April 17th 2023.
The Parkers from Ohio were determined to get the best value for their home during the appraisal process. But when their initial appraisal came up $60,000 short, they knew something was off. In an effort to get the desired value of their house, Erica Parker and her husband took a different approach, one that is unfortunately all too familiar for Black homeowners nationwide. “Whitewashing”, the act of altering something to favor, feature, or cater to white people, was their approach, and so they removed all items from the home that could identify them as Black, such as artwork and family photos, and replaced them with photos and memorabilia borrowed from a White neighbor. Fortunately, their efforts paid off and they received an appraisal for close to $92,000 more than the first.
Data from the Brookings Institute show that homes in Black neighborhoods are valued 23% lower than homes located in non-Black neighborhoods, regardless of any differences in quality and amenities. As a result of this, president of the National Association of Real Estate Brokers Lydia Pope has called for a change in the culture of appraising, while President Joe Biden has launched the Action Plan to Advance Property Appraisal and Valuation Equity (PAVE) to promote equity in the home appraisal process. These efforts should assist Federal Housing Administration borrowers in understanding the right way to request a “Reconsideration of Value” if they suspect bias in their appraisal.
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