More Idiotic Bureaucracy

[Mark K]

They are only allegations, no proof or it would have already been provided.

Neither evidence nor facts are important these days. An allegation is sufficient to put an individual or group on the defensive and force them to prove their innocence.

You ARE GUILTY until you prove yourself innocent..... or until you pay some social warrior group 'that matters' a chunk of change. Then you will be redeemed.

 

[Terrel L. Shields]

They assume the difference is due to racism when really the It's because valuations are opinions and a significant number of appraisers have absolutely no idea what they are doing.

Being different by 20% does not mean one or the other is wrong. In a cookie cutter house you might make that case in the face of overwhelming data. I just finished a large ranch where I could see a huge swing between appraisers, 242 acres, 10 year old house with shop, contract $1.55 million. I had 340 rougher acres with a slightly newer house $1.899 million. 140 acres newer but smaller house, 2 really good barns on 140 acres- $950k. But a late breaking sale 300 days on market, 320 acres and literally across the road with very old house, new shop sold $1.3 million. I could see most any value from $1.3 - 1.6, but I weighted that recent proximate sale and came in $100k below contract.

Appraisals are estimates and opinion. I don't think it was ever intended to compete with machine learning or formulaic calculus. People expect too much from such judgments.

 

[Mejappz]

Are you referring to the study where they made conclusions about appraiser behavior by looking at AVM results rather than actual appraisal results? It would have been very interesting to see how well appraisers adopted that AVM-based study if the results had been difference.

Are you referring to the study where they made conclusions about appraiser behavior by looking at AVM results rather than actual appraisal results? It would have been very interesting to see how well appraisers adopted that AVM-based study if the results had been different

Go for it. Here are all the variables you will need to come with credible results. Courtesy of Bert. Post 193.


This is what you have to do.

1. Select a broad area for analysis that includes all racial groups, such as the Silicon Valley.
2. Make everyone submit to DNA analysis to determine their true racial heritage. See, most Americans are a mixture of just about everything. And even those coming up from Mexico and the rest of South America are a mixture of Spanish, Indian, Black and many other nationalities.
3. Collect data on the languages they speak
4. Get their religion.
5. Get their true gender; understand Facebook says there are 16 genders. So, that must somehow be standardized.
6. All the other usual data like age and so on.
7. Then search all the past sales transactions for the area with a good regression tool and try to find a significant correlation between race or some other of the above features and sale price and appraised values (yes you are going to have to have a history of all appraised values).
8. Don't forget average annual income.
9. Let the regression also regress on area/neighborhood.

I would bet you will find that race is insignificant compared to (1) Income, (2) Area/Neighborhood.

It's all nonsense. A lot of foreigners have the most expensive homes in California. Hispanics, Muslims, Chinese, Iranians, Slavs, etc., more or less have homes that reflect their social status and income. If market values in an area are low, then house prices are low. If there is racial discrimination, then you need to search for it in an area with similar homes and regress against race.

When I do my regression and study the residuals, I find differences, - but they can nearly all be tied to Quality/Condition/Aesthetics/Functional Utility/View. In fact, I don't have the time to check on the race of the owners, and that of course is in fact difficult to do with any accuracy.

Where does all the stupidity come from? My gosh. We have idiots everywhere in our society. Especially DC.

Are you referring to the study where they made conclusions about appraiser behavior by looking at AVM results rather than actual appraisal results? It would have been very interesting to see how well appraisers adopted that AVM-based study if the results had been different