Monthly Archive: April 2022

Sales Comparison Approach is Racist, as per Academics 26

Sales Comparison Approach is Racist

“…the modern appraisal industry perpetuates racial inequality through its continued use of the “sales comparison approach”… the sales comparison approach persists as the dominant method of assessing home value… the sales comparison approach — the most used method for contemporary residential appraisals — perpetuates inequities through maintaining historical hierarchies and current racialized definitions of comparability…” Appraisers, here’s a YouTube video that you MUST view. This person’s, Dr. Elizabeth Korver-Glenn, PhD, work is one of the key reasons why there is so much chatter about racist appraisers in the US. Her discussion of her book ‘Race Brokers‘ begins at the 8:30...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

Refuting the Negative Race Bated Accusations 12

Refuting the Negative Race Bated Accusations

We will sink under the weight of all the so-far unproved accusations. Appraisers, Tobias J. Peter, Assistant Director, AEI Housing Center Research Fellow, American Enterprise Institute (AEI), has weighed in on all the negative press and faulty ‘studies’ (by both GSE’s and others) that have been promulgated about how appraisers, as a whole, have systemic racism built-in when doing property inspections and appraisal reports. Faulty Evidence and Misdiagnosed Solutions Why centralizing appraisal standards and criteria under a new federal agency as proposed under the Fair Appraisal and Inequity Reform Act is not justified His well-written report, as testimony in a...

Appraisal / Appraisal News / Appraisers News

Appraisers Are Ultimately Liable for Data Collected by Third Parties 25

Appraisers Liable for Third Parties Data

Ultimately the appraiser is responsible and liable for data collected by third parties. There has been a lot of discussion and debate among appraisers around liability issues for data collected by third parties for hybrid and desktop appraisals. On April 22, 2022, the Maryland Commission of Real Estate Appraisers cautioned its appraisers that they are responsible for the data they rely upon. Hello Maryland Appraiser: It has come to the attention of the Maryland Commission of Real Estate Appraisers, Appraisal Management Companies, and Home Inspectors (“Commission”) that there may be confusion over where a supervising appraiser and trainee are supposed...

Appraisal / Appraisal News / Appraisers News / Trending / Uniform Standards of Professional Appraisal Practice / USPAP

Bias. Blame the Messenger. It's easier 17

Bias. It’s Easier to Blame the Messenger

No one wants to be the messenger… Appraisers are messengers. Why is their message so despicable? So biased? The messenger. Psychology research easily points out our tendency to dislike the bearer of bad news. It’s also intuitive. Bad news messengers do not smile when they bring the news. Sometimes they even look guilty. We humans can be really basic. We see a correlation between the bad news, the frown, and the messenger. Appraisers are messengers. Why is their message so despicable? So biased? In the entire real estate transaction, everyone wants to make a deal. Brokers want to make a...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM

Solving the ANSI Measuring Dilemma - A Simple Work Around 36

Solving the ANSI Measuring Dilemma

…a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal… Appraisers, I was chatting with an appraiser buddy last week about the ANSI measuring dilemma we all face when doing Conventional lending reports, which ultimately will wind up with Fannie Mae. In my view, my appraiser buddy has a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal, but we all know will cause considerable consternation among users of our reports, and with appraisers trying to figure out how to...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

First Known Racial Bias Court Case Against Appraiser 28

First Known Racial Bias Court Case Against Appraiser

It may mean that this will turn out to be the bellwether test case for other similar lawsuits against appraisers… Folks, a San Francisco, CA US District Court Judge has ruled that the bias suit against an appraiser can proceed. This link has the story: Judge finds plausible race discrimination in Black couple’s lawsuit over lowball appraisal | Courthouse News Service Appraiser Janette Miller with Miller and Perotti Real Estate Appraisers was hired by appraisal services company AMC Links to do the inspection in January 2020. The Austins’ lawsuit, filed this past December, claims Miller valued their home at $995,500...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

Scope Creep & the Imploding of Rules Have Little to Do With Appraising 24

Scope Creep & the Imploding of Rules

…the imploding rules then implemented, and the scope creep that evolved because the cart was leading the horse, has severely lessened the reliability of ALL appraisals in my opinion. ANSI, while certainly worthy of discussion and taking a position on, will not solve the real “appraisal problem” that we all have. It really isn’t an effective tool anyway, but what the heck do I know. Being one of those AG certified from the very beginning, too early to get trained by anyone above me, since 1992, and licensed in real estate since 1971, and a broker since 1991, in a...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Dystopian Future for Occupational Licensees; Appraisers Take Heed 72

Appraisers Take Heed

Her plight is an attack on occupational licensees everywhere. The nation’s long-suffering real estate appraisers, under attack by Congress in an election year, should pay close attention to what has happened in Nashville… Nurse’s Plight Signals Dystopian Future for Occupational Licensees; Appraisers Take Heed To err is human, but not if you’re a licensed nurse in the Regulatory Republic of Tennessee, where “dog eat dog” has become the state’s unofficial motto. In a first of its kind, a medical accident has resulted in both a license revocation and a criminal prosecution as a nurse was both stripped of her license...

Appraisal / Appraisal News / Appraisers News / Trending

Is This Room a Bedroom? 3

Is This Room a Bedroom?

I often see discussions on various forums about “is this room a bedroom”, or similar comments. In case you’ve never seen the IBC requirements, I found this on a set of building plans for a new house: IN EVERY SLEEPING ROOM, PROVIDE AN EMERGENCY EXIT WINDOW WITH MIN. HT. OF 24″ AND MIN. WIDTH OF 20″ AND NOT LESS THAN 5.7 SQ.FT. OF OPENABLE AREA AND NOT MORE THAN 44″ FROM FLR. TO SILL So to decipher: A BEDROOM egress window sill must be no more than 44” above the floor. The opening height of the window must be no...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA

PAVE May Pave Over Appraisers. The Blame Game Against Appraisers 19

PAVE May Pave Over Appraisers

The blame game against appraisers is continuing the fast and furious start, evidenced by the PAVE report. A synopsis is in the link: PAVE task force delivers plan on appraisal bias – Lexology Key info from the PAVE report. “Relevant agencies have also committed to addressing potential bias in the use of technology-based valuation tools through a rulemaking related to automated valuation models (AVMs), including the addition of a nondiscrimination quality control standard in the proposed rule.”  And, “In the coming months, the Task Force will assess: (i) the “expanded use of alternatives to traditional appraisals as a means of reducing...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / Political Action

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