Black Homeowners Face Discrimination in Appraisals

[Meandering]

June 25th, 2020

Infections surging
travel bans in effect
three states (Arizona, Florida, and Texas) that health expert worries ..................

Coronavirus is so bad in 3 states, they might have to return to lockdown

Coronavirus US cases are on the rise again — surging in some states to the point that at least one expert thinks they might need …

bgr.com

8/24/2020

Florida's COVID-19 cases continue to fall
https://www.news4jax.com/news/florida/2020/08/24/floridas-covid-19-cases-continue-to-fall/
Hospitalizations due to COVID-19 have also been declining. Late Sunday morning, 4,578 patients were being treated for the disease in Florida hospitals compared to Saturday's 4,773.


Yup
it's all about the pictures on the wall
because the market is "open and competitive"
there is no such thing as panic buying,
or potential market segments being kept out due to travel bans, lockdowns, greater susceptibility to virus, loss of ability to mortgage due to forbearance at current home. Yup it's only the income of the buyers and sellers that matter, all is just "typical".

 

[George Hatch]

WRT the Florida property and the tale of 2 appraisals.....

I'm not local to that market and I don't have access to the local MLS, but I did thumb through that property's prior listing and sale ($310k) in 2017 as well as the reasonably similar properties which have sold within the prior 12 months. I probably didn't see all there is to see, but I did saw more than enough sales to power an appraisal. I've developed many appraisals over the years with far fewer recent sales data.

So in considering the situation of an appraisal of a property that previously sold via the local MLS in 2017 for $310k, a 2020 value conclusion of $330k might not be a problem at all, but it would definitely bear explanation and that explanation had better make a lot of sense. Not to mention the unadjusted pricing of other older homes in that area, which for the listings depicting average or better condition seem to *start* at $350k and up for the homes on the smallest lots.

A $465k value conclusion may/may not make a lot of sense for that property, either. But at least there are sales of older homes of comparable sizes in that area for which the sales prices exceeded that on the upper end. And if the property being appraised had been improved over the last 3 years that might have been of effect on what could be called reasonable in 2020.

Or not.

 

[J Grant]

WRT the Florida property and the tale of 2 appraisals.....

I'm not local to that market and I don't have access to the local MLS, but I did thumb through that property's prior listing and sale ($310k) in 2017 as well as the reasonably similar properties which have sold within the prior 12 months. I probably didn't see all there is to see, but I did saw more than enough sales to power an appraisal. I've developed many appraisals over the years with far fewer recent sales data.

So in considering the situation of an appraisal of a property that previously sold via the local MLS in 2017 for $310k, a 2020 value conclusion of $330k might not be a problem at all, but it would definitely bear explanation and that explanation had better make a lot of sense. Not to mention the unadjusted pricing of other older homes in that area, which for the listings depicting average or better condition seem to *start* at $350k and up for the homes on the smallest lots.

A $465k value conclusion may/may not make a lot of sense for that property, either. But at least there are sales of older homes of comparable sizes in that area for which the sales prices exceeded that on the upper end. And if the property being appraised had been improved over the last 3 years that might have been of effect on what could be called reasonable in 2020.

Or not.

Clearly, one of those apprasials , if one is right, then the other is "wrong " ( not credible ) - unless BOTH of them are bad, because idk, perhaps the best supported value is 385k or 410k?

I am in a different geo area in Florida, but some areas I work in have very big price differences among similar size houses, esp in an older house area, depending on upgrades, size, quality, amenities. And not racially related at all, but some close proximity subdivisions can be very different niche/sub market from the other as well. - and some have country club fees or age restrictions or other factors that greatly impact value. I've gotten the most ridiculous CU "comps " from fannie of sales under a mile - a mile or less means nothing in some areas here , what is a good comp can change within a few streets.
We don't know if subject is original/dated or if it is upgraded, or remodeled - nor do we know the the specific comps used in either report ..assumptions are based on speculation.

 

[DTB]

What does one blame it on when it's a white couple and a white appraiser? Self loathing?

 

[ZZGAMAZZ]

WRT the Florida property and the tale of 2 appraisals.....

I'm not local to that market and I don't have access to the local MLS, but I did thumb through that property's prior listing and sale ($310k) in 2017 as well as the reasonably similar properties which have sold within the prior 12 months. I probably didn't see all there is to see, but I did saw more than enough sales to power an appraisal. I've developed many appraisals over the years with far fewer recent sales data.

So in considering the situation of an appraisal of a property that previously sold via the local MLS in 2017 for $310k, a 2020 value conclusion of $330k might not be a problem at all, but it would definitely bear explanation and that explanation had better make a lot of sense. Not to mention the unadjusted pricing of other older homes in that area, which for the listings depicting average or better condition seem to *start* at $350k and up for the homes on the smallest lots.

A $465k value conclusion may/may not make a lot of sense for that property, either. But at least there are sales of older homes of comparable sizes in that area for which the sales prices exceeded that on the upper end. And if the property being appraised had been improved over the last 3 years that might have been of effect on what could be called reasonable in 2020.

Or not.

------------------

Clearly, one of those apprasials , if one is right, then the other is "wrong " ( not credible ) - unless BOTH of them are bad, because idk, perhaps the best supported value is 385k or 410k?

I am in a different geo area in Florida, but some areas I work in have very big price differences among similar size houses, esp in an older house area, depending on upgrades, size, quality, amenities. And not racially related at all, but some close proximity subdivisions can be very different niche/sub market from the other as well. - and some have country club fees or age restrictions or other factors that greatly impact value. I've gotten the most ridiculous CU "comps " from fannie of sales under a mile - a mile or less means nothing in some areas here , what is a good comp can change within a few streets.
We don't know if subject is original/dated or if it is upgraded, or remodeled - nor do we know the the specific comps used in either report ..assumptions are based on speculation.

--------------------
The salient factor about this thread is that lots of smart appraisers--despite that none admittedly are aware of the underlying facts or factors--agree that it's virtually impossible to determine which of the two appraisals, if either, is accurate. That having been said, how the H could a so-called journalist have determined the rationale for the difference between the two???? Nothing more can be said.