Description
Professors' Corner - Fairness in Real Estate Appraisals: Valuation, Subjectivity, and Bias
Recorded on February 15, 2023
Panelists
- Cheryl Lyn Wade
- Heather Renee Abraham
- Elizabeth Korver-Glenn
Moderator:
- Shelby D Green
For many citizens, official and private discriminatory practices served as barriers to access, largely on the basis of race and ethnicity beginning with the home appraisal. The impact of this undervaluation, ripple through the housing markets. The panelists will offer insights on the ability of the Fair Housing Act and other legislative and regulatory initiatives to make appraisals bias-free.
Homeownership lies at the core of the American Dream, representing success, opportunity, and wealth. But for many citizens, America deferred that dream by official and private discriminatory practices that served as barriers to access, largely on the basis of race and ethnicity. The exclusion begins with the home appraisal—recent studies show that homes in majority-Black neighborhoods are appraised at less than half of those in neighborhoods with few or no Black residents. The impact of this undervaluation—from lost sales, higher down payments, higher refinance interest rates and higher mortgage insurance premiums—ripple through the housing markets.
The panelists will discuss “What happens to a dream deferred?” and offer insights on the ability of the Fair Housing Act and other legislative and regulatory initiatives to make appraisals bias-free.