black couple sues appraisal company for low appraisal on home

[Leo123]

Your response had absolutely nothing to do with my comment about the realities of most predominately black neighborhoods.

I was trying to stick to the topic but, you are correct. Renters don't have 'skin in the game' when it comes to property values therefore the incentive to maintain and upgrade is not strong.

 

[Leo123]

It may have something to do with when each appraisal was done. I looked on Zillow and the estimated value on that home has risen about 230k over the last 18 months. It doesnt give a timeline of events in the article.

That could very well be the case. I would have to see each appraiser's Market analysis. The article is pretty sparse on facts and, IMO, written as a racial hit piece against 'white' appraisers.

 

[tahuyaman]

I was trying to stick to the topic but, you are correct. Renters don't have 'skin in the game' when it comes to property values therefore the incentive to maintain and upgrade is not strong.

No motivation other than self respect. They don’t need to upgrade, only maintain.

That’s part of the problem with neighborhoods composed mostly of rentals. The renters won’t do anything to maintain these properties, so the owners have no reason to sink more money in them in upgrades.

 

[JoeB131]

Banks don't use one appraisal company. Usually they have several to speed up the process. People of any race can get three appraisals and each one will be different in some way.

Uh, appraisals cost money, Welfare Ray, and frankly, if I'm paying for it, I want accurate information. This wasn't accurate.

Not a 300k difference you ******* moron.

Maybe you're such a mark ass ***** though that when someone tries to stiff you for 300k you think they just have a different opinion. Actually that figures since your boy Trump is nothing but a grifter.

Naw, Ray is the kind of person who'd ***** when he loses even a cent, but the rest of us have to suck it up.

How about all the White families in this country that lost money when they sold their home because of some Negros moving into their neigborhood or the filthy government putting low income housing nearby? That loss would probably be over a trillion dollars. When are the Negros going to pay up?

That was kind of their own fault, wasn't it? Nobody made them move. The banks took advantage, so maybe they should pay up.

 

[JoeB131]

Blacks are definitely milking the lawsuit bank for money. They are making fortunes this way.

We may get an appraisal --- they should have gotten two. And then you can still sell the house for what you want or will settle for!! It's just to get an idea.

I suppose this appraisal had something to do with refinancing the house, wanting to get more money out of it. Sheeeeeesh.

Yes, how dare those black people think they have recourse to the law!

The Appraiser fucked up. Either he was a racist douchenoodle, or he was incompetent... but he fucked up.

 

[Ray From Cleveland]

1/4 million dollar difference is, IMO very suspicious though. Both appraisals need to be looked into and reviewed by industry professionals. The State Appraisal Board would be best for that. Don't know by the article what happened in the end.

When they appraised my property several years ago, it was half of what I was paying taxes on, so I went to the county to fight their estimate. They sat me in the room and showed me picture after picture of what they considered comparables. A week later they sent me a letter stating the appraisal company my bank used was FOS, and they only brought my property value down by 50% instead of 100% So I filed an appeal to the state court in Columbus. I didn't attend because I assumed they would just shoot my claim down anyway. When I got the ruling of the court, the three judge panel all ruled in my favor. You can't fight a claim made by a plaintiff that used an unbiased appraisal company as evidence.

And for the OP and others, I'm white, the county employees that held the hearing were mostly white (one black) and the bank I applied at was all white.

 

[JoeB131]

Seeing that home appraisals are not an exact science and they received a different one to their liking, I don’t see a strong case. But then again in our modern society stranger things have happened.

I see it as a slam dunk...

 

[JoeB131]

When they appraised my property several years ago, it was half of what I was paying taxes on, so I went to the county to fight their estimate. They sat me in the room and showed me picture after picture of what they considered comparables. A week later they sent me a letter stating the appraisal company my bank used was FOS, and they only brought my property value down by 50% instead of 100% So I filed an appeal to the state court in Columbus. I didn't attend because I assumed they would just shoot my claim down anyway. When I got the ruling of the court, the three judge panel all ruled in my favor. You can't fight a claim made by a plaintiff that used an unbiased appraisal company as evidence.

And for the OP and others, I'm white, the county employees that held the hearing were mostly white (one black) and the bank I applied at was all white.

Ray, you live in a slum suburb of Cleveland, which is like Slum-ception.

 

[Ray From Cleveland]

Unfortunately in most predominantly black neighborhoods you see mostly rentals. Very little owner lived in homes. With rentals there’s generally no pride in ownership. The renters don’t really care about the conditions outside the home. Thus a deteriorating neighborhood and lower property values.

Not really. We have more problems with owner occupied homes than rentals where I live.

Anytime I rent to a new tenant, I have to get an inspection by the city. They inspect inside, outside, garage, walkways, basement, backyard. Any violations I have to get repaired before they allow the new tenant to move in, and I have to get it re-inspected before I get the occupancy permit.

Some landlords don't keep their property up as they should, but that goes double for homeowners. The city cites anybody not keeping up their rental property or home. If the lease is made out for the tenant to keep up the property, that's between landlord and tenant. If the landlord doesn't have such an agreement with the tenant, then the landlord is responsible. Either way it's ultimately the landlords responsibility and the city needs to enforce their laws and ordinances.

 

[Leo123]

When they appraised my property several years ago, it was half of what I was paying taxes on, so I went to the county to fight their estimate. They sat me in the room and showed me picture after picture of what they considered comparables. A week later they sent me a letter stating the appraisal company my bank used was FOS, and they only brought my property value down by 50% instead of 100% So I filed an appeal to the state court in Columbus. I didn't attend because I assumed they would just shoot my claim down anyway. When I got the ruling of the court, the three judge panel all ruled in my favor. You can't fight a claim made by a plaintiff that used an unbiased appraisal company as evidence.

And for the OP and others, I'm white, the county employees that held the hearing were mostly white (one black) and the bank I applied at was all white.

FOS? Not sure what that means but, county assessors do mass appraisals, that is, they appraise large swaths and derive your taxes from that valuation.

 

[Ray From Cleveland]

FOS? Not sure what that means but, county assessors do mass appraisals, that is, they appraise large swaths and derive your taxes from that valuation.

FOS is full of shit.

Yes that is the way they make out their evaluations, but when somebody files for a hearing, they look into the matter more intensely.

They try to keep the appraisal up for more tax money of course, but the problem is the appeals court is 120 miles away from my suburb, and they assume a lot of people won't take the time off of work, drive all the way to the middle of the state to fight it. They'll just say to hell with it and take what crumbs the county gives them.

 

[Leo123]

FOS is full of shit.

Yes that is the way they make out their evaluations, but when somebody files for a hearing, they look into the matter more intensely.

They try to keep the appraisal up for more tax money of course, but the problem is the appeals court is 120 miles away from my suburb, and they assume a lot of people won't take the time off of work, drive all the way to the middle of the state to fight it. They'll just say to hell with it and take what crumbs the county gives them.

OH...OK. The Assessor thought the objective appraisal from your bank was 'full of shit.' Good on you for holding their feet to the fire. That appraisal from your bank was probably done per rules by Fannie Mae and/or HUD as well as the Uniform Standards of Professional Appraisal Practice recognized by those government institutions and the banking industry nationwide. Pretty hard from them to shoot that down and, you are correct, they depend on sheep just bending over. I have done appraisals to rebut tax assessments.

 

[Couchpotato]

Uh, appraisals cost money, Welfare Ray, and frankly, if I'm paying for it, I want accurate information. This wasn't accurate.

It may have been accurate depending on the timeline. That specific property was valued at 450-470 in Jan/Feb of 21 according to Zestimate. The house across the street from them and their neighbor's house sold for 450's during that time. A house 3 doors down sold for less than 400k in Feb 21. Right at this moment it's worth 680's according to Zestimate, that's due to the market not the race of the resident. If the original appraiser did the appraisal in the spring/summer of 21 then his appraisal was probably pretty spot on. If the second group came in in 2022 that would have accounted for the price differential. It was a totally different market.

That was kind of their own fault, wasn't it? Nobody made them move. The banks took advantage, so maybe they should pay up.

The bank doesnt own the appraisal company and cant influence them in any way. They have to take what the appraiser tells them as fact and base their decision on that. Even if the appraiser low balled these people because they were black, how would the bank make that determination? My guess is they added the bank in there because their pockets are likely much deeper than the appraisal company's.

 

[Leo123]

It may have been accurate depending on the timeline. That specific property was valued at 450-470 in Jan/Feb of 21 according to Zestimate. The house across the street from them and their neighbor's house sold for 450's during that time. A house 3 doors down sold for less than 400k in Feb 21. Right at this moment it's worth 680's according to Zestimate, that's due to the market not the race of the resident. If the original appraiser did the appraisal in the spring/summer of 21 then his appraisal was probably pretty spot on. If the second group came in in 2022 that would have accounted for the price differential. It was a totally different market.



The bank doesnt own the appraisal company and cant influence them in any way. They have to take what the appraiser tells them as fact and base their decision on that. Even if the appraiser low balled these people because they were black, how would the bank make that determination? My guess is they added the bank in there because their pockets are likely much deeper than the appraisal company's.

You are 100% correct. One of the most important facts in any appraisal is the 'effective date of appraisal' which is typically the actual date of inspection unless the appraisal is based on a future or past date which would be clearly shown and stated in the appraisal report.

Today, banks are actually prohibited from even hiring an appraiser because, in the past, lenders put pressure on appraisers to come up with a value and, if they didn't, they would not be hired again. Lenders get a commission, appraisers do not and cannot base even accepting a job based on a needed value.

 

[tahuyaman]

Not really. We have more problems with owner occupied homes than rentals where I live.

Anytime I rent to a new tenant, I have to get an inspection by the city. They inspect inside, outside, garage, walkways, basement, backyard. Any violations I have to get repaired before they allow the new tenant to move in, and I have to get it re-inspected before I get the occupancy permit.

Some landlords don't keep their property up as they should, but that goes double for homeowners. The city cites anybody not keeping up their rental property or home. If the lease is made out for the tenant to keep up the property, that's between landlord and tenant. If the landlord doesn't have such an agreement with the tenant, then the landlord is responsible. Either way it's ultimately the landlords responsibility and the city needs to enforce their laws and ordinances.

Not everyone takes pride on ownership Still, the most run down neighborhoods in most areas is where there are mostly rentals.

 

[tahuyaman]

I see it as a slam dunk...

I don't .

 

[initforme]

Sue the daylights out of the company.

 

[The Duke]

I want my home appraised for -$200,000, that way the government owes me tax money, amirite?

 

[Leo123]

I want my home appraised for -$200,000, that way the government owes me tax money, amirite?

I'm sure they'll pay you -$200,000. LOL

 

[Ray From Cleveland]

OH...OK. The Assessor thought the objective appraisal from your bank was 'full of shit.' Good on you for holding their feet to the fire. That appraisal from your bank was probably done per rules by Fannie Mae and/or HUD as well as the Uniform Standards of Professional Appraisal Practice recognized by those government institutions and the banking industry nationwide. Pretty hard from them to shoot that down and, you are correct, they depend on sheep just bending over. I have done appraisals to rebut tax assessments.

You would know better than me, but it's all a big government scam. I applied for my hearing in November of the prior year and didn't get a hearing date until July of the next year. After the hearing I figured out why: What the city school does is send out their lawyer to fight your claim because here, the school gets over half of all the property tax. So what they do is schedule everybody from my suburb on one or more days, and that way the lawyer isn't running back and forth to fight claims. They can schedule her to hear all the cases of our city in one day (or how many days it takes to get through all the cases of our city) so it's cheaper for the school.

You can have a judge in Cleveland hear the case, but who pays the judge? That's right, the county, and he or she is not about to side with you either. Like I said, a big racket over here.