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Similar trends exist in the buyer’s market. Research has found that homes in Black and Latino neighborhoods are persistently undervalued by appraisers, further
by stormdennis 5y ago
Similar trends exist in the buyer’s market. Research has found that homes in Black and Latino neighborhoods are persistently undervalued by appraisers, further widening the racial wealth gap.
That sounds nonsensical to me.
Isn't something only worth what people are prepared to pay for it.
Appraisers take local past sale prices into account when calculating a valuation.
If properties are undervalued by appraisers then they will attract more potential buyers. They will bid the prices for the area up, which will then be reflected in later appraisals unless the appraisers want to go out of business.
- John23832 5y agoCompetitive bids on houses is at relatively new phenomenon caused by our current housing crunch. Typically, the assessment is the price of sale. The idea being that you should do whatever work on your home that needs to be done to increase the value before appraisal. In that (more realistic) market, persistent undervaluing based on anything other than the actual house for sale is taking money out of the home owners pocket from the sale. If this happens because of race, then this is obviously an issue.
- stormdennis 5y agoIn that (more realistic) market, persistent undervaluing based on anything other than the actual house for sale is taking money out of the home owners pocket from the sale. If this happens because of race, then this is obviously an issue. Well it's an issue for the seller but a boon for the buyer who also would be likely to be from the same race.
- mrVentures 5y agoRacism doesn't make much sense to me neither but you can lookup the case studies. I remember one story about how a Black person asked their White friend to do the appraiser tour (after replacing his family photos with photos of his friends family) and saw a significant increase in the valuation.
- q1w2 5y agoanecdotes get propagated if they fit a certain narrative, and don't if they don't. That's why we cannot use them to argue a point.