Can someone explain this: an appraiser lowballed their home value by nearly $500,000 less than the amount quoted to a White couple for the same property. I didn't know we quoted values? Maybe its the fee? In the process of selling their home? Was there a sales contract? This reporter needs to do a little homework and take a remedial writing class.
Asm. Holden Takes on Unfair Lowballing When Black Californians Appraise Their Homes
(CBM) – Assemblymember Chris Holden has (D-Pasadena) introduced legislation, Assembly Bill (AB) 948, to address discrimination in the real estate appraisal process in California.
AB 948 proposes requiring the Bureau of California Real Estate Appraisals to gather demographic data on home sales and sellers of real estate property – and, most importantly, from homeowners from protected classes who file complaints about low appraisals.
“Black homeowners in predominantly White neighborhoods are getting their homes appraised for far less than their neighbors,” said Holden. “It’s just another example of how bias, whether explicit or implicit, creates inequity for Black Americans. This is redlining 2.0.”
According to Nationwide, the insurance and financial services company, during the process of buying or selling a house, a home appraisal is supposed to be “an independent, unbiased assessment” of how much a property is worth.
Administered by a licensed or certified professional, an appraisal is “based on equivalent sales in the neighborhood and market” as well as a visual assessment of the condition of the home, Nationwide stated.
Racial discrimination in housing has persisted for decades in California and across the country. There is a large body of evidence that has confirmed systemic bias in mortgage lending for decades now. There is also documentation of redlining, deliberate tactics governments and companies used to prevent potential Black homebuyers from securing home loans or purchasing property in majority White neighborhoods.
Home appraisals are just one of the ways real estate companies have discriminated against African Americans. Racism has also been widespread in the home buying process for Blacks, too, according to numerous studies.
A UC Berkeley study showed that both traditional and online lenders overcharge Black and Brown borrowers for mortgage loans to the tune of $765 million a year compared to equally qualified White borrowers,” reports Greenlining, a public policy and research institute based in Oakland. “Researchers found that banking algorithms still give White borrowers better rates and loans than Black ones.”
If the California Legislature approves AB 948 and the governor signs it into law, the measure would require appraisers to take anti-bias training when renewing their licenses. The bill has been submitted to the Assembly Committee on Business and Professions for review.
Making his case, Holden cites the example of a Black couple in Marin City, just north of San Francisco. In the process of selling their home, an appraiser lowballed their home value by nearly $500,000 less than the amount quoted to a White couple for the same property. Similar incidents have been documented in other parts of California and throughout the Country.
Holden’s legislation in California is aimed at combating just one front of a broader national issue that is pervasive. Bryan Greene, vice president of policy advocacy at the National Association of Realtors, told the Philadelphia Inquirer in January that the ills of home appraisals will open up a window to other aspects of housing discrimination.
oh no not a berkeley study
Do you really think that more explanation and information will make a difference. The people that are pursuing this do not care about the above. They are looking for racism. The more you explain. The more they will parse you words and interpret them to achieve the desired results. I don't deny that many appraisals are deficient in various ways. But that is not truly the problem in this caseAppraisal reports for residential lending for the most part are not transparent enough and does not do enough to provide rationale for opinions and conclusions in the report. It is too much "take my word for it". What we have is not a racism issue, we have general appraisal report and USPAP failure issues.
Do you really think that more explanation and information will make a difference. The people that are pursuing this do not care about the above. They are looking for racism. The more you explain. The more they will parse you words and interpret them to achieve the desired results. I don't deny that many appraisals are deficient in various ways. But that is not truly the problem in this case
https://abc7news.com/black-homeowne...ity-homeownership-anti-black-policy/10362859/This is nothing more than click bait news and it works. It is working so well that we are discussing it!! In other words, it sells!!! Media has to make money some how, and they know what to push to make $$$$$.
1. Why did not the reporter order reviews on both appraisals?
2. Did the reporter confront and interview both appraisers?
3. What did Zillow and Realtor.com say the value was? Was it more inline with the higher or lower appraisal? That would be funny to see.
4. How far apart are Zillow, Redfin, Realtor.com from one another? If they are not all the same, are they racists too?
5. Does these appraisals actually exists?
6. This is way out there for me, but in todays time, I do not trust anyone and question everything. Are there any large corporations/groups behind this?......ones that want to get rid of appraisers for AVMs, Hybrids, etc.? This is the fastest/easiest way to get rid of us. We will never know, but with all that is going on at all levels, it sure looks like it. I admit this is a far out there statement. So it is either click bait news or something else is behind this.
Until all sides are reported and investigated equally, I will question the motives behind the story.
From the links you posted. Looks like the first one was closerhttps://abc7news.com/black-homeowne...ity-homeownership-anti-black-policy/10362859/
So maybe the first appraisal was the wrong one?