Thursday, 5 August 2021 | The Latest Buzz for the Appraisal Industry

Racial and Ethnic Bias in the Appraisal Process


Today’s Buzzcast topic is the Racial and Ethnic Bias in the Appraisal Process with Jillian White, Head of Collateral for Better.com, and Joan Trice, Founder of Allterra Group, LLC. We sat down with Jillian and Joan to discuss how the appraisal process can still be impacted directly or indirectly by bias.

What is racial and ethnic bias and how is it impacting the industry? What is unconscious bias? What data and information represents this bias? What are some examples? These questions and much more will be answered between Jillian and Joan as they dive into this hot button issue.

Have any comments or would you like to submit content of your own? Email comments@appraisalbuzz.com.

Responses

  1. I’m one of the many “Old white appraisers” who’ve been in the profession for longer than I care to admit anymore… I Thought Jillian was excellent and made very good points. I watched the CRN webinar, and frankly, I was not impressed with the presenters, who were obviously experts on unconscious bias, but also obviously knew nothing about the appraisal profession, and did not offer any true insights into the case, or steps that could be taken to prevent the situation moving forward. Jillian provided both. I think that before the Bias experts give any more webinars top appraisers they need to spend some time with Jillian.

  2. This was an interesting video. I thought the clarification on the notorious appraisal was very informative. I can remember more than one article on home selling to advising homeowner to remove all photos and personal knick knacks from view, basically depersonalize the home. Looking at most interior photos on my MLS system, there are almost no personal photos or any other personal decor items in the photos. The experience related in the video took the depersonalization to another level. I am so sorry that happened. Joan’s comments regarding her hypothetical appraisal of a home in a “Black” neighborhood and using not the most proximate comps, but comps in another “Black” neighborhood were disturbing. Race as a factor in an appraisal and by extension, comp selection is forbidden by USPAP, Ethics Rule. I think most appraisers are appraising the property and not the ethnicity of the occupants, but it appears there are some who are choosing to do both.

  3. Wait what… One of the ladies just said if she was appraising a property of a black owner in a black neighborhood and there are no comps then she would search in another black community? What an incredible statement. Turn your license in immediately, you have no business working in this industry. We are real estate appraisers, we look at the physical characteristics of the subject property not whatever the hell you are doing.
    The other comment that was made as to why would you use a comp that is 1 mile away when there was a more recent sale within a .25 mile radius unless you were racially bias. Uhhhh lets see, I don’t know maybe condition, quality, upgrades, amenities etc. This comes up everyday in my business. You have a home that hasn’t been updated in 30 years and you choose your comparables accordingly, an agent submits a reconsideration of value under the premise that the sale they provided has a more recent sale date and might be closer (not always). You go to mls and the reconsideration takes all of 3 seconds to see that they have submitted a property that has been completely renovated from top to bottom. Nothing at all similar to the subject property but it does have a more recent sale date so they have that one going for them.
    Call me crazy but I look at the subject property and its physical characteristics and choose comparables from the same neighborhood with similar characteristics. I don’t look at what’s on the wall or not on the wall, mls doesn’t say if the comparable you are using was owned by a white person, black person, yellow or green for that matter, its just a house in my opinion. Is it in good condition or is it poor condition, upgrades or no upgrades, pool or no pool.

  4. Copy/paste from Realtors.com on how to sell your home:

    4. Depersonalize your space
    The next step on your declutter list? Sellers should remove any distractions so the buyers can visualize themselves and their family living in the property, says Kipton Cronkite, a real estate agent with Douglas Elliman in New York.
    So per haps aunt and uncle couldn’t sell their home because it was too personal, not too Black.

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