully realizing their power in pursuing the remedies they do have, they say it was their DIY redecorating.

Same lender/ two appraisers. The second after a complaint.

There are two other threads on this topic already on this site. BNMA at least posted a link but it was not the one the OP described. The FL one is a LITE version taken from the NY Times article. It focussed on the local angle, naturally, and it leaves out the most hateful quote.

Here is the permalink to the article from which this one was taken https://nyti.ms/32rtDAJt

Someone from FL posted in the comments section of the NYT several sales prices in the immediate neighborhood. It was an interesting comment. Recall in the video clip, the homeowners contrasted their property value with their neighbor's.

If it is copyrighted hang me but here it is:
"Comparable house sales within 800 feet of Mr. and Ms. Horton's home :
$370,000 on June 27, 2019
$350,000 on February 22, 2019
$365,000 on April 26, 2019
$385,000 on November 15, 2018
$339,00 on October 30, 2018
$360,000 on August 24, 2018
$325,000 on September 25, 2018
I wonder how Appraiser No. 2 came up with $465,000? "

 

[Tim The Enchanter]

I wonder how Appraiser No. 2 came up with $465,000? "

The magic of comp selection. You know, rainbows and Unicorns.

 

[George Hatch]

Go back and look at the screengrab I posted. Those were all sales from the last 12 months (08/2019) and a fairly tight range in sizes - 2,250sf - 3000sf relative to the subejct's 2676sf.

Here's another screengrab of the smaller homes (2000-2250) that i omitted. Those prices are markedly lower.

Plus, this property has a double sized lot, which apparently some of the sales have and some don't.

 

[Renee Healion]

Hard to tell the "minutes from the river" factor from a road map a continent away.
I know! They could have asked an appraiser. Alas, not.

 

[Renee Healion]

Ohhhhh duh

An attorney, she works for Blacknight. Or at least someone with her name in her city who is an attorney.

Description
Founded in 2013, Black Knight Financial Services is a provider of technology, data and analytics services to assist lenders and services in the management of loan life cycles. They are headquartered in Jacksonville, Florida.

So, after all, she knows her way around a lending complaint. That viral FB post about hiding pictures...and Zora Neale Hurston and Toni Morrison coming down off the bookshelves (no, not them, I looove them too). Awww, in the same article wrapped up in the hateful bow at the end.

Got me. I don't usually fall for staging.