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

[Dublin ohio]

And would any appraiser or wannabe propery data collector accept a new assignment on this property? Ever?

You also have to wonder what impact it had on appraisals in the neighborhood after the case went public.

 

[shrubberyvaluation]

You also have to wonder what impact it had on appraisals in the neighborhood after the case went public.

I doubt it got enough attention to have any impact, but I could be wrong.

 

[ZZGAMAZZ]

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?

Hmmmm. Can you possibly explain (briefly if possible so I understand) how an insurer would value the accidental destruction of a renovation-in-progress?

 

[Zoe]

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?

I am telling you regulators are going to come down hard on AMCs and gses. No doubt in my mind. No way in hell I would do that appraisal with property data collector.

That appraiser is in deep doo doo. No way it would have went before the major regulators if the original appraiser and possibly GSE and AMC are not in trouble.

 

[Carnivore]

This is not on topic but related. This is very disheartening to me to see these numbers: Something is failing at the federal Level.

NAR published this data recently

"While the U.S. homeownership rate increased to 65.5% in 2021, the rate among Black Americans lags significantly (44%), has only increased 0.4% in the last 10 years and is nearly 29 percentage points less than White Americans (72.7%), representing the largest Black-White homeownership rate gap in a decade."

 

[Tiffany Gibbons]

Hmmmm. Can you possibly explain (briefly if possible so I understand) how an insurer would value the accidental destruction of a renovation-in-progress?

Well insurance cost approach is based on current replacement costs, not reproduction of a telephone pole house. I'm sure there would be different code requirements now, this construction was grandfathered in. If it was accidentally destroyed, they do a percentage of replacement cost to build a new improvement. And the insurance company would send out an insurance adjuster, not an AVM, that's all I meant.

 

[Zoe]

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****.

I'll say it again. The homeowner did not understand the appraisal in CA. They were minority and highly educated. That was a problem Houston. I will say it again. Me and homeowner would have got along fine and I would have made sure homeowners understood what I needed from them to complete the assignment. I would have informed them I may have to call them back for additional information because this is a complex assignment. I would have explained why the assignment was complex.

That is exactly where things fell apart is homeowner not understanding the appraisal report. Just wait til GSEs and AMCs start dealing with it soon.

 

[ucbruin]

You also have to wonder what impact it had on appraisals in the neighborhood after the case went public.

I doubt it got enough attention to have any impact, but I could be wrong.

I was thinking the same thing when I read Dub's post....

How many folks are even aware of appraisers, let alone the topic....

 

[Zoe]

I was thinking the same thing when I read Dub's post....

How many folks are even aware of appraisers, let alone the topic....

It probably made the local news station there. The homeowners probably made sure it did. One appraiser came out like a shining star. One appraiser not so well. Wonder if AMC was involved.

 

[Zoe]

Here is my take too. Views are very important to many homebuyers. Some homes within a particular subdivision don't really even compare to other homes in the subdivision just because of difference in view.

That does not take into account any other consideration like upgrades or anything else. Views only give a real high premium to some homes.

Take waterfront properties. From a residential standpoint, properties on waterfront have increased in value more than any other properties in the residential arena.