Maryland Commission versus Appraiser Bias

[Elliott]

Just as an aside. I was chastised by a GSE by letter citing reports where I had said there has 'good homogeneity.' I was warned UW with a bias could use such descriptions as code words. They recommend it was more appropriate to say something like, the neighborhood has a new community swimming pool. Now I can't think of any appraisal I've done in the last 20-years where I could say, the community has a new swimming pool. What do I say about the community that has pot holes that extend the full width of the gravel roads? "The community's roads with the addition of rainfall are level"?

By all means, those appraisers with 30-years of career in front of them, tell us what you are going to do.

 

[djd09]

oh they released these appraisals, so the public can see

they do know america has a civil court system

 

[shrubberyvaluation]

AK,
So with all due respect, what is your solution? So you get an order to do an appraisal in a neighborhood, do you find comparables in that neighborhood that are similar or do you use comparables in the better neighborhoods near by?

Go to the neighborhoods where homes sell higher, you won't get charged with racial bias then! People try to find avenues when their home doesn't appraise to get their loan. If they can't attack the comps they have to go another avenue....racial bias.

If an appraiser is using "comps" that are like 20 miles away to get an inferior neighborhood to stick it to the minority homeowner/borrower he will probably get slammed for the credibility of the report. I don't think that is what is happening with most of these claims of racial bias, I think it is done when they can't attack the credibility of the report in many cases.

 

[Overimprovement]

I said many times right in this thread that I don't think the issue racial bias.

Then why do you make the comment, and I quote: "If it is not racial bias then what could be causing the big differences between appraisals?"

That's a fairly large disparity in statements...

 

[Overimprovement]

With all due respect, I think the best thing you guys can do is sit down and shut the **** up.

So, just roll over and play dead huh? Does that apply to an individual appraiser who has a bias claim raised against one of their reports? Just let the state do whatever they want. Let the media make all the false claims without speaking out against it.

I'm sorry people like you don't seem to realize that this industry is under attack. If you want to be passive, that's your choice. Some of us actually like our profession, and would like to keep doing appraisals.

It's funny you seem to imply that the short-timers are the problem, and raising the biggest ruckus here. To me, someone retiring in 3-5 years has much less skin in this than someone who still thinks they will be appraising in 30 years. If the appraisal industry as we know it ceases in 5 years, who is hurt most? The 65 year old appraiser, or you?

 

[CGinMN]

By all means, those appraisers with 30-years of career in front of them, tell us what you are going to do.

I'm going to continue to up my game every year, and learn more so that readers find my analysis not only credible but bulletproof. For those that don't, I will try to find better ways to communicate. For those that still don't, at that point, they're not trying. So they can take me to court I guess. I just kinda doubt that will happen when I know there is weaker prey.

Then why do you make the comment, and I quote: "If it is not racial bias then what could be causing the big differences between appraisals?"

What I think he's saying is, "ok fine, even if it's not racial bias, appraisers have a credibility problem when the spread between 2 valuations is $500k."

 

[Overimprovement]

What I think he's saying is, "ok fine, even if it's not racial bias, appraisers have a credibility problem when the spread between 2 valuations is $500k."

I think there are only 3 possibilities, if that was the intent of the statement:

1. There truly was bias in one or both appraisals (lets not discount the fact that even if there is, its not an automatic that the low one was negative bias. It could well be the 2nd that was positive bias.)
2. Intentional deception by one or both parties.
3. Flat out incompetence, again on one or both parties.

There are avenues for correction, teaching, and punishment for all three of these. Lets get some good hardnose investigation by competent people and try to determine which it is. I have nothing against cases like this being looked into, in fact it is necessary. But this country has gone dangerously far down the path of guilty til proven innocent--and that upon threats of retaliation and retribution if the verdict is not guilty. The appraisers that are subject to this media reporting frenzy likely will have their appraiser careers ended, though that is speculation on my part.

 

[DTB]

I am one of the old guys that sat down, shut up and left the business over less B.S. than this. But this racial bias stuff is B.S.
Am I biased? Yes over hundreds of things. Were my appraisals biased toward a certain result? Nope, nada, never. Why would I, what's to gain?

Though I am out of the biz, I still know values in my market and the play for this BS moment is to get me a couple of properties in black areas, rent them for a few years until all the appraisers are woke, so I can sell them at those nice high prices. I don't have the sway Rev. All does, but I gots to get my piece too.

 

[Terrel L. Shields]

That is not an acceptable response.

So lying is? Be my guest

 

[Terrel L. Shields]

it is in our own best interest to defend ourselves as best we can, starting with bomb-hardening our own workproduct.

You cannot prove a negative. I cannot prove I am not a racist. But does that make me racist. So what does anyone (regardless age) do? Do you know how to harden your work product 100%, do you refuse to do work involving minorities, do you apply the Sgt. Schultz method (I see nothing) or just what do you do? I have a report that is $200,000 under the contract. I am appraising it for the sale. The appraiser, I found out today, was a former NAIFA instructor and expert of considerable experience..both broker, and as appraiser. I have taken his classes, etc. I trust his work. It isn't the first time I've seen one of his reports. He did the divorce appraisal for one of my assistants. Looking at my comps, it's pretty apparent the contract might even be a mite low, but keeping in mind all my comps are more recent than the comps available to the earlier appraiser. Does the ultimate value depend upon the best supported appraisal? Or just it mean no matter what, no appraiser "knows" the "real" value of a property. It is simply their supported opinion...The contract will prove nothing.