Black couple settle lawsuit as home value at $500k below real price

[Fernando]

What is Bert ranting about? He overthinks things.
There's a property I'm thinking of buying. It was originally listed for $620 last year then reduced to $600 and now $580K. That's the market.
It last sold for $540K five years ago. Owner won't sell below $540K. Maybe I can get it at $550K. No need for regression analysis.

 

[Zoe]

You would need a good handle on land as if vacant in the different areas. I can only imagine what some vacant lots sell for California and I am sure they vary very much in location. You might even have to extract land value if there are no vacant lot sales. Idk how old the houses are but you could go back in time if lots sold arm's length when the houses were built and the houses are similar in age. Just doing historical improved sales over say the last two years or 3 years between the different subdivsions would be a good indicator of location differences and try to keep the parameters as similar as possible in the search criteria between the subdivisions.

 

[Zoe]

Another thing you might could do is look at allocation rates between the different areas on the differences in land value. If you went back and had good site sales and then the sales price of the comparable and the subject after the house was built, allocation would help look at location differences also. GH has already mentioned there is a difference in the competing areas. I don't doubt that at all. One street can make a huge difference in Memphis area. Like one area on one side of the street sales higher than the area on the other side of the street. Very segmented markets in Memphis.

Race has nothing to do with it. Income does. You will find different races in each segment of the market in all of Shelby County, which is local county.

 

[Zoe]

I am thinking diverse or mixed or varied is my new word for heterogeneous in relationship to the subject's competing area. What is best term for very homogeneous subdivision? I am thinking uniform or similar would be a good term.

 

[Zoe]

I can picture very large developments in California where the design and quality of construction are very uniform and similar in the elements of comparison. I have never been there. I know it is expensive to live there.

 

[Zoe]

I have found this to be true in Shelby County in many cases. The ratio of the site value as if vacant compared to the sales price after improved remains pretty constant regardless of location. It will vary some in percentage points, but not a ton. Rural is whole different ballgame. Single family only. I mean in a subdivision where the properties are very similar in design and appeal. Waterfronts and all that can come into play along with external influences like being located next to negative influence on the subject property.

 

[chad hampton]

In a perfect world, our legal system would have a major overhaul. I would bet a years worth of mortgage payments at the first appraisal. What is the more accurate one? But in the clown world we live in, being woke, is all that matters. At least for the time being, so I hope the clowns enjoy it while it last, cause change is coming.

 

[ucbruin]

In a perfect world, our legal system would have a major overhaul. I would bet a years worth of mortgage payments at the first appraisal. What is the more accurate one? But in the clown world we live in, being woke, is all that matters. At least for the time being, so I hope the clowns enjoy it while it last, cause change is coming.

I have to play the devil's advocate here....
While no one likes being gamed....
When you think about it, for a couple of hundred years the pendulum swung only in 1 direction....
Since the '70s and moreso since the start of the 21st century....
The direction of the pendulum has slowly changed diection....
It's no wonder those that benefitted for 2 centuries are angry....
Even though it's only been about 50 years....

 

[chad hampton]

What do you mean? Who’s been around for 2 centuries?

 

[ucbruin]

Think about the topic as well what you posted....