Seattle home appraisal reveals racial bias
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- เผยแพร่เมื่อ 26 ก.ย. 2024
- In Seattle and around the country, the color of someone's skin can impact the value of their home.
In the Clark home, kitchen conversations sizzle in life lessons.
“Generational wealth is money, houses, or things you pass down,” said Jaxton Clark, 10, while helping his father prepare breakfast in their Columbia City home.
It’s been four years since the Clarks bought their house.
“The homes are selling for over a million dollars here,” said Joe Clark. “We bought this house kind of under -- it was under duress.”
The Clarks immediately began renovating to make space for their two children.
“We put in a new kitchen, new bathroom, an extra bathroom. And we have plans to expand the second floor,” said Clark.
But while the Clarks were building up, they were surprised to learn the value of their home had gone down according to a home appraiser, sent by their mortgage company in April.
The Clarks requested the appraisal as they considered financing options for their renovations.
“[The appraisal] came in very low, which was really unexpected. [My agent] asked me, ‘How was the appraisal?’ I said, ‘It came in really low.’ ‘Oh, because it was $800,000-$900,000?’ and I’m like, ‘No, no, it was in the sixes,’” said Clark.
The three-bedroom home was valued at $670,000 dollars to be exact.
“It was quite amazing to have an appraisal that low in this market,” said Clark.
Earlier this year, Seattle real estate prices hit record highs, so Clark’s appraisal seemed questionably low. According to Zillow data, the typical home value in the Columbia City neighborhood this spring was over $900,000.
“I just want to make sure that we get the fair market value for the home,” said Clark.
Read the full story here: www.king5.com/...
They actually referenced manuals from the 30s-70s for their claim that today appraisals are racist. Unbelievable....
You are misrepresenting what they said. They showed the old manuals, said there was a law passed after that, intending to provide fairness. But removing the explicit use of race in training materials for appraising, and passing a law, has not fixed the problem. They gave an example of a disparate appraisal, and testimony by an expert that this is not a fluke. They did not use that old manual as evidence of current conditions.
This isn't evidence of racism. It's evidence of two different appraisers having different conclusions.
BINGO !!
Low appraisal, low property tax to pay.
You are confusing appraisal for sale, and assessment for property tax.
That’s not the point. Just shut up.
not correct.
Columbia city south Seattle, I grew up there, went Columbia annex and Columbia elementary school.
The appraiser lied to the white woman and spoke the truth to the actual homeowner.
This right here is called staying on code, defend your ppl even when they're wrong smh
@@ldydanielle Buy his house then for 900,000 and make a brother happy.
You won't be though.
@@tonyr.3435 I think you're missing the point of the story and the issues with discrepancies, it's okay though.
How does that explain the two different appraisals of the same house, and the expert who says this happens all the time.
ok racist
Are you sure that appraiser wasn’t also wearing a white cape? 🤔…🫢
In the name of “equity,” HUD has provided tens of millions in grant
money to nonprofits who now attempt to entrap hapless real property
appraisers in nefarious sting operations to sift out bias (read valuations that put
the commissions, profits and bonuses of Fudge’s friends at risk).
Once implicated, the doomed appraiser - there are currently about 300 caught
up in frivolous HUD probes - becomes mired in an endless investigation by
functionaries with little knowledge of real estate analytics. The effort chills the
protected speech of state-licensed appraisers, who are specifically engaged by
lenders to develop independent opinions of value. HUD announced in March
2023 that it would be awarding $54 million to 182 nonprofits to tease out
“biased appraisals.” Federal officials working together with private groups to
deprive third parties of protected speech, due process and equal protection is a
movie we’ve seen before.
Not exactly sure where this house is located - but on Redfin, houses in Columbia City is around the 700k range. The racism part of this story is still not right - but maybe there needs to be more info on this story.
Chase, King5 is reporting beyond any automated valuation and is reporting that an appraiser is engaging in illegal behavior. We should all be demanding the name of the appraiser and their company. It’s not enough to report racial bias when they have the facts in hand to actively inform and protect the public.
The video just stated that the house next door sold for 1 million last I checked that more than 700,000.
@@BlakeVoorhees I get it and I agree - my confusion is releasing this story on TH-cam in November and basing it on Zillow data back in Spring (1:24) is a little misleading. The housing market flucuated. Unless this story was done back in March and I'm just behind on the news.
Maybe do the same double-standard test with more than just TWO appraisers? I can't believe King5 would actually cover something with such a thin shell of content.
@@arnoldfernbladst3875 exactly. That said, the nearly identical-sized home in fixer condition on a similar-sized lot sold next door last year for $782K and change and the house across the street, almost twice the size and remodeled on a similar-sized lot sold for $1.1M this year. So an appraisal coming in on the Clark’s home under renovation at $640K would clearly be vetted by the reporter and producer before making allegations of racial bias. It’s my experience that HELOC appraisals often come in conservative low, but that isn’t what the reporter is claiming over racial bias. So let @King5Seattle protect their community first by making their reporting count and getting this appraiser whom they argue is engaging in illegal appraising practices out of the appraising community. If they truly feel they could be subject to slander and libel and withhold the name of the appraiser then they aren’t about the community and instead about ratings and then backing away from a story after stirring up racial discord. Now that would make their entire story seriously problematic journalism recklessly reported at the expense of progressing racial equity. Now don’t you think King5 would absolutely want to avoid that?
south italians at number 8, lol
As a Northern Italian (3rd Gen American), the Southern Italian racism is real even in Italy today. Bizarre, isn’t it?
Appraisals are a joke, and can easily vary that much depending on who is paying for the appraisal. If the mortgage company is choosing who does the appraisal, it’s going to be low because the mortgage company wants to protect their investment, and the appraiser wants to give the mortgage company what they want, and keep that business. If the homeowner is hiring the appraisal, the appraiser will give the homeowner the highest appraisal possible. There is no motive for an appraiser to alter an appraisal based on the race of the owner.
"There is no motive" - you're trying to use theory (wishful thinking) to disprove an actual result. Racism is not always conscious action. You admit that appraisals vary. Appraisals are subjective therefore vulnerable to biases. You can keep repeating 'no motive' but it doesn't change the result.
clown
@@unkannyunkanny9232 while there may be some subjective elements in an appraisal, ultimately it is objective because it is based on factual market data
Why in the first they went 2 miles away and not consider the house right next door?
I've seen the house across the street...it is MUCH nicer!
Ive not used a house across the street when its 2x-3x the size.
As a former realtor, I don't buy into this story for a second. Appriasals can be all over the place, and the only real way to check some sort of racist 'trend' is to have multiple appraisers rather than just two. People buy houses for the neighborhood and condition of the house - not because of the color of the previous owner.
clown
@@clearthelane2432 FU
@@arnoldfernbladst3875 F U yo mama clown boy 😂😂😂😂🖕🏿🖕🏿
@@5MaryMiss No, YOU'RE wrong! You obviously didn't read the follow up story.
What????!!! Wtf??? Sue the bastards!!!
That boy crazy 😂😂 lol
😂💯 and he’ll sue you back and win 😂
Appraisers don't care who lives in the house. They go by recent sales in the neighborhood.
Bad reporting.
So goes the theory but actual result disputes that.
How does that explain the two different appraisals of the same house, and the expert who says this happens all the time.
Data says otherwise, facts don't care about your feelings
ok racist
@@williamcondon7729 Why are some people better at their job than others?
Bubba Wallace 🤡
😆
EXACTLY !!
There is no room for racism. Period.
King5, your allegations are serious ones that need to be investigated and reported to the proper authorities-NOW.
You have all of our attention and a moral duty to publicly reveal the appraiser’s name and company name you are informing us is actively engaging in illegal appraising practices. You have the power to protect property owners right now.
Not in six months. Not in three months, but now.
Make your reporting matter.
Who is the appraiser and what is their company name?
Common in real estate. House is no way worth 900k. Redfin says 690. It’s all about how accurately or inaccurate the comps they pick are. Mine have always been very different from my actual house. He lied when he said it was less than they paid. Also if appraisal was half way thru a project like I suspect, it throws them off. Notice his trim and stuff is not done.
Guess what... You're a Racist
@@steveelrino1339 automated valuations provide a disservice to the public. Talented appraisers are key to a healthy real estate transaction and if this appraiser is racist then they have to be stopped. King5 would not be frivolously reporting this and they have a duty to bring solution to the public by protecting them from that first appraiser and their company. It’s already been six months since that low appraisal, so who knows how many other families have suffered.
@@BlakeVoorhees they are pretty accurate I have found. The house is a block from mlk and built 1912. That house fixed up is not 900k simply due to location plus 1912. I have been thru 5 appraisals and they are jokes. At first he just got a bad appraiser now I think the second was the crazy one
@@steveelrino1339 I think you’re missing the point. King5 is reporting that the low appraisal is based on racial bias, NOT on the home’s condition. We can’t all suddenly become visual appraisers and think we know what the value is and if you watch automated valuations, you know they change drastically once a home gets listed. They are not to be relied upon unless a person believes that automated valuations are up to date on any renovations, conditions of systems, defects, etc. Believing in automated valuations strips properties of their unique qualities and of a homeowner’s maintenance, updates and even previous negotiation skills to arrive to a sales price.
Great show
Dunno if this situation happens in Medina or hunts point, what would be the appraisal for different colors of owners.
Who was the appraiser? Hope they sue
They’ll have to sue redfin and Zillow too. They estimate it at 690 and 717 today. He paid 482
Race grifters… discussing..
Not sure if the appraiser has much case to sue for defamation if they are not being named.
Channel 5 was it the same appraisal firm.?How many appraisals provided to family? Maybe Seattle has some racist banks/ appraisal??
Does this specific appraiser frequently underestimate property values? We need more data to establish a pattern of misbehavior or negligence.
Channel 5 you really need to do better investigation because this story and the police shootings NEVER get a good and indepth reporting by you....just saying your reporting needs improvement.
@@RandallJamesPeterson Why not look at the other one to see if they overestimate property values?
Nice job of showing racism in real estate. It’s despicable!
There was no control in their little experiment. But hey that is 'science' now. No need to look further.
? The control was the appraisal with the white person present.
@@pattressel3864 No that is not a control. The control would something outside the experimental group to give a baseline.
@@pattressel3864 wrong.
Sue!
Dont think the appraiser can if they are not named.
😂
When does iT become clear The hate is real and iT ain't about who rents What?
The house next door that's clearly at least 600sq ft larger with a well landscaped yard was valued at a higher price? Weird....
This kind of talk is racist 🤡😂
I was wondering if you actually paid attention to the story. They were valuing the same home, just presenting a different owner.
This may also may be a hard case to prove racial bias though, as home valuations are highly subjective. Just by having different assessors, most people can see a large swing in valuations across different assessments.
How does that explain the two different appraisals of the same house, and the expert who says this happens all the time.
ok racist
Stop bringing in facts, burn the witch...I mean appraiser.