That's racist!

#18,482
#18,482
GoBigOrangeUT said:
Black couple sues after they say home valuation rises nearly $300,000 when shown by White colleague - CNN

Any real estate agents on here? This story is interesting.
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I applaud this effort. Some appraisers are absolutely incompetent (at best) or have an agenda (at worst).
I don't believe a case exists against LoanDepot. After the bubble on 09, banks are required to randomize their appraisals. Banks have a group of approved appraisers but do not specify which appraiser gets the job.
 
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#18,483
#18,483
McDad said:
I applaud this effort. Some appraisers are absolutely incompetent (at best) or have an agenda (at worst).
I don't believe a case exists against LoanDepot. After the bubble on 09, banks are required to randomize their appraisals. Banks have a group of approved appraisers but do not specify which appraiser gets the job.
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I agree about the LoanDepot part. I’m not sure how they would bear any legal responsibility.
 
#18,484
#18,484
C-south said:
Any mention of what the county appraiser came back with when assessing value for property taxes?
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It doesn’t mention it. It’s odd that an appraiser would value the home as similar to those in a black neighborhood and not in the affluent neighborhood it was in. It could be gross incompetence, or it could be something else more egregious. The first should end up with Lanham being fired, the second should end up with him being fired and sued.
 
#18,485
#18,485
GoBigOrangeUT said:
It doesn’t mention it. It’s odd that an appraiser would value the home as similar to those in a black neighborhood and not in the affluent neighborhood it was in. It could be gross incompetence, or it could be something else more egregious. The first should end up with Lanham being fired, the second should end up with him being fired and sued.
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Wonder if this has ever happened to a white couple?
 
#18,488
#18,488
C-south said:
Well yea because believe it or not everything isn’t racist. What if they go to actually sell the home and the only offer is $300,000 less than what the appraisal they preferred was? I guess that company could be sued as well.
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With the way the housing market is, nobody is offering 300,000 less if they are remotely interested in purchasing a home. That is a massive difference.
 
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#18,490
#18,490
Sea Ray said:
What did the appraiser have to gain by undervaluing the house? Is the argument here that he just wanted to stick it to the black family?
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Unless it can be proven the appraiser undercuts and then has an agent (partner) later offer to buy for more than appraisal but less than fmv, I don't know of any gain by the appraiser.
The appraiser simply went beyond their scope of judgement by modifying their value based on the ethnicity of the owners.
 
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#18,493
#18,493
GoBigOrangeUT said:
It doesn’t mention it. It’s odd that an appraiser would value the home as similar to those in a black neighborhood and not in the affluent neighborhood it was in. It could be gross incompetence, or it could be something else more egregious. The first should end up with Lanham being fired, the second should end up with him being fired and sued.
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This is why..from the article:
After the couple removed any indications that Black people lived there..

When a house is presentable and appeals to the masses it will be valued more.

In the past when I shopped for homes red flags were always brightly colored walls and an excessive amount of African art and/or black jesus paintings. Same goes for old White folks homes..tiled countertops and patterned furniture..all red flags. Strip that away and interest is piqued..then it peaks when I get to the neighborhood in person most likely.
 
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#18,494
#18,494
FLVOL_79 said:
This is why..from the article:
After the couple removed any indications that Black people lived there..

When a house is presentable and appeals to the masses it will be valued more.

In the past when I shopped for homes red flags were always brightly colored walls and an excessive amount of African art and/or black jesus paintings. Same goes for old White folks homes..tiled countertops and patterned furniture..all red flags. Strip that away and interest is piqued..then it peaks when I get to the neighborhood in person most likely.
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A $300,000 difference?
 
#18,495
#18,495
FLVOL_79 said:
This is why..from the article:
After the couple removed any indications that Black people lived there..

When a house is presentable and appeals to the masses it will be valued more.

In the past when I shopped for homes red flags were always brightly colored walls and an excessive amount of African art and/or black jesus paintings. Same goes for old White folks homes..tiled countertops and patterned furniture..all red flags. Strip that away and interest is piqued..then it peaks when I get to the neighborhood in person most likely.
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Not 300k though
 
#18,496
#18,496
McDad said:
Not 300k though
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Meh. What are the odds the house was trashed before then cleaned up? That alone could create a large valuation difference, but maybe not 300k. And Real Estate pricing isn't an exact science. I'm gonna go out on a limb and say their house was ghetto AF before they normalized it. The whole thing smells like a scam on the homeowners part to begin with.
 
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#18,497
#18,497
GoBigOrangeUT said:
A $300,000 difference?
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You'd be surprised what a few coats of paint and some proper decorating can do money wise. Also different appraisers, different lenders, etc. Does the story mention their credit at all? Of course it doesn't... They get denied a refi but then get another refi WAY above the actual value and they want to sue? Its a scam.

I my much younger years I remember getting denied store credit at a furniture joint then going down the street and getting a sh!tton at another furniture joint...and I'm a straight White male with a consistently fantastic credit score for my entire adult life. Sometimes its a crap shoot.
 
#18,498
#18,498
Without seeing both appraisals side by side, there is no way to tell if there was discrimination or not. It could simply be the most recent sales on the first appraisal we’re lower and in the 2nd appraisal different comps were used due to more recent sales. The amount of junk you have in your house does not affect value. Square footage, upgrades, quality of the structure, and recent sales affect value.
 
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#18,499
#18,499
825VOL said:
Without seeing both appraisals side by side, there is no way to tell if there was discrimination or not. It could simply be the most recent sales on the first appraisal we’re lower and in the 2nd appraisal different comps were used due to more recent sales. The amount of junk you have in your house does not affect value. Square footage, upgrades, quality of the structure, and recent sales affect value.
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My neighbors house is $1,500,000 on the market right now. Doesn't mean my house is gonna get appraised anywhere near that. Like you said, what comps? What upgrades, quality, etc.
 
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