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

[Fernando]

Right? The Austin's are in a 76 minute documentary "Our America: Lowballed".

We can start a GoFundMe and have our own documentary.

What do you think the title should be?

"Under the Bus" The dismantling of the real estate appraisal industry.

Where's Tucker and Fox when you need them?

 

[George Hatch]

It's a difficult assignment to begin with due to the lack of relevant data creating the necessity to go to one or both adjacent areas, both having much stronger pricing. If the original appraisal had any weaknesses - which I suspect there were some - then at trial those are going to be reimagined as ethical violations and not competency violations. Same as has been alleged in the press.

 

[John Hassler]

I think you are making a similar point I made in another thread. In some cases, two appraisal reports, both credible, can diverge by 20-30%. And that wouldn’t mean the “true” market value actually lies in the middle. That means both appraisals are credible and differ by 20-30%. Nobody wants to hear it because everyone either has a bias toward one side, and/or an opinion of their own. But if you pull back and look at all those differing opinions, you see the reality is murky.

Now, in this case I think both appraisers could be wrong, and it’s possible the data indicates a more narrow range of credible values. But I generally agree with what Bert said, you couldn’t have handpicked a better property for a racial bias lawsuit.



Here you go. Two pretty smart appraisers, at odds about the where and how to expand the search for comps. And you’re both right. The Cert 7 on the URAR isn’t always going to be objective fact.

Thanks for posting this.
Most appraisers will never come across in their lifetime an appraisal assignment as complex as this one in Marin City. There is very little good data in the neighborhood (as I have provided) and only bad data in the adjacent areas (as I have shown with the high and low sales in Sausalito). Most any appraisal is going to have areas that can be attacked, not because the appraiser didn't support their adjustments or write enough but because each of those adjustments has such a high tolerance level. You're not fighting over whether the GLA adjustment should be $100 or $150 per sf, which might make a 2% difference in adjusted sales prices. You're arguing over a location adjustment for outside sales that is likely, at minimum, 20% and probably more and therefore has a 20%, or more, effect on the adjusted sales price.
Additionally, based on the 10 years of sales I posted, it's as if the market itself (the buyers and sellers) don't have a firm grasp on what prices should be (the built in noise for the area is just wide). Just in the past year, the "pole" home needing work sold for $50,000 more than the one that was turnkey. Why?
That two appraisers came it at different values in Marin City is no surprise to me although one at $995,000 and another at $1,485,000 is more than I would expect. Given that the market in southern Marin has been as hot or hotter than any other Bay Area neighborhood in the past 3 years, and the two MC sales in the past year were $1,250,000 and $1,300,000, one of those appraisers more than the other may want to revisit the value model they utilized (which is something all of us should do from time to time).

 

[George Hatch]

If appraisers wanted to get militant about this there's nothing stopping us from writing up a demonstration-quality appraisal of our own and making our own case in the media.

 

[ucbruin]

Sounds like a hybrid product....

 

[John Hassler]

It's a difficult assignment to begin with due to the lack of relevant data creating the necessity to go to one or both adjacent areas, both having much stronger pricing. If the original appraisal had any weaknesses - which I suspect there were some - then at trial those are going to be reimagined as ethical violations and not competency violations. Same as has been alleged in the press.

Bingo

 

[shrubberyvaluation]

Thanks for posting this.
Most appraisers will never come across in their lifetime an appraisal assignment as complex as this one in Marin City. There is very little good data in the neighborhood (as I have provided) and only bad data in the adjacent areas (as I have shown with the high and low sales in Sausalito). Most any appraisal is going to have areas that can be attacked, not because the appraiser didn't support their adjustments or write enough but because each of those adjustments has such a high tolerance level. You're not fighting over whether the GLA adjustment should be $100 or $150 per sf, which might make a 2% difference in adjusted sales prices. You're arguing over a location adjustment for outside sales that is likely, at minimum, 20% and probably more and therefore has a 20%, or more, effect on the adjusted sales price.
Additionally, based on the 10 years of sales I posted, it's as if the market itself (the buyers and sellers) don't have a firm grasp on what prices should be (the built in noise for the area is just wide). Just in the past year, the "pole" home needing work sold for $50,000 more than the one that was turnkey. Why?
That two appraisers came it at different values in Marin City is no surprise to me although one at $995,000 and another at $1,485,000 is more than I would expect. Given that the market in southern Marin has been as hot or hotter than any other Bay Area neighborhood in the past 3 years, and the two MC sales in the past year were $1,250,000 and $1,300,000, one of those appraisers more than the other may want to revisit the value model they utilized (which is something all of us should do from time to time).

But this was done in 2020 when prices were probably lower unless that area was different.

 

[John Hassler]

But this was done in 2020 when prices were probably lower unless that area was different.

Correct. I took this to be a well known fact not in need of repeating.

 

[John Hassler]

If appraisers wanted to get militant about this there's nothing stopping us from writing up a demonstration-quality appraisal of our own and making our own case in the media.

PM me when you want to start.

 

[CGinMN]

Write up a demo report for the Baltimore home while you're at it.