The Appraisal Blog

Appraiser bias has been a hot topic in the appraisal industry for a few years now.  The stories of black homeowners who have had a "low" appraisal only to have it reappraised higher after the house is "white washed" sound shocking.

I've been following several of these stories including this one.  My general observation is that there seems to be some fairly large misunderstandings about what an appraisal is, who it is for, and what impact it can and can not have.  In some cases I've actually researched the specific property and did my own analysis comparing the two appraisal.  Many times it appears that the second, higher, appraisal is actually the one in error.  Others it is not so clear.

It this video I could not identify the specific property, however I do take exception to some of the statements made by NBC and the homeowner.  

1) An appraisal does not have ANY impact on property taxes.  That is factually wrong.
2) An appraisal does not have ANY impact on insurance rates.  That is factually wrong.
3) An appraisal does not dictate what a house will sell for.  It may affect how much an owner or buyer can borrow for the property.  But you can sell your house for whatever you want.  And yes, appraisals cut the value of sales contract all the time.  It is not a rubber stamp.  They also, by the way, come in higher than contract prices too.

I'll have more to say about these claims as they come up.  Stay tuned ...



https://www.nbcnews.com/nightly-news/video/does-race-impact-home-appraisals-163040837806