Appraiser Bias Education

[Albert2]

You're the first I've heard saying that they learned a lot. What I typically hear is that there's not enough content to fill even the 4-hour course, so it's back to USPAP. If bias is something that needs to be covered in depth, bake it into the 7-hour USPAP refresher.

I was being facetious when I said I learned a lot. It was a seven hour course and it was worthless.

 

[Alsie35]

Doesn't the topic of this thread seem so like yesterday's news?

 

[shrubberyvaluation]

You're the first I've heard saying that they learned a lot. What I typically hear is that there's not enough content to fill even the 4-hour course, so it's back to USPAP. If bias is something that needs to be covered in depth, bake it into the 7-hour USPAP refresher.

Right, but its not for a need of it, but rather a need for the appearance of the need for it. In other words it is to show the states or doing something, rather than a need for something.

 

[shrubberyvaluation]

I recall some documentary in Canada about appraisers being biased. One appraiser asked if the person was the homeowner and the person was offended. Yea I used ask this all the time if I don't know. I don't want to ask questions to a renter that wont know anything in most cases. Guess I better stop it.

 

[ucbruin]

Appraiser bias vs appraiser victimhood....

 

[shrubberyvaluation]

IMO the most prevalent bias is the, how do I keep my clients bias. I'd wager at least 95%+ involves this, as bias when it involves $$$ or making a living is going to be much greater IMO. I don't recall this being discussed in the course. The main reason I think the whole lowballing thing is crazy is because there are not lender clients (at least ones that I know of) that want this.

 

[shrubberyvaluation]

Valuation Bias: The Invisible Fence of Racial Discrimination​

DateOn DemandSponsorAppraisal InstituteLocation
InstructorCraig M. Harrington, SRA, AI-RRSClass Time5 hours
Full Price$100.00
AI Price$85.00

Course Description​

Appraisers are trained to use factual data and apply a methodical process when deriving assignment results. While we might not think about racial bias when valuing properties, it is invisibly embedded within our real estate environment. This is true even when an appraiser believes that all people should be treated equally in real estate transactions. This course is intended to help you see how bias concepts developed over time and why it’s important for appraisers to recognize them.

On Demand | Valuation Bias: The Invisible Fence of Racial Discrimination

www.appraisalinstitute.org

you know charging one group at certain price and another more is the definition of bias...so go ahead and take the class...current enough cuz

The course description making an excuse for why its needed. Its an invisible force everywhere that you just can't avoid when sticking to factual data.

 

[shrubberyvaluation]

Question. How significant was "racial bias" in the 1990s? If significant, why was it basically unnoticed? Clinton unleashed FNMA upon us in 1999 with Clinton pressuring them to do more subprime loans, expanding lending to the weakest and poorest buyers. In fact, bolstered by a rather dubious report championed by Clinton that came out of Boston claiming rampant racism and redlining. That report was badly flawed according to the OCC which issued its own response to the claims. Until then the issue of race seemed to be very limited in the apparent real world and sex and age discrimination were more newsworthy. But as plots shown, the subject of race began ramping up in the 2000s and despite the white population overwhelmingly supporting Obama in 2008, suddenly everything was seen thru a racial biased lens. And it is mostly nonsense by many measures.

No appraiser has anything to gain by discrimination and to create some boogieman like "unconscious racism" is a hoax that is so oft repeated many people believe it even when they cannot define it, cannot describe it, and cannot point to any instance where clearcut discrimination exists due to race. It is simply a political tool widely used in 2016 to try and defeat Trump. And the tactics used by Democrats then were so over the top, it was a factor in 2024 when many people felt that the lawfare waged against Trump was unfair and as a result he was re-elected.

There are unconscious biases but unconscious racism? I doubt it amounts to much. Anchor bias is a big problem for appraisers, and it is often difficult to avoid even when appraisers are aware it can happen. But truthfully, we do have the contract price in the back of our mind. We do have the list price in our mind. We do have the appraised value in our mind. And we cannot ignore the fact we might 'like' or not a style, a location, etc. I personally have a very bad knee. Many days I am on a cane. So, stairs? Not my bag. I just have to maintain my awareness of my dislikes. Just like Fern gives brownie points to EV drivers. And many appraisers will discount a property with trash on the property. And some seek impacts that may or may not exist. Nearby powerlines. Nearby industrial sites. Nearby VRBO (that was a recent query). Or, maybe a mean dog on the premises.

It's sort of like a trailer house with a sign "Keep Out" and a rottweiler tied to the porch means the guy is a drug user...It is our bias and we just need to be aware that it might not be true.

I won't discount a property with trash on the property, but they do tend to be less maintained, especially if its substantial. Of course if there is trash and somehow everything is maintained the trash is meaningless, but its more of a red flag.

The anchor bias comes in when the red flags don't add up to anything but you won't do your due diligence.

 

[shrubberyvaluation]

Appraisal industry ‘needs to be revamped’​

JPMorgan said other potential reforms to the appraisal industry include establishing new “anti-bias training requirements” for appraisers, allowing equal access to valuation data and techniques and creating new national standards for valuation methods.

“It’s an industry that really needs to be revamped, utilizing less judgment and more data,” Mark O’Donovan, CEO of Chase Home Lending, told CNN Business.

Exclusive: JPMorgan is calling for reforms to stop racial bias in housing

JPMorgan Chase is throwing its considerable weight behind efforts to root out racial bias in the appraisal of homes in America. As part of a new bank-wide commitment to fight housing inequality, JPMorgan is for the first time outlining specific legislation that can fight appraisal bias, backing...

theatlantavoice.com

is chase done laundering epstiens money...

A stupid statement by that CEO. The fact of the matter is the less relevant data available the more judgement has to go into it, and vice versa. Of course more data isn't always better. You can throw all market data from the nation together, won't help any for an appraisal.

 

[Terrel L. Shields]

Of course if there is trash and somehow everything is maintained the trash is meaningless, but its more of a red flag.

I know an appraiser who was sanctioned by the state over not discussing the impact of a few abandoned vehicles on a homesite in the country.