The NCRC released a report demonstrating a groundbreaking study about racially biased home appraisals utilizing mystery shoppers in Baltimore, MD. In addition, the study revealed that real estate appraisers deliver better assistance to White homeowners than Black homeowners. The appraisers assign higher values to residences they believe to be White-owned, as well.
Black/White interracial partners who own homes served as “testers.” Seven tests were conducted, consisting of 14 appraisals. Half of the appraisers met with Black testers, and half of the appraisers met with their White companions. The results indicated that White homeowners received better treatment from appraisers. Also, the appraisers deemed the homes more valuable when the White partners showed them.
Racially biased home appraisals is a serious issue affecting the appraisal industry. One of the least diverse industries in the United States. Previous research studies have shown that appraisers assign higher values to homes in White neighborhoods than comparable homes in predominantly Black/Latino communities. However, NCRC’s study shows that the race of the homeowner can play a substantial role in the valuation of a home. As a result, communities of color have lost billions of dollars in wealth because of the frequent devaluation of their homes.
Click the link HERE to read the full study.
News – Community & Economic Development Committee (cedphilly.org)
