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

[Dale Floyd]

I would think typically based on the price range of the homes. It could be a bit different in areas with older homes that are passed down.

I think the point was lost - This thread is about an appraiser accused of racism in the comparable selection of her analysis involving the subject’s neighborhood. That sales were not included that were in “higher” areas if I recall.

It‘s going to be a problem going forward.

 

[ucbruin]

I saw this article and I was very tempted to contact the reporter with a link to this thread (her twitter profile has an email address for tips). Especially the list of every sale in the city with the only sale over $1.5 million for a home that's more than 50% larger. https://appraisersforum.com/forums/...-below-real-price.234898/page-11#post-3264728

However, the chance of a "journalist" changing a story like this to acknowledge that there's more at play than evil racist appraisers is about as close to zero as you can get. There is a narrative and the narrative must be upheld at all costs. Nuance? Truth? Other opinions? Nope, if they don't fit the approved narrative they don't exist.

No one appreciates receiving a ROV....
Especially from a non-intend user....

 

[Zoe]

I think the point was lost - This thread is about an appraiser accused of racism in the comparable selection of her analysis involving the subject’s neighborhood. That sales were not included that were in “higher” areas if I recall.

It‘s going to be a problem going forward.

I agree. I don't know that area. If there were no houses in nearby competing areas, the appraiser would have had to go somewhere else. I can already tell GH knows the area because he mentioned areas like 7 miles away but he indicated they were higher priced areas.

It may point to an overimprovement for the subject property.

 

[Zoe]

7 miles away is nothing for some rural properties. I don't know if the subject is in a densely developed subdivision or in a very low density area. If it is in like a suburb or urban area, it points to an overimprovement for the site.

I am beginning to think it was language in the report that gave the owner the green light. Have to remember lenders are required to give the homeowner a copy of the appraisal. I still have homeowners ask me if they can get a copy of the appraisal. I always tell them your lender is supposed to send you a copy. If they don't, then you'll have to ask them for a copy because I have a confidentiality agreement with your lender. Same applies with FHA and VA. I have a confidentiality agreement with them also if they are my co client with the lender.

Another concern many homeowners have is if their property is way under assessed by the tax assessor. They don't want anybody knowing their property is appraising way higher than the tax assessment. I asssure them that my client, them and me are the only ones that will find out what it appraised for unless you tell them or the lender tells them. Because I am not telling anybody.

OTOH, many homeowners probably are surprised they are over assessed on their property value. Tax assessments usually come in a little low or very low sometimes locally, but not always. Sometimes it is the opposite. I assure them I have nothing to do with their property tax.

 

[Sadie]

Whatever you say....I can only go by articles that are posted. I, like many would like to see both reports even though I'm not geographically competent there. IMO the firm representing Miller under estimated the strength of the narrative....and folded like a tent.

I am very familiar with the law firm. The terms of the settlement aren't even available. How much if any does Miller have to pay? Miller had to approve the settlement, so your statement is actually saying Miller folded like a tent. Miller was the defendant, not the law firm.

 

[RCA]

Removed

 

[RCA]

For some who may be confused by looking at recent listings of the Tate-Austin home, its current state is not what it was in 2020. Here is a Google Earth photo from 2/25/2021:

--- I can't upload the png file!! --- but just go to Google Earth and type in 20 Pacheco St, Sausalito. You will see a one-story home on poles. as 2/25/2021. Anyway - got the jpg to attach below.

This whole thing is very wierd. BuildFax does not have any permits or construction for this address. The current home was very recently updated in a major way. Where did the money come from? I went out and looked at the house in 2020 --- when it was single story on poles. - And they said they had done $400,000 work on it before the 2020 appraisal. Note that the house was purchased in 2016 for $500K. Now if you look on Realtor.com it does look like it is getting up there in value. Zillow currently has it at $1.228M, Realtor.com at $1.068M. At the beginning of 2020 all AVM values were around $880K.

Totally wierd.

 

[RCA]

Read Mary Cummins update on the case:

Mary Cummins, Real Estate Appraiser, Real Estate Appraisal, Los Angeles, California, Mary Cummins.

Mary Cummins is a real estate appraiser in Los Angeles, California. Mary Cummins, Animal Advocates, real estate.

mary--cummins.blogspot.com

"UPDATE: 03/10/23 I was just told in the TMZ interview that the Austins lied. They said the appraiser didn't use comps from their neighborhood but a different neighborhood.The appraiser used comps in their same neighborhood which is what the Austins didn't want. In the lawsuit the Austins stated they lived in a "black" neighborhood with lower home values.They stated they wanted the appraiser to use comps from the "higher priced" "white neighborhood" only. The Austins did not want the appraiser to use comps in their same neighborhood. Then the Austins cited Andre Perry's fake paper as if it were fact. I'll post more later.

Just saw the TMZ short video clip. It's not the full interview. I will only comment below on that short clip linked here.

Tenisha said "appraisers are on notice that if they continue to behave this way that there could be repercussions. Obviously people don't want to be sued."

This sounds like a threat to all appraisers in the US to me, white, black and brown. You will be sued if you appraise a home for market value and according to the law. If you don't give the borrow the value they want, they will sue the hell out of you with the help of deep pocketed private "fair housing" groups. This is undo pressure on appraisers. This is against the law. If any borrower said this or hinted this to an appraiser, the appraiser must notify the AMC, Lender and stop all the work. If the appraiser hears this after they did the work, they must notify and the borrower will be denied any home loan. ..."

 

[George Hatch]

One of the previous accounts of the incident mentioned that the original appraiser included at least one dated sale from the subject neighborhood. But we can all speculate that the only reason for including "dated" was because that was literally all that was available as of 12/2020. ANY appraiser in that time frame would have had to go to either Sausalito or the south end of Mill Valley for comps because they didn't have any recent sales in Marin city to populate an SC grid.

The problem isn't in expanding your geographic search as a result of not have any sales in that area. In such a situation you have to work with whatever you can get your hands on. Where the problem can occur is if you don't adequately adjust for the difference in location.

We've posted the actives and the recent sales as of 2023. You can go into Zillow (or the local MLS is you have access to that area - and search for similar sized homes in Sausalito and Mill Valley to see the differences between the closed sales and the asking price for the listing that's already been on the market since 11/2022. It doesn't take a Sherlock Holmes level of detective work to see that much.

 

[RCA]

Of interest:

https://www.justice.gov/crt/case-document/file/1537426/download

The defendant's attorney wasted a lot of time on nonsense, such as trying to claim that FHA did not apply because the transaction was only a refinance (doesn't make a bit of difference -- and he is supposed to be a real estate attorney ...).

Page 6, Line 20:
“[V]ery little”evidence of discriminatory intent is required “to raise a genuine issue of fact,” and “any indication of discriminatory motive may suffice to raise a question that can only be resolved by a fact-finder.”

So we have Page 7, line 8:
(4) Miller stated in her report that Marin City had a “distinct marketability which differs from the surrounding areas,” which comment plaintiffs describe as “coded in race”

Nonsense.

I would say the central problem here was an extremely poor showing by the defendant's attorney. She had the wrong attorney. But then one could claim few good ones exist in this state. .... They are all mushy liberals. -- And the Insurance Companies are probably just as liberal.

There is no justice for appraisers in California. --- Be careful.

====

This sort of thing is really terribly unjust.