NCRC Just Economy Conference 2023
What will it take to appraise property fairly?
The devaluation of homes in Black communities has caused an estimated $156 billion loss in wealth. A recent NCRC study showed that appraisers are more likely to undervalue homes if they believe them to be Black-owned. But the issues affecting the appraisal industry go far deeper than the biases of individual appraisers. Are there solutions that will allow property to be evaluated fairly and accurately? One solution that has been proposed is the use of Automated Valuation Models (AVM), in which homes are appraised by computer programs. But are these algorithms free from bias? Other proposals include increasing diversity within the appraisal industry, reforming the reconsideration process, and requiring appraisers to report data on race and home values to the government. Are more drastic measures necessary, such as restructuring the authorities that set appraisal standards?