The Observer: Real Estate Appraisal’s Diversity Problem

Jeff Hogan, Veros Real Estate Solutions’ (Veros) Vice President of Valuations, recently discussed the challenges of diversity in the real estate appraisal industry with The Sacramento Observer in the latest article titled, “Real Estate Appraisal’s Diversity Problem.”  

The real estate industry experts interviewed for the article shared that the industry has both an appraisal and a market bias problem in black-majority neighborhoods. The experts advise, an important way to reverse the legacy of racism that helped create these biases is having the government step in and make a greater effort to reverse the impacts of policies, such as historical redlining.

As an experienced appraiser, Jeff points out that appraisals should be based on the significant amounts of data analysis and research available to help determine the value of a home. However, he points out that unconscious bias or differences in taste can get in the way of appraisers from focusing on those data.

A more diverse appraisal industry may limit appraisal bias, and Jeff adds that a more diverse appraising industry starts with accessibility to training. For many minorities there are some barriers to entry into the profession, and having access to appraiser training, mentorship, and sponsors are a few of the roadblocks that must be addressed. For these reasons, Jeff worked with Valligent (a Veros Software Company), to create the Valligent Appraiser Training Program (VATP) as an effective solution to help appraiser candidates enter the field and to improve diversity and inclusion in appraisal work. To help significantly reduce subjectivity in property valuation, the program will provide technology, analytics, and training to appraiser trainees from various backgrounds. The program focuses on getting lender sponsors on board and connecting them with mentors, trainers, and trainees—giving the trainees the experience and network needed to start their careers. 

So, what can you do if an appraisal seems biased?

In closing, the article also explains why appraisers might be biased and shared advice on what homeowners can do about it. To learn what the advice is, read the full article and find out about the initiatives that encourage diversity in this profession: https://sacobserver.com/2023/05/real-estate-appraisals-diversity-problem/

If you would like to speak with someone about the topics in this article, please contact us at communications@veros.com. 

The Sacramento Observer: Real Estate Appraisal’s Diversity Problem