REDFIN How Dare You!
The following Redfin article is exceptionally offensive to everyone in the real estate business and related sectors, who actually know what they are talking about, to people that are not racists, and who are offended at being falsely called racists directly or by inference.
Redfin Study: Homes in Black Neighborhoods Are Undervalued by an Average of $46,000 | Redfin Press Center
REDFIN executives ought to know better than to permit their name to be associated with such levels of reckless dishonesty, deception, and misinformation.
Hopefully, the marketplace will ‘reward’ them appropriately.
Pay attention to the statements “after adjusting” for all significant differences. Which is then refuted further in the article by their own comments. They clearly have not adjusted for all market significant claims.
Frankly, it doesn’t appear that they have adequately adjusted for any of the differences using any nationally or internationally recognized real estate appraisal approaches. Certainly, none were disclosed. No methodology was identified. No credible reconciliation of data was provided.
Buyers of real estate in ALL instances consider LOCATION to be a huge factor. The old adage about location, location, location being the three most important considerations in buying real estate still applies. Yet Redfin is largely dismissive of the influence on value of proximity to parks; & makes absolutely unfounded broad sweeping generalizations concerning funding for school districts based on race (that is ILLEGAL in California).
They then go on to admit the only city they considered crime rates for was Chicago!
Ostensibly because all the other cities lacked adequate data! Another outrageous assumption. More likely that the results from such analyses failed to support their spurious allegations and contentions.
It’s doubtful they were able to properly account for other major locational factors such as frontage to busy traffic streets, alleys, adverse commercial or industrial uses nearby, rail lines, airports, public transportation, incompatible land uses, or neighborhood reputations evidenced by excessive graffiti or ‘Detroit style’ visible abandonment.
Since Chicago is mentioned by Redfin, what percentage of value loss is attributable to proximity to any of the meat rendering plants there, or associated odors?
On the other side of the location coin are positive or beneficial locational characteristics. Do Chicago residents place a premium on overlooking the Lake or other waterways?
The reputation for responsiveness and adequacy of protection by police, fire, and other emergency services is a big concern to many people. The perceived quality of local political leadership is also an issue. The latter category has been demonstrably lacking in Chicago leadership for decades.
Contrary to demands by limited self-serving groups with their own agendas, MOST Americans (all races) WANT good police protection. Most Americans do NOT want police departments ‘defunded’.
Most Americans will NOT pay a premium to live in areas like “Chaz” or “Chop” or other areas where city leaders have abdicated their obligations to ‘protect & serve’.
Most Americans don’t pay location premiums to live in neighborhoods where needles or human feces line the streets.
Most Americans don’t want to have to explain to their kids why ‘the ladies’ (or the guys dressed like ladies) are always standing on the street corners and talking to people in all the cars that stop by.
Automated ‘valuation’ modeling and systems have long been known to be inadequate for accurate market value analysis. They fail to account for MANY value-related factors that simply cannot be quantified scientifically. What part did these play in Redfin’s incompetent and spuriously inaccurate development of incorrect conclusions?
The value of an ocean view across the street is one such characteristic. While science or pairing MAY produce a broad range of possible value contributions for such a view, the DEGREE to which the view is valued in the specific marketplace is subjective and requires local expertise and experience. In short, it requires the ‘artful’ application of valuation techniques. Whether done by a competent agent or an appraiser.
REDFIN apparently (clearly?) had an agenda to promote. That of purported systemic racism in America. They were not about to let facts to the contrary or knowledge of recognized valuation techniques interfere with their narrative.
It never ceases to amaze me that the only people that can identify purported value disparities in entire neighborhoods are people with zero appraisal qualifications, integrity, or credibility.
Value disparities that cannot pass even cursory factual analyses. The article is full of unsupported claims & contentions.
It’s one thing to identify, acknowledge & alleviate real racism in America. It’s quite another to perpetuate a lie. Society cannot correct that which was fabricated in the first place.
States with mandatory USPAP compliance regulations in place should take legal action against the author and sponsoring company for the appraisal conclusions being offered without any degree of competency.
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