$100k Increase in Home Value????

[Kutnupe14]

INDIANAPOLIS — A housing discrimination complaint filed by a Black Indianapolis homeowner alleges that after she removed items from her home that identified her race and asked a white male friend to sit in on an appraisal, the value of her home jumped more than $100,000.

Indianapolis homeowner files discrimination complaint after removal of Black identifiers leads to $100,000 appraisal increase

INDIANAPOLIS — A housing discrimination complaint filed by a Black Indianapolis homeowner alleges that after she removed items from her home that identified her race and asked a white male fr…

www.google.com

Can someone explain the difference? Is this a common occurrence, or does one think this is a one off?

 

[edwea]

Don't know if this is common or not, but I hope she sells before the county assessor reads this and decides to up her assessed value. Tax time will HURT next year!

 

[tetter]

I have known of a case in which a second appraisal was exactly double the first one. No race changes involved. Assessing the value of a property, especially in a volatile market, is a pretty inexact process.

 

[churchmouse]

A house is a house in this market and yes one appraisal might not match the 2nd. Neighborhood might have a small effect depending.

 

[Tryin']

I have no idea what the whole story is. My related experience: I had two appraisals within a week in a "stable" year for home buying that were $35k different on an $80k purchase price.

 

[JCSR]

Article reads like a race baiter looking to get paid.

 

[femurphy77]

Sounds like she's brought up a valid concern, don't know if it's common or not.

 

[DoggyDaddy]

Sounds like the reverse of what CCR was singing about...

"Some folks are born silver spoon in hand
Lord, don't they help themselves, yeah
But when the taxman comes to the door
Lord, the house look a like a rummage sale, yeah"

 

[JCSR]

This lady was wanting to refinance, not sell on the open market. The appraisers for the bank(s) is not the same as an independent appraisal prior to listing on the market. . No doubt the FHCCI sent an appraiser to get the fair market value. I think there is a huge difference there.

 

[IndyBeerman]

Indianapolis homeowner files discrimination complaint after removal of Black identifiers leads to $100,000 appraisal increase

INDIANAPOLIS — A housing discrimination complaint filed by a Black Indianapolis homeowner alleges that after she removed items from her home that identified her race and asked a white male fr…

www.google.com

Can someone explain the difference? Is this a common occurrence, or does one think this is a one off?

I think there's more to it than being reported. A properly staged home can bring more money.
Was the property and exterior in disarray on the first one and cleaned up looking good.

A proper appraisal will have a printout of both the exterior and interior of the home, it'll come out real quick if both appraisals was done by a qualified company/person.
Also when was the first one done and the second one done. Home prices have been spiking all around, even compared to 6 months ago.

 

[KittySlayer]

Appraisals I have been involved with work backwards from the value you want.

Do you want a high appraisal? Here you go, you qualify for your mortgage.

Do you want a low appraisal? Sorry it is so low (like you asked) and your tax assessment is low.

 

[The Bubba Effect]

Appraisals I have been involved with work backwards from the value you want.

Do you want a high appraisal? Here you go, you qualify for your mortgage.

Do you want a low appraisal? Sorry it is so low (like you asked) and your tax assessment is low.

I spent 15 years in real estate and that was exactly my experience.

 

[JCSR]

After re-reading the article I see she was actually wanting a home equity loan. This tells me the appraisal was the amount the back would loan her on the home equity. That is not necessarily market value. This could be a factor as well.

 

[Brad69]

If you need a token white guy just PM me!

In case anyone don’t know KUT drives a pickup and eats red meat.

 

[churchmouse]

I spent 15 years in real estate and that was exactly my experience.

But also an appraisal even on a Re-Fi takes into consideration the houses in a specific distance surrounding you that have recently sold. Ours always did. And still do.

 

[OkieGirl]

I think she has a case.

Unless her appraiser comped out the home several months after the banks appraisers did, or comped better built homes that aren't appropriate depending on her homes builder, there shouldn't ever be a change that drastic in the appraisal value of a home. Yes, when the bank is doing a refinance their appraiser tends to be conservative in selecting comps. And if the buyer is concerned then a second appraisal is warranted. I haven't been in real estate since '07 but I think this deserves serious consideration.

The truth will be told in the comparable sales selected. That would have been documented in the appraisal report and will be reviewed. For Example, the homeowner thinks her home value is more comparable to those built by Ryland and not C.P. Morgan...but she bought a Beazer built home. Um, the comps on sales of like and kind would be more appropriate and the Ryland homes wouldn't be an appropriate comp.

 

[bwframe]

You know this is about race. I mean, it's 2021, right?

 

[NKBJ]

Is this a race thing?

 

[Ingomike]

We do not have the whole story here.

As someone said it may be based on what the bank wanted to loan.

An appraisal for a bank loan is not market value appraisal, it is an appraisal that verifies the value the bank is loaning. Was it even a full appraisal? Lost of nuance and details missing.

Now to the appraiser, were they competent in the area of the home? What were their instructions from the bank? Same bank and instructions every time? What did the appraiser have to gain from issuing a low appraisal? Low appraisals mean more work and questions for no more money, far easier to just give the value than deal with the appeals etc.

Where is the house? An appraisal is one individuals opinion, and as stated here those opinions can vary without prejudice. Could it be in an area of revitalization where one third of the homes are like new flips and two thirds still needing significant work? The first appraisals comped it to the two thirds as it was not a new flip, but the third comped it to the new flips?

 

[JCSR]

Is this a race thing?

Has Kut ever posted anything that wasn't ?