Appraisal Bias

[glenn walker]

Wasn't the lawsuit about racial discrimination? Where was the proof of that?

The Presidential "task Force" is using that case as proof of discrimination because the White Appraisers value was too low. Thats all they needed to justify their actions . It could have been $1 dollar or $100,000 it was low because the owners were black. Case Closed

 

[shrubberyvaluation]

You mean for those properties that were not personally inspected by the appraisers? I think you know the answer to that. The missing piece of the data that the AVMs use is limited to the subject property data, not the appraiser's valuation.

I may have mentioned this before but when my parents got an AVM for a refi some of the properties were on the other side of a major road in a different market area, one was less than 2/3rd the GLA of their house in that other market area, and they skipped over properties 3-4 months ago in the same community similar in design for sales that settled 1 month ago in different areas, different designs, and different sizes.

 

[glenn walker]

The second appraisal reported an estimated value of their house at $1,482,500, nearly a half-million more than the first. The Austins have settled with Miller and Pedrotti for an undisclosed amount of money, with additional terms. First, the company agrees not to discriminate in the future, FHANC said. The company also agreed to watch a documentary about housing discrimination and attend a training session about the history of segregation and real estate discrimination in Marin County.

 

[George Hatch]

I may have mentioned this before but when my parents got an AVM for a refi some of the properties were on the other side of a major road in a different market area, one was less than 2/3rd the GLA of their house in that other market area, and they skipped over properties 3-4 months ago in the same community similar in design for sales that settled 1 month ago in different areas, different designs, and different sizes.

I believe you, but what you're referring to is a weakness in the database. A GIGO issue that can result just as easily with an appraiser if they don't have access to all the relevant data.

 

[shrubberyvaluation]

The Presidential "task Force" is using that case as proof of discrimination because the White Appraisers value was too low. Thats all they needed to justify their actions . It could have been $1 dollar or $100,000 it was low because the owners were black. Case Closed

I have heard the homeowners speak in that case, you can tell they are full of crap and acting like they are ignorant of the real estate market. I'm sure they have been coached really well on what to say.

 

[Fernando]

You mean for those properties that were not personally inspected by the appraisers? I think you know the answer to that. The missing piece of the data that the AVMs use is limited to the subject property data, not the appraiser's valuation.

When you look at the comps back then and even now, the sold prices vary significantly. You can argue one way for higher value or lower value using AVM models. Only an appraiser familiar with the areas can adjust the comps appropriately to come to a reasonable value for subject.

 

[Fernando]

I have heard the homeowners speak in that case, you can tell they are full of crap and acting like they are ignorant of the real estate market. I'm sure they have been coached really well on what to say.

As an appraiser, the report should speak for itself with appropriate comps and comments. Be like Nando and give everything you got including crap to make your case.

 

[glenn walker]

Imagine today how any potential jury pool is biased against appraisers . When a President and VP and 14 Federal Goverment Agencies say 97% of appraisers are white and many say suffer from systemic racism so its impossible to get a fair trial.

My guess is E & O Companies will have to revise policies and ether eliminate defense or make it a very small $$ dollar amount, like they have already done on defense against State Board Actions as most are now only $5K to $10K and then your on your own. ( few appraisers even know this or read their policy )

 

[George Hatch]

When you look at the comps back then and even now, the sold prices vary significantly. You can argue one way for higher value or lower value using AVM models. Only an appraiser familiar with the areas can adjust the comps appropriately to come to a reasonable value for subject.

The last time I looked that neighborhood has STILL not yielded a sale that would come anywhere near supporting the $1.48M in the 2nd appraisal that was performed in mid-2020.

Isn't that wierd?

 

[shrubberyvaluation]

The last time I looked that neighborhood has STILL not yielded a sale that would come anywhere near supporting the $1.48M in the 2nd appraisal that was performed in mid-2020.

Isn't that wierd?

Must be due to appraisers.