Appraisers Don’t Use Race
Appraisers don’t use race… Race is NEVER considered during a valuation
Last week in a congressional hearing on the future of the appraisal profession, some research was used to suggest appraisers are showing racial bias and essentially undervaluing black neighborhoods. I was not expecting the conversation to go that way during the hearing and I’ll admit I’m deeply concerned about the emerging narrative of appraisers being racists…
In the congressional hearing a panelist talked about a study that shows black neighborhoods are devalued by $48,000 compared to otherwise similar white neighborhoods. That’s alarming and society needs to have some serious discussion about this, but this study has NOTHING to do with appraisers actually devaluing properties (read it here). When we hear the word “devaluation” it sounds like we’re talking about something appraisers are doing, but the $48,000 price disparity comes from the author studying price trends from Zillow rather than analyzing the actions of appraisers. In other words, appraisers are NOT devaluing homes by $48,000. Yet when congress members heard “devaluation” and the speaker saying appraisers are part of the problem, the impression is that appraisers are clearly showing bias by devaluing properties based on race. This impression has certainly been passed on via social media too.
Locations aren’t the same: The market isn’t doing the same thing everywhere and buyers are not willing to pay the same prices everywhere either. This is why the appraised value can vary so widely – even if homes are identical in different neighborhoods. The speaker’s $48,000 price disparity between black and white neighborhoods is truly shocking, but frankly that’s not an appraisal issue. The appraiser’s job isn’t to ensure values are the same everywhere. Appraisers use neighborhood sales data to come up with value and it would be unethical to borrow “comps” from a higher-priced area to jack up prices in a lower-priced community (or vice versa).
Appraisers don’t use race when valuing homes.
By Ms. X. The author is a Certified Residential Appraiser and has chosen to remain anonymous to protect their identity.
Of course anytime someone doesn’t get their way the race card or some other bullcrap is tossed out there. A friend of mine was complained on because he commented on an African American woman driving a Corvette. He told hey it was a nice car. Did she complain after he left the house? No. Did she complain the next day? No. However, a week after she received the report he’s suddenly a racist. Some people have been indoctrinated into full time victim status. The college’s and media are the largest source of this garbage.
I’m sorry can you please repeat that question? Did you know they pay cash for houses and if some houses were dropped off by a helicopter into other locations, they’d instantly be worth more, or possibly less? Appraisers are the follow up guys and both price and lending terms are set long before an appraiser ever shows up. A central records checking system, there goes the cash cow for the amc guys. Outmoded regulatory structure… As if tech systems elsewhere are being properly managed in an unbiased fashion, we all know they’re not per Project Veritas disclosures. A higher deminimus, because only rich people deserve robust consumer protection. We know all about ‘discrimination’, if you don’t pay to play with amc’s, you’re lucky to work.
Realtors and other agents used block busting techniques in 1964-65 after the Johnson administrations fair housing act. There was strong emotions from sellers to protect their old neighbors Until The agents conducted a parade of colored LOOKER’s I was not sure what I was learning then or now.
Also Appraisers were encouraged to drive a modest car, a Cadillac or Mercedes MIGHT bring complaints
Don blockbusting was common up through the early 1970’s. (I was an agent then). It was also strongly responded to (when identified) by mls Boards in SoCal where I worked back then. Usually, it entailed local brokers that had no morals and broke a lot of other laws and ethical rules too. Every single one I ever knew of back in the day eventually lost their license.
When I got back in the business in 1984 it was (in my area) non-existent. The Big Issue then was Eastin Act and necessary seller disclosures. Brokers were trying very hard to be legally compliant. In my experience anyway. Oddly block busting had the opposite effect that Biden suggests. It undermined values in traditionally ‘white’ markets through scare tactics aimed at gullible or biased owners naive enough to think color affected value.
Jeff Bodi that’s what the government wants. I say thats all Dandy but take away the damn race card and play fare
Bobby Jones If it’s not the race card it’s the sexist card, homophobic card, islamaphobia card, etc etc etc… permanent victim status. They have a classification for everything to divide americans. unfortunately the media and Universities have been largely successful
Jeff Bodi Blame the lawyers, it’s not the media or schools, they create a problem that doesn’t exist and then milk the litigation, just look at family law
Jeff Bodi that’s true so sick of america.
Correct your thinking. You’re tired of government corruption.
The outstanding principals of honesty, integrity, and accountability in the USA remain alive and well. Those principals will live as long as we do.
Such bullshit again… how does race play into the comparable sales. Very dumb America. Enough is enough with the race shit. Damn who cares.
It’s a set up for a new round of litigation, the lawyers in Congress will love it
Bobby, IF a Congress Member, believes racism is significantly present; it matters. If they don’t believe it, but the constituents do, it still matters. Even if it is only being used as a wedge issue, it still matters.
It matters because powerful people that control and influence how we do our jobs think it matters. Our best solution is to read and understand their positions. Factually refute them where incorrect, or recognize them when warranted.
Some members of the public are always going to believe it exists. If for no other reason than it exists within themselves, so they cannot imagine how it does not still exist among others.
As appraisers, we have to deal with the issue factually, and objectively…or we are going to be steamrollered over.
Mike is exactly correct.
But think of the “modernization”. Young people moving into the cities, rich people with Salt caps don’t find it equitable to own a home in the burbs and one in the city near work, so, investors buy up the low income neighborhoods, and raise rents. Oh my, the income approach for SFR might be bringing higher values, when the buyers are investors and not owner occupiers. But what will res appraisers do? Sales only because that’s what Fannie wants. Pay attention. There was a JT white paper a few years ago, written in conjunction with the builder’s association calling for mandated use of the income approach for brand new SFRs. Sure, it was fun to laugh at, after the market had crashed, but now, it is a real issue and they are building SFRs to be used as rentals. Especially when you consider the short term rentals.
Res appraisers truly need to research, comprehend and report values that reflect the interests of investors, when investors are present. Not just forget it, because Fannie doesn’t want it, or because it’s hard and a lot of work to do.
Short turn times restrain the research ability and should not be used as an excuse to caveat to what “Fannie wants” as the only consideration for market value, even if, the “typical buyer” is a much smaller percentage of the buyer market in a neighborhood, than what they used to be.
Pay attention folks. “Affordable Housing” is not your issue, and if it were, you to would have a definition for “black neighborhood”, and would have to record such in your report.
Right on Mike. Appraisers have to study each situation, location and actuation, as well as the property its self. We must charge enough fee to cover all issues that may come up in our chosen work
Such BS….. Congress and Bankers are about the crash the market and know it after S 2155- Dodd Frank Roll Back bill. They’re setting the groundwork for who to blame when it does crash. I give it a year.
These days everyone is accused of being racist. The problem is not with any race, it’s with humanity as a whole.
We as appraisers are collecting and analyzing the data provided by the market. The market tells the appraiser if there is a location adjustment. The appraiser does not randomly make a location adjustment because he/she feels it is an inferior area. If that were true I would agree with the article but that is so far from the truth. We don’t invent sales. We don’t have contact w buyers and sellers. I don’t see how we are devaluing certain areas when we don’t tell buyers/sellers what to list or offer in a transaction
Scott Taylor yeah you didn’t see the race box on the 1004 haha
We as appraisers doesn’t matter I am half black and Greek font ask me how or I will call you racist hahah appraisers are being screwed in neighborhoods period cause they just want us gone period
First it was a shortage of appraisers. Now we are racists? They don’t even know what the f**k we do. But they know at times we don’t allow them to make their deals. So what’s a few lies in order to get rid of us? Geesh.
This is my take from watching the entire meeting.
1. White appraisers are racists, but what about black appraisers in black markets? Do they “low ball” the market? Or do black appraisers in white markets over value homes to make white people happy?
2. Lower the appraisal standards, more licensed appraisers can fill the void.
3. Give loans to people who do not qualify use a taxpayer subsidy (entitlement).
4. Lower the FHA standards do not raise the FHMA standards (FNMA is the king, sorry Elvis).
5. Increase the de minimis level so they do not even need appraisers at all.
6. If values are lower in one market over another, it must be the appraisers fault.
7. One Congressman loved the fact that he made money on “low values”, from racists Appraisers.
8. The Chairmen did not even know that appraisals have 3 approaches to value.
* A good appraiser is not defined by skin color. Nor do appraisers deliberately “low ball properties” because of skin color. Appraisers simply report what is taking place, we do not set values. If a good appraiser knows his stuff he/she will not be moved by non essentials. If one is looking for racism, that is all one will see. Data can be manipulated to support any preconceived notion, using Zillow was the first mistake. Zillow has my property at $315K, comparable sales of the same model within 1 block $340K, so much for Zillow.
Loosen up guys. Life is to too short to worry about every little thing.
This is comical.. and unless Fannie or Freddie showed the hard-proof statistical data, they made it up.. because they are the only ones with figures large enough & reliable enough to make that conclusion…
How about they compare the contract prices in these neighborhoods to that of other communities..
And while they are at it, they can run statistics on GLA, quality, condition, functional utility, etc… – compared to other neighborhoods..
It has nothing to do with ‘black’ or ‘white’ neighborhoods.. it has to do with what the subject property is, and what the most reliable indicators of FAIR MARKET VALUE are..
If the house is a 2/1, with a ceiling that is halfway collapsed, then – your comps, in most cases, won’t be at the top of the market
What am I supposed to do? Use sales from white people neighborhoods? That would be racist as well. Please, don’t mix political correctness with real world issues.
I was under the impression that FNMA guidelines said to use the most comparable sales available. So if there are 3 good sales in the neighborhood so be it. But wait, if they don’t please the homeowner/borrower, realtors or loan officers here come more sales to review from 2, 5, 8 miles away just to make it work. WTF, I wish I could charge for wasting my time.
I suppose we should wrangle in those government assessors immediately. They’ve clearly picked the wrong comps. (sarcasm). One might also overlay government assessors quality ratings and FNMA Q & C ratings for comparative areas in question. We don’t control the quality of homes, we merely observe those points. You can’t force people to upgrade their homes. The opposite side of the race based comparison, is that the higher priced non black areas are swimming in debt and will actually be an anchor on the minority communities when they inevitably fall south because they’re over invested and the losses will be greater in those areas with market corrections. If there was an affordable area offering $70k home prices with low crime and strong employment opportunity in Colorado, I’d have been there a very long time ago. Such a location does not exist, not around here.
I’m quite positive I’ve heard similar arguments before, the ‘need’ to promote more lending and somehow create a more fair access point. The broken record skips on.
It’s the AMC’S that are racist they get to choose the appraiser.
The groundwork is being laid brick by brick to reduce the level of involvement of the appraiser and increase the reliance on technology. Our profession is being killed off very slowly and the bigger concern is why didn’t we have a voice at this hearing? Do we not have a lobbyist or organization staying on top of these things and making sure they are on the panel? Why are the AMCs and AI (really just representing commercial) the only people setting the narrative? Where are our state appraiser coalitions? Why couldn’t they have put someone on that panel? Who is going to represent us at these kinds of high level meetings? If we can’t get a person on a panel like this then we can complain on LinkedIn all we want but it won’t make a difference.
Don’t worry, they’ve left an option for micro lending for better home upkeep to current building standards. So you’ll have an option to promote a swifter pace of building code changes in order to promote more micro lending geared specifically for home upkeep. More debt is good for the under served poorer communities, so that way they’ll get higher pricing. If they adopt better home management methods to retain those effective ages, and are able to avoid indebtedness promoted by predatory lending practices, that is going to be someone else’s problem.
A late in the game effort was made to have Jonathan Miller there to speak for appraisers. Realistically it was too late. I think Pat and several others showing up was a good idea and we need to be showing up to ALL the House Finance Comm AND ASC meetings.
What surprised me was that the Attorney for the Mountain States Consumer Advocacy Group was replaced by Joan Trice…on very short notice. Joan to her credit spoke well to the issues.
My question is ‘how’ was she selected? I spoke with lobbyist attorney for American for Financial Reform and she was aware that Mtn States Atty had conflict in schedule, so I don’t suspect anything nefarious. Just curious.
My take is that we are not visible enough at these things.
Collateral Underwriter routinely assigns high risk scores to appraisals performed in minority dominated/credit challenged neighborhoods.
Is that our fault also?
How about Zillow’s zestimate?
I’ve been called worse. Lol. The numbers are what they are. Facts are facts. Race has virtually nothing to do with my daily job. And to literally every colleague I know personally this is ridiculous.
Because… Trust Technology! Read the Brookings dot edu article vainly trying to support this preconceived premise. He is not using the scientific method but rather is backing into preconceived results and selectively picking supportive research. Debunk that article by overlaying crime, incarceration, employment opportunity, and graduation statistics.
Audit the fed, the vast majority of QE fiat flows towards first receivers of money and not regular citizens. Arguments for keeping costs at a reasonable level are empty slogans, the fed continues to roll dollars of the printing press and gold is going to continue to jump like a track star. Market corrections are always inevitable.
Appraisers also spend money in their local communities. Redirecting these valuation service fees to consolidated tech conglomerates is only going to draw the wealth gap higher. Revaa does not support anything about the appraisal profession at large. 3 out of 4 appraisers licensed nationally refuse to work for appraisal management companies. Revaa = job killers. They discriminate against honest ethical traditional appraisers as a constant rule. Amc’s fail to engage in cost plus billing, because their services are worthless. All of their profits come off the backs of struggling appraisers. Redlining is gone, what oppresses city people these days is excessive taxes, abusive utility companies, infinite inflation as the fed rolls those dollars off the press. Pay a premium to live in a dangerous overtaxed under supplied area? Any takers?
Wow. Unbelievable. Bank lobbying at work??!
There is no such thing as a safe loan, so if you want more Americans to be more secure in houses, slow down excess lending and make it more difficult rather than less, reduce property tax, and eliminate estate tax. Long term, this will return us to times when people actually owned homes, and passed them on to their heirs without the need to leverage equity, and saving without needing to invest was actually beneficial rather than resulting in a negative return. Poor people are poor, because they do not own but rather live a life of servitude because they always pay substantial money to lenders. “Swindling futurity on a grand scale.” The desire for short term economic boosting is institutional memory. You’ve got to slow down lending in order to get people into better long term positions. Then they’ll pay less money to lenders and would instead have more money to spend on innovations, home improvements and upkeep, as well as regular gdp spending. Racing Americans into a glorious prosperous future, rather than racing us into even larger lending debt. Lenders won’t like that, but then again, I don’t think anyone on that panel really wants a reduction in lending activity. I did not see anyone advocating for true and complete home ownership and all the liberties that come with that. Origination at 80% ltv max, refinances at 70% ltv max, impoverished at 95% ltv and only under de minimis threshold. Eliminate all needs for subsidies, balance the market, slow it all down and return to a sane lending environment.
Location, location, location. The same “White” house in a different predominantly “White” neighborhood could be worth more or even less. The same applies to the “Black” house. But bullcrap is the same regardless of location.
So everyone, How was your Monday? Can’t wait for Tuesday’s article. Geeezzz……..
Why do we have “black neighborhoods”?
Is this still 1960?
Who is keeping/making neighborhoods segregated?
It sure isn’t appraisers “devaluing” properties, else, investors would be running in there buying up all the inventory and raising the rents.
Perhaps, as a profession, appraisers should ask for clarification of “black neighborhood”.
Because if there are such things, maybe they should be addressed in the appraisal, as to why it exists well past 60 years since Fair Housing Laws and LBJ was in office.
It’s too early to restructure anything, the ink on new better trade deals is not even dry yet. More power to all powerful lending corporations. More loans, more tax. Those guys are always finding clever ways to give themselves raises at other peoples expense.
Now that has some racial undertones for sure.
What do you mean, it’s just youtube. I live in an area where I’m the minority, and the proportions are increasing. I’m not out there crying about my home value not being as high as predominantly white areas. The prices are too damn high right now anyways and I’m miles from ‘uptown’. Not the place for me. We all live in our own worlds and it’s better that way. People whom don’t like where they’re at have the liberty to move elsewhere and seek different opportunity. The American dream is not about home prices, it’s about home ownership. It occurs to me that complete home ownership is easier to obtain in lower priced areas. The credit management circle jerk game to keep people from qualifying without being overburdened with requirements that have to take on credit continues unabated. Shouldn’t someone with a job, good credit, no credit cards, whom pays utility bills on time be able to qualify? Think about the concept of requiring a thrifty fiscally responsible person to have to get a credit card in order to qualify for a home loan. This disproportionally affects the poorest of our communities. But…. Blame the appraiser, it’s just easier.
Why are you taking it that way? Dont’ be a SJW. I’m the most non racist person you’ll ever meet and I’m surrounded by minorities right here where I live. I’m part minority myself. My grandfathers father was a full blooded indian. Give it up with the SJW rhetoric. Honest people are forced to be anonymous these days. Too many zealots out there ready to pounce on a moments notice. In case you did not bother to watch the whole video… And you mentioned stereotypes. That’s rich. Watch the video. You are in support of higher pricing structures for underserved communities?
This is a power grab. Computers don’t recognize race, so they can be perceived as “better” than appraisers in this respect. Computers read every check box on the forum except race, and no one has programed in “black neighborhoods”. Appraisers better pay attention.
AMCs better pay attention. AMCs better know their hybrid inspectors are very familiar with fair housing laws, and, that hybrid inspectors are LIABLE for fair housing laws, no differently than any other “licensed real estate professional”.
To go so deep into a pocket to pull out “black neighborhood” in a real estate discussion in this day and age, should put everyone on notice how badly they want to take the profession from you and control all the data and decisions.
Appraisers are gonna need a reputation defender, because the struggle to take control of all the real estate market is going to be very ugly, so that it can be “justified”.
Actually “Black” neighborhoods ARE already programmed in. The U.S. Census Bureau makes very specific detailed (but prohibited consideration data) available and inherent in census tract reporting. There is far greater opportunity for hidden red lining in automated systems, just like there is for prohibited A.I.R. violations in appraisal management systems / Platforms, than there is in AVMs…as bad as those are.
In a ‘best case’ scenario, where no intent exists to engage in racist behavior, Big Data will automatically include locational weighting based on zip codes and census tracts. IF there is a systemic flaw in any level of the current real estate market as practiced since the 1970’s to the present, it will be repeated in automated systems. Those same automated systems will continue to be used for predatory loan marketing.
A system designed to facilitate monitoring and compliance with ECOA and all fair credit requirements, has actually become a marketable tool to sell to the very people who target consumers based on age, race, educational background and income ranges.
Just look at FNMAs CU “heat” zones.
Pay no attention to the man behind the curtain. The credit reporting corporations with all their secret formulas have absolutely nothing to do with it. Move along….
From my experience, the issue I see in the lower-end neighborhoods is that very few of these homes are owner occupied.. I cannot begin to tell you how many houses I have appraised that have been destroyed by low-rent paying / or subsidized rent tenants..
Doors broken off the jambs, holes in walls, windows broken, paint vandalism, water damage, missing HVAC, etc…
It’s in almost every single one I’ve done..
I just did one last week.. it was a $19k purchase… the tenants just moved out, and the place was uninhabitable in its current state…
So what are appraisers supposed to do? Compare that house to the investor-flip that sold for $89K??
According to the politicians whom hold the future of our industry in their hands but apparently do not yet understand that price does not equal value… Everything should be appraised at a higher price and we need more subsidies! That’s big government and a runaway federal reserve for you. Without rising prices the fiat system does not work. Marion is right, it’s a power grab. They all showed up to advocate for higher prices, bigger government, and even more undeserved power handed to lenders.
Lower end homes and neighborhoods are found in white communities as well. Just for kicks I popped in my own zip code. Aside from getting the City wrong (which can lead to all kinds of Big Data computing errors I’d imagine), the zip code data appears consistent with my own observations. http://www.city-data.com/zips/90810.html
We are predominantly Latino; then Asian, then Black, then White and finally way down on the bottom mixed-2 or more race households. There is a more than $100k ‘value’ spread between ‘comp’ checking my property by zip code alone; census tract, or locally known competitive market area for the property type. The census tract data will skew down for Black and up for Asian dominated sub areas in my ‘neighborhood’. Not so much ‘anti’ Black as “pro-Asian” in localized sub areas.
So you agree we need a definition of “Black Neighborhood”, since we are held to Fair Housing Laws, we don’t have neighborhoods designated by color or ethnic groups, or by any of the “protected” classes, with the exception of families, because we still have 55+ communities/neighborhoods.
Oh my, oh my, oh my.
Your imagination is working overtime today. WHERE exactly did I say that??? Also, please do not put words in my mouth or attribute beliefs to me that I have not expressed myself.
I was very factually describing my own immediate and competitive market area. My part of the neighborhood is predominantly Latino and African American. Maybe 70/20 with the remainder being other minorities such as myself (white); Tongan, Samoan, Filipino. We are closer to buffer area constructs as well. The ‘nicer’ part of the neighborhood is to the north and starts trending toward the stats I cited via zip code. Further NxNW nearer the park and a preferred local elementary school (though same district) the mix trends more toward Asian.
NOT ONE of the racial or cultural characteristics accounts for value in my own area. Not one.
My POINT is that the area by the school and park (different census) is going to show higher prices (and values) for similar physical characteristics. The census data will ‘show’ an “Asian” sub area selling for more than surrounding asian / Latino / Black / White “areas” (as defined by census tract – NOT by locals). MY sub area (mainly Latino, with notable Black presence) will appear to sell for less. Again, it is NOT because of the races here, but because we are closer to industrial crap; apts and commercial uses. Not to mention a locally infamous gang.
Census tract data is going to show us selling for much less than the Park / nice school area. Those relying on big data stats will have “proof’ it is because of race. Any algorithms will incorporate the erroneous information as well.
Not putting words in your mouth. Just recognizing your description did not include the nomenclature that Congress is looking for, particularly since appraisers are both supposed to name and describe the neighborhood, and Congress has a name/description that you could not/did not use, nor identify, hence, we need the definition of the neighborhoods Congress is interested in.
That was all that I meant.
You are being ridiculous and looking to take this post somewhere never intended.
I posted a specific post about the demographics of my OWN competitive market area. Has nothing to do with any imaginary intent of definitions of congressional perceived ‘neighborhoods’.
The Collective minority imposes it will on the individual majority.
That’s on the tombstone of the USA.
Either standout or fit in.
I’ll stand out.
For Perry to undermine the hearing is unjustified to us in the trenches. You see racism Perry then take the stigma from your own eye and not cast it upon me!!!
Racism give me a break. Enough already with a victim population where people died for our liberties. That card was a joke after Perry mentions the solution as a TAX BREAK as one idea.
What experienced appraisers are not busting their behind only to be told we are racist and the solution DATA vs more white human appraisers (Perry said the vast majority are white)
Enough!!!
Stand Down or Stand Up for your rights or be oppressed by this collective logic onto your individuality (as a human vs one based on skin color)
Enough!!!
When a Black elected leader can force hands to be raised to agree or disagree on appraisal racism that’s just quite enough and he is concerned about his family in rural America how about those you just asked to consent to your logic and be photographed
Crazy
How is it he was allowed on this panel with such radical views.
https://twitter.com/andreperryedu?lang=en
He tweets and retweets and it appears if you do not go along to get along with his views YOUR ARE RACIST.
If my views do not equate to yours based on my skin color I’m automatically a Racist and I must hear it and say nothing regarding it in turn or I’m fueling the fire vs standing up for my individual rights.
We appraisers do our best but to put Racism on this platform is the most absurd thing I’ve ever seen.
How is it after you click on his tweet link above he was allowed to be on this panel and have such radical views. How?
Are we really that far gone now in this country that we must coddle this kind of behavior and fear it vs. putting out that fire immediately and stating it has no place here.
Mr. Perry I’m sorry you had such a tough upbringing but that has no basis on this hearing and your life experience and your desire to design and build Mixed Income Communities and or otherwise belongs in other hearings regarding. It does not belong here in the appraisal profession where we have worked so hard and have been paid so little with the greatest liability upon us only to add RACISM as the new liability.
Read his tweets and you’ll quickly see appraisers are not just racist, racism is seen with black students with debt as well based again on his tweets. How about this instead, student debt needs to be addressed and these very institutions that educated you into your belief systems and empower you to this extent need to be addressed well beyond the appraisal profession or the very pillars of our society as a whole are being whacked to the point of fracturing what remains.
In the video above he stated Don’t devalue yourself, yet in the very panel hearing he devalued an entire profession and all its members. So that book tour he is on seems to be motivated to selling his theory.
Crazy just crazy
How is this EVERYBODY GETS A TROPHY working out vs. the old school of hard knocks take it on the chin and get on with your life.
He advocated for more loans. That’s what he did.
Google: Brookings Institute bias. Google: Brookings institute lender donor.
These are the articles which you seek. Pay to play think tank, strictly left leaning.
https://www.forbes.com/sites/adamandrzejewski/2017/06/02/brookings-institution-the-progressive-jukebox-funded-by-u-s-taxpayers/
Look at all those sponsors! (final pages in the docs) 600m+ year over year, fast growth, increasing reliance on outside sponsors, including global investors and chinese banks.
https://www.brookings.edu/wp-content/uploads/2018/11/2018-annual-report.pdf
https://www.brookings.edu/wp-content/uploads/2017/12/2017-annual-report.pdf
Let’s play the Brookings.edu yearly disclosure drinking game. Every time you read the word globalism, or progressive ideology, take a shot. Keep voting blue…
AMC’s make me physically ill..
But if they paid $500+ like all my private panel clients, than I would do their work…
But they send orders every day at $300, which is less than the fees when I started 15yrs ago!! LOL
I move to have Mr. Perry removed from any and all testimony he provided based on his Biased nature both on race and upon Data without the appraiser as the solution as his testimony is misleading and riddled with methodologies that are fictions to the reality of USPAP and our requirements.
Remove his Testimony..
Reply supporting this removing it by stating such and keeping it simple. Ditto on the latest article state the same
State to remove, lets see thousands of appraisers state such here and on the other article.
http://appraisersblogs.com/race-baked-into-unregulated-big-data
STATE REMOVE MR PERRY’S TESTIMONY
Professor Perry is an impressive speaker and individual. His presentation covers a lot of neighborhoods identified over years of government processes.
Appraisers representing lenders have a precise obligation to Today’s F.M.V.
Using a 23% neighborhood adjustment when their is better local information is misleading and of little use to appraisers.
Groups trying to influence the public are good or bad or some of each. Some notable person in history said if you say something loud enough and long enough it will become the truth. Logical, historic statistics tend to protect us from those.
Education allows that protection and illustrates the proper use of statistics.
So stupid !!! Still trying to get loans done with AVM’s and not appraisers !!!
A democratic bill, totally baseless. They are the actual racist.
Mark, you have been brainwashed by right wing propaganda, please seek help if you actually think the Dems and Liberals are the racist ones.
Chris its a matter of historical fact. Look into which party the old Southern racists like Wallace and Sherriff in Selma belonged to. See which party resisted the passage of the Civil Rights Act. Most KKK members were NOT members of GOP back in the day. It’s not propaganda at all. It was daily news back in the early to late 1960s. Print, radio, and TV…long before internet trolling.
If you honestly research the history of the democratic party from post Civil War up through at least the 1960’s you may be surprised. I’ll concede liberals back then weren’t overt racists. Mainly socialists and hippies but not racists.
With due respect, you are many decades out of date my friend. Dems and liberals want to help and care about others. Republican Now work for the wealthy who own stocks. For 4 years now the Repubs are trying to get rid of the law that was put in place to protect the general public from the greedy health insurers…..and have done nothing to reign in the pharmaceuticals. I am still a republican…but vote independent for the past 30 years.
The liberal U.S. House of Representatives, refused to allow debate for nearly two years Who cares about racism in today’s world mean when that happens. What is racism when there is not a predominant race. First thing you know we will have all Chinese, or maybe North Koreans appraisers
I have a big rental portfolio. My refinances stalled thrice on different properties only when one specific appraiser picked up my appraisals. He was the only clown who asked me to show the rehab budget every single time and made snarky comments while going around the house. No other appraiser has ever asked me to show the money I spent. It’s none of their business whether I spent 100k or $10 fixing that house. All the stalled appraisals came back fine when I reordered the appraisals with someone else. Race does play a factor and racist people like to say that their victims play the race card. It’s a very convenient excuse for them.
Who says his killing your refinances had anything to do with race? Maybe he’s just a bad appraiser. Or maybe he does that to everyone. Be careful about judging an entire profession just because you had a bad experience with 1 appraiser, and assuming it’s due to race. That, in itself, is racist.
Where did I judge the ENTIRE PROFESSION when I clearly talk about the behavior of ONE appraiser. Half of the comments here imply that pretty much every victim is a liberal or race baiter. How come you didn’t reply to those post with your ‘words of wisdom’ about judging everyone? Furthermore, having known about his comments and demeanor based on who unlocks the the property for his appraisal, I am in a much better position to judge whether he is a bad or a biased appraiser.
@Chandrakanth, Bull. The response is pure ignorance about the process. In other words fundamentally dishonest. Income and operating g expenses going back at least three years is a common request on income property. The amount you claim to have spent or allocated for maintenance and repairs is a valid appraisal question.
Especially if you are contending value is or was favorably affected by claimed repairs.
No one spends extra money on second appraisals just because an appraisal was held up for verification of operating expenses. Sounds like you engaged in good old fashioned (prohibited) appraisal shopping until you found someone improperly accommodating your desire.
If I purchase a home for 150k and spend only 100k in repairs, the appraiser doesn’t get to say that the value of the home is 300k when the recent comparable home sales in the same HOA are 400k. I have done and will continue to do everything to dispute such reports. You accuse me of being ignorant and dishonest. You think you can hurl personal insults because you are hiding behind a keyboard? Or do you think you stand on some more moral pedestal you arrogant POS?
Chandrakanth, we encourage lively conversation but we do insist that you follow our guidelines. Threats, the use of hateful language, or personal attacks is a violation of our guidelines. Going forward, your comments will be moderated before being approved.
You continue to display ignorance of the process and for what its worth, my own background. I don’t ‘hide’ anywhere.
Both my professional and personal information is easily found online. If you were to click on the link following my name you would see that.
IF you believed ‘comparables” (meaning closely similar) in the same HOA are selling for $400,000 and that is indicative of your property’s value, then that is an extremely easy to prove.
It is so easy to prove that I can only assume your inability to do so is either because you don’t truly understand what a comparable is; or you are making it up. No appraiser low balls an appraisal for $300,000 when data suggests $400,000 is likely. Sounds like you underestimated the potential value of your flip…& just need someone else to blame for your bad judgement.
Anytime you are feeling ‘froggy’ and you are going to be in the Long Beach, California area, you DO please be sure to let me know, okay?
Well said Mike !!! I agree 100% with you !!
The last people on earth who will admit racism exists are the people who benefit from it the most (white males). Guess what race and gender the majority of appraisers are? I’m sure most of them commenting on this article will be incensed at my truth telling. The truth hurts especially when you thought no one would realize it.
Benefit? Show me how appraisers benefit from undervaluing properties based on the race of the buyer or the homeowner? My fee is the same no matter the race of the buyer or the seller. Almost always, we don’t even know the race of the buyer or the seller. Last time I checked, appraisers appraised property, not people.
I’ve been appraising for almost 30 years and I have never met a racist appraiser, seen or heard of a single case where an appraiser has been accused of bias.
The same people who today are screaming “appraisers are racist” just because their property didn’t appraise for what they thought it should have, will be blaming the same “racist appraisers” for their overvalued property and underwater mortgage when the next real estate crash happens.
To avoid being grouped together with the “white racist males”, I should probably add that I am a female POC appraiser!