Working Paper 24-06: Home Purchase Appraisals in Minority Neighborhoods

[shrubberyvaluation]

I looked over the 'working paper' and what struck me is the amount of regurgitation of numbers, over slicing and dicing. But a couple of fundamental problems with the analysis, again its based on 'census tracts' and appraisers don't define neighborhoods by census tracts and every report in the last twenty years should name the streets. So it would be beneficial for the authors to do the work right. Second, there seems to be a conclusion of 'correlation' but I couldn't see a stated R2 (so flawed statistical analysis) or hiding the validity of the analysis).

And as Judges are wont to say, "Appraisal isn't science, its as much art as science."

Even more so homebuyers dont care about census tracts and they can contain different priced market areas.

 

[shrubberyvaluation]

At what point did lenders decide that the appraisal opinion of value is theirs to decide if acceptable. Shouldn't it be if you don't like our opinion of value, then you are free to get another opinion of value instead of crucifying the appraiser whether justifiable or not. That is our job to render an opinion of value. You can trust it or not, but don't make it a crucifying offense to render a value you don't expect. Now, completing a fraudulent appraisal or misleading appraisal is a different story. But, that typically is not the case when the opinion of value is lower than the contract price. Some lenders understand and trust their appraisers and some simply do not.

Yes the narrative that people are lowballing certain groups is hard to believe since its the fast track to losing all of your clients.

 

[Digger88]

no waivers in east cleveland...

I googled it

 

[djd09]

I googled it

it is even more ravishing in person..