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

[Fernando]

When I was younger I gave less value to a house because the remodeled kitchen wasn't done with permits. Owner got upset. It was my bad because market was willing to accept kitchen remodels or bathrooms remodeled without permits if done well.
However, a recent major renovation or addition do require permits to be finalized in my book to give more value. Each house is different for appraiser to determine how market perceives what was done with or without permits.

 

[RCA]

A qualified residential appraiser, or if you insist "appraser team" should:

1. Know all about local construction, including licensing and permits, as it relates to value.
2. Understand local geology and climate as it pertains to value, to cover all hazards known to exist in the area such as flooding, tsunamis, hurricanes, landslides and earthquakes.
3. Know how to make precise measurements, floorplans and site maps.
4. Know how to do accurate and descriptive product, construction and land photography, including the use of aerial drones for aerial photos.
5. Know local planning regulations and zoning as it impacts value. In particular, know how to get important value-related information from online databases or office data.
6. Know how to use computers, including statistitical programming with R.
7. And so on ......
8. Know how to integrate everything into an organized and descriptive report.
9. Take care to organize and archive all information after a project is completed.
... and so on ...

 

[RCA]

You see, in the end, everyone expects the appraiser to be fully knowledgeable with respect to valuation - at least to the extent that valuation accuracy is "reasonable" - yet organizations, such as TAF and the AI, really take rather little responsibility for education and credentialing on these issues, nor is anyone paying appraisers for the time they need to become proficient or do a satisfactory job on assignments. The system does not care - as long as the appraiser and they themselves can get away with anything less. As with every profession, it is a grey area.

You can complain about how imperfect it is, as much as you want, but the system of Lenders, Banks, Agents, Enforcement, Homeowners, etc., is large, almost immoveable, and in any case laden with so much inertia, that trying to force change is an excruciatingly painful and prohibitively expensive experience.

In the end, it is up to appraisers to set their own standards, their own fees - and just make sure every other appraiser who gets in their way is clobbered as much as possible.

Be ruthless.
Be relentless.
Be hostile.
Kill or be killed.
It works both ways of course.

The whole troop on the Miller Case was completely incompetent and undeserving of any kind of sympathy. That is my take. It was a big Cluster****.

 

[J Grant]

I doubt the descriptive phraseology really mattered. I never say a valuation comes in low or lowballing, won't stop others from using the terms, especially in the RE industry. It is a non issue in my opinion unless its something truly egregious and not some code language that only the person getting the valuation lower than what they need can understand.

You dont' say it and I avoid saying it, but other appraisers say it and it puts the wrong idea in the minds of the public.

Just look at the horrendous title of this thread!!! (I asked if they could change it and they said they tried but could not do it.)
Home value below the REAL PRICE ?????

 

[Sadie]

You dont' say it and I avoid saying it, but other appraisers say it and it puts the wrong idea in the minds of the public.

Just look at the horrendous title of this thread!!! (I asked if they could change it and they said they tried but could not do it.)
Home value below the REAL PRICE ?????

Agree, real price is not a thing but could probably be best described as sales price. And since the last sales price was $550k, shouldn't it be $450k above sales price?

 

[ucbruin]

I doubt the descriptive phraseology really mattered. I never say a valuation comes in low or lowballing, won't stop others from using the terms, especially in the RE industry. It is a non issue in my opinion unless its something truly egregious and not some code language that only the person getting the valuation lower than what they need can understand.

If you're referring to the Miller case....
Phraseology was highlighted in the article that I read on the AF....

 

[J Grant]

Agree, real price is not a thing but could probably be best described as sales price. And since the last sales price was $550k, shouldn't it be $450k above sales price?

Lol wtf knows, comparing a current value to a long past sales price would just make things worse lol

Whenever it happens that my opinion of market value is higher or lower than the SC price, I always say the SC price was higher or lower than my opinion of market value rather than saying my opinion of market value was lower or higher than the SC price...

 

[ucbruin]

 

[shrubberyvaluation]

You dont' say it and I avoid saying it, but other appraisers say it and it puts the wrong idea in the minds of the public.

Just look at the horrendous title of this thread!!! (I asked if they could change it and they said they tried but could not do it.)
Home value below the REAL PRICE ?????

Oh I agree, its an awful thread title. I thought it was the title of the article when I first saw it...but its not. Of course there is this terminology claiming the higher valuation is the right valuation in the article with no thought to it.

• They got a white friend to pose as the owner and the house was valued correctly

Most people want to see a higher valuation when they pay for an appraisal for a home loan and that bias gets inserted into articles as if the higher valuation that allowed the borrower to get the loan must be correct.

 

[Tiffany Gibbons]

Oh I agree, its an awful thread title. I thought it was the title of the article when I first saw it...but its not. Of course there is this terminology claiming the higher valuation is the right valuation in the article with no thought to it.

• They got a white friend to pose as the owner and the house was valued correctly

Most people want to see a higher valuation when they pay for an appraisal for a home loan and that bias gets inserted into articles as if the higher valuation that allowed the borrower to get the loan must be correct.

So, hypothetically, what happens if the house burns down, no homeowner needed to meet the appraiser, replacement or reproduction cost "telephone pole construction still in use today?" and land value, taking geological soil conditions, earthquake risk, etc. to be re-built to current code, not grandfathered in" with old restrictions. How would the insurance company value it, just to take away any and all inherent "racism"? Any Highest & Best Use issues with the current zoning? Just curious what everyone familiar with the market would think. And would any appraiser or wannabe propery data collector accept a new assignment on this property? Ever?