Mary Cummins, Real Estate Appraiser, Real Estate Appraisal, Los Angeles, California, Mary Cummins.

Mary Cummins is a real estate appraiser in Los Angeles, California with 38+ years of experience. Cummins provides real estate appraisals for banks, lenders, mortgage brokers, Appraisal Management Companies (AMCs), lawyers, Courts, factors and private parties for lending, lawsuits, probate, estate planning, divorce and all types of litigation. Cummins provides 1004, 1073, 1025 and other form reports, narrative reports and historical appraisals besides real estate research and appraisal advice.

Showing posts with label appraiser. Show all posts

Thursday, September 18, 2025

Appraisal Institute Meeting Visible Value, Invisible Risk in Industrial & Multifamily by Mary Cummins

Appraisal Institute Northwestern Branch Meeting - Visible Value, Invisible Risk on Industrial & Multifamily. September 18, 2025 at Tamayo's restaurant

Notes from the meeting: Juan Huizar sells income properties in Long Beach, California. Rates are up, loans are due and banks want cash to cover equity positions because asset values are down. Many owners are selling their property instead of refinancing because values are down. Today five plus units must cash flow to get a loan. Banks will still allow four or less to not cash flow. There's been about a 19% loss in value over the last five years in five plus units. Many of those properties were heavily improved and rents increased yet values are still down. Landlords can no longer evict tenants for major repairs. Rent control is limiting income. Some buildings with soft first stories will need seismic work. Many are taking the opportunity to turn those parking spots into ADUs. Tariffs on Chinese imports are causing US companies to use warehouses in Mexico to hold the Chinese imports then ship them to the US from Mexico. Tariffs are hurting manufacturing businesses and related property values.

Speakers: Juan Huizar, Gary Martinez

DESCRIPTION: This presentation explores how capital markets are rethinking the value of industrial properties, not just based on leases and rent rolls, but on hidden risks tied to tenant business models, tariffs, insurance costs, political pressure, and supply chain volatility. Through real-world examples and case studies, Gary Martinez, CCIM, SIOR, shares how today’s market is pricing the unseen, and why understanding these invisible risks is critical to understanding true value in 2025. A surprising 17% of all active multifamily properties are now selling for less than they did five years ago—even though many have undergone renovations, rents have increased, and overall asset performance has improved. In this data-driven presentation, we will unpack what’s driving this market correction and why it's creating a rare window of opportunity for investors and appraisers alike.

Juan Huizar, CCIM

BIO: From the rugged terrain of La Victorina in Zacatecas, Mexico, to the thriving business landscape of Long Beach, California, Juan Huizar's journey epitomizes the resilience and determination that define the American Dream. Raised amidst the challenges of a remote village without modern amenities, Huizar's family embarked on a courageous quest for better opportunities in the United States. Enduring the perils of desert crossings, they settled in the fertile Central Valley, where all 10 members toiled in the fields, picking garlic to make ends meet.

Today, Juan Huizar, a Certified Commercial Investment Member (CCIM), stands as a testament to the power of ambition and hard work. With an ingenious video strategy, Juan has elevated himself from relative obscurity to a nationally recognized figure in the real estate industry. His YouTube channel serves as a beacon of knowledge, attracting a remarkable 48% of his leads and drawing attention from esteemed platforms such as CNN, JP Morgan, and Western Real Estate. The CCIM designation underscores Juan’s mastery in financial analysis, market insights, negotiation tactics, and investment strategies.

As the founder and principal of Sage Real Estate, a premier commercial brokerage headquartered in Long Beach, Juan Huizar is at the forefront of innovation and excellence. His firm boasts the highest ratings in the city and ranks among the top 1.5% of boutique brokerages nationwide. Over the past eight years, Juan has personally brokered transactions totaling over $300 million, a testament to his unwavering commitment to client success and satisfaction.

Gary Martinez, SIOR, CCIM

BIO: Gary Martinez is a hardworking commercial real estate broker with 24 years of experience. He has successfully completed over 2,500 transactions, representing investors ranging from Fortune 100 companies to family-owned operations. His expertise includes investment analysis, maximizing cash flow, enhancing commercial property values, and identifying the right opportunities at the right time. While his primary focus is in Southern California, he has completed transactions nationwide.

Gary holds two of the most prestigious designations in commercial real estate—CCIM and SIOR. He is actively involved in the industry, serving as the current President of the SIOR Inland Empire & Orange County Chapter and a multi-time past President of SoCal CCIM. Additionally, he is a CCIM 102 Instructor, teaching Real Estate Market Analysis, and a board member for Cal State Fullerton’s Real Estate Association.

Beyond commercial real estate, Gary is deeply committed to community service. As the Chairman of the Board for The Whole Child, he played a key role in developing and launching The Whole Child’s Interim Housing Program in Santa Fe Springs. This transformative program provides a structured pathway for families to transition from homelessness to homeownership, reinforcing his dedication to creating lasting, positive change in the community.

A few slides.

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.

Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

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Mary Cummins

Mary Cummins of Cummins Real Estate Services has been in real estate since 1983, over 35 years. She is licensed by the Bureau of Real Estate Appraisers. Mary Cummins was an agent and broker licensed with the California Department of Real Estate selling residential income, commercial buildings, raw land and homes for Merrill Lynch Realty in Beverly Hills and Westside Properties in Los Angeles before concentrating on appraisals. Mary Cummins currently provides real estate appraisals, expert witness testimony, historical research, legal real estate research for mortgage brokers, banks, lawyers, factors, insurance companies, financial consultants and private individuals. Mary Cummins was born and raised in Southern California. Cummins attended Beverly Hills Good Shepherd Catholic School and Beverly Hills High School. Besides being on the Dean's list, Mary Cummins was a top ten national swimmer and competed on the men's water polo team. Mary Cummins began college at the age of 15 attending the University of Southern California on scholarship, majoring in Psychology/Sociology. http://www.animaladvocates.us http://www.facebook.com/AnimalAdvocatesUSA

Tuesday, September 9, 2025

Bureau of Real Estate Appraisers BREA Townhall Meeting September 9, 2025 by Mary Cummins Real Estate Appraiser

I attended the California Bureau of Real Estate Appraisers Town Hall September 9, 2025 online. The main agenda items were as follows: (full agenda below)

*Enhancing Access to Licensure

*California as a Mandatory vs. Non-Mandatory State

*Enforcement Statutes/Regulatory Opportunities

*Enhancing Communication with Stakeholders and Public

First commenters were appraisers. Some were ranting about the profession, economy, costs and difficulty of being an appraiser. Others were looking for supervisors and business opportunities. Some non appraisers commented about personal experiences with appraisers. Some were really far off topic. One guy was just ragging on one appraiser he used years ago. The "beauty" of townhalls.

There were some good commenters, namely appraisers Charles Baker and Jeff Hogan. BREA Chief Angela Jemmott headed the meeting. Shelly of Consumer Affairs was the host. Tinna Morlatt the Deputy Bureau Chief of Enforcement was also there. The panel did not respond to any questions or comments so the meeting was really pointless. It appears it was just to make the public and appraisers feel heard?

There were almost 300 people in the online meeting. It ran from 9:00 am to 11:33 am. #marycummins #realestateappraiser #realestateappraisal #angelajemmott #tinnamorlatt #BREA #bureauofrealestateappraisers

Appraiser extraordinaire Charles Baker

Chief of BREA Angela Jemmott

You can make comments in the survey

Agenda

https://www.brea.ca.gov/pdf/brea_townhall_agenda_9_9_2025.pdf

Full agenda

AGENDA

1. Welcome, Introduction, and Overview of the Purpose

2. Meeting Participation Instructions and Guidelines

3. Enhancing Access to Licensure
a) Strengthening Supervisory pathway
b) Exploring Alternative Pathways
c) Supporting Career Growth

4. California as a Mandatory vs. Non-Mandatory State (disclosure of appraisal fees)
a) Assessing Impacts on the Industry (pros and cons)
b) Sharing Experiences from Both Models c) Prioritizing Valuation Functions for Transitioning to Mandatory

5. Enforcement Statutes/Regulatory Opportunities
a) Enhancing Regulation of Appraisal Management Company (AMCs)
b) Aligning Regulations with Statutory and USPAP Requirements
c) Exploring Enforcement-related Education

6. Enhancing Communication with Stakeholders and Public
a) Improving Existing Communication Tools
b) Exploring Additional Communication Media

7. Comments on Items Not on the Agenda

8. Closing Remarks

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Mary Cummins

Friday, March 28, 2025

HUD Scrubs Divisive Content from HUD Website by Jeremy Bagott, Comments by Mary Cummins

dei, racism, mary cummins, donald trump, andre perry, hud, jeremy bagott, appraisal bias, scott turner, real estate appraiser, real estate appraisal, appraiser, appraisal, los angeles, california

Jeremy Bagott @jbagott posted a new press release titled "HUD Scrubs Toxic Content from Hijacked Portal." ( https://mailchi.mp/40d0c98d36d9/hud-scrubs-toxic-content-from-hijacked-portal-10898622 "HUD SCRUBS TOXIC CONTENT FROM HIJACKED PORTAL:VENTURA, Calif. (March 28, 2025) – A web portal run by the U.S. Department of Housing and Urban Development as a clearinghouse for misinformation and to promote crony business relationships has now been purged of much of its most toxic content. More needs to be done.

The portal, known as the “HUD Exchange,” connected lawyers and crony nonprofits with potential plaintiffs for shakedown lawsuits and to spread divisive conspiracy theories. The portal, which appeared to have been taken over by HUD around the start of the pandemic, was originally operated by a tiny federal agency whose stated mission was to provide resources for wounded, ill and injured service members and their families. HUD somehow wrested control of it. Under Housing Secretary Scott Turner, many malicious web pages have been removed."

HUD has also removed many pages from the HUD.gov website. Most of them were against Donald Trump's new anti DEI policies. The other data and pages removed had to do with anything, everything Joe Biden. I agree that some of the content was not only divisive but false. The worst items had to do with HUD's false narrative of the allegedly old white male racist real estate appraiser. This false narrative was promoted by Biden and the Dems in the hopes of securing votes from blacks, Latinos. Biden stated if elected he would fix the wealth gap by going after allegedly racist appraisers.

The wealth gap is caused by the income gap. The income gap is not caused by race but socioeconomic factors. There are also lower income white people. People of all color, race who make less money have less money and buy less expensive homes in less expensive areas. It's not caused by real estate appraisers appraising their homes for less than what they're worth. A home in Watts is worth less than a home in Beverly Hills. We're just the messengers. We just report value. We don't set it.

One thing that I'm glad was removed, archived was almost every mention of Andre Perry and his fake paper and book "Know your price." AEI and others have debunked Perry's false claim of racial bias in appraisal values many times. AEI spoke at government meetings and sent in independent research. The government would not listen because it didn't fit their agenda to garner black, Latino votes. In the end Biden never fixed the wealth gap. He also didn't get the black, Latino vote and lost the election.

I'm also glad NFHA's false and defamatory articles, lawsuits, PSA's against real estate appraisers were removed. Private nonprofit NFHA took advantage of the false narrative of the alleged white racist appraiser to file frivolous lawsuits. Their purpose was media attention and grants for their board members and CEO. Many people used the false narrative to make money at the expense of real estate appraisers.

Immediately after George Floyd's murder the pendulum swung to the far left in terms of race. People were demanding reparations and forcing companies to hire some harmful DEI "consultants." DEI can be a good thing but some new self proclaimed "consultants" took it was too far and it became anti white, anti male, anti business. There's no more talk of reparations and almost all DEI is in the trash. Now we've swung to the far right with the end of affirmative action and mandatory removal of all DEI. Sadly our country still has issues with racism, misogyny, gender issues... I hope eventually we can end up in the sane middle on these important issues.

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Mary Cummins

Friday, January 24, 2025

End of PAVE, DEI at HUD and How it Will Affect Appraisal Industry by Mary Cummins Real Estate Appraiser

Donald Trump is now the President. Now we find out what will really happen to appraisers, the appraisal industry and the real estate market. In the first week the PAVE Task Force website went down https://pave.hud.gov . Trump also declared that DEI in the federal government is gone. How will this affect us?

The PAVE Task Force released their report March 2022 and nothing really changed. It didn't add any new laws or regulations that we didn't already have. Big deal the website is now down. All PAVE really did was promote the false narrative that all appraisers are allegedly racist, biased old white men that lowball blacks and Latinos. The PAVE Task Force was based on Andre Perry's totally debunked paper "The Devaluation of Assets in Black Neighborhoods" and book "Know Your Price." AEI clearly showed that appraisers don't lowball anyone. People who make less money have less money and buy/own less expensive homes in less expensive areas. Whites make more money than blacks, Latinos for a myriad of socioeconomic reasons. It's not based on race.

Getting rid of DEI at HUD and other Federal Departments will have a greater impact. I hope that HUD doesn't stop the current programs to try to recruit more POC and women to become appraisers. I personally feel we could use more POC and women. It won't change appraisal values or prevent anyone from being lowballed but it's a good thing nonetheless. If DEI ends those programs, I hope private organizations are able to take up the slack. Again, now is not the best time to be entering the appraisal field for any new appraiser. There's barely enough work for existing experienced appraisers. You need a minimum of three years of experience to do appraisals for loans.

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Mary Cummins

Monday, October 28, 2024

Appraising Homes with Solar Power Systems Class AjO by Mary Cummins

I just took the Solar PV: Technology and Valuation class offered for free by AjO Classes and sponsored by CA IOUs (California's Electric Investor Owned Utilities). It was very interesting and I learned a lot. They of course explained everything we should know about inspecting and appraising the value of a solar power systems. Then they went into using the three different approaches to value, i.e. sales comparison, cost and income.

You need a bit of data in order to determine the value. That data isn't always readily available for the comp properties. You can use cost or income approach if there's isn't enough market data in your area. If you give most weight to sales comparison approach, cost and income data are only supportive so ...

In order to calculate the value of a solar power system (not solar thermal for heating water) you need to know if it's owned versus leased, power of the system size in kWh and age. Assume 25 year life. Leased systems add no value. You'll need to collect data such as contract with power size, original price, current price of similar new system and maybe power rates. There are free online calculators available.

I'm pretty sure the solar people got together to try to help educate the agents and appraisers about the value of solar systems in home values. Most don't mention it or include data or value. This upsets sellers and solar companies. They want people to see the value in the systems. I was always taught to do regression analysis to see if there is a market reaction. Issue again is sufficient data.

A few takeaways. You need a bit of data to appraise the value of a solar system. You need to know power, age of solar system of comps. As rates continue to rise the value of solar systems will increase. The cost of new solar systems has come down dramatically. If you depreciate an older system, it will probably be higher than buying new. Use the lower of the two values. People buy homes with solar systems for more than just energy cost savings. I highly recommend the class.

"Appraisers and Realtors will advance their credibility and competency to better serve their clients with solar-powered homes.

Newly constructed homes have been required to have solar as of 2020 and existing home installations remain on an ongoing upward trend.

How much value does solar add?

What is the most essential number we need related to valuation?

While saving money is the primary motive for homeowners to invest in solar, CA building codes and energy policies are key market drivers as goals prioritize decarbonization; all-electric buildings powered by solar.

Attendees will be better equipped to represent solar assets accurately in sales, competently determine value, and be credible guides for buyers and sellers.

Course Highlights

The first question to ask about solar systems

The most important number to obtain related to valuation

How to determine value of solar PV: 3 appraisal approaches

Key points to include in listings and appraisal reports

How utility rates impact purchasing decisions and value

Components of solar systems and what to look for during inspections

Context: CA energy policy

Resilience: Solar plus storage to leverage TOU rates and power through extreme events

Future influencers: Evolving challenges in managing our power grid

Access to free online tools to inform and improve professionalism

Learning Objectives

Answer essential questions regarding the valuation of a solar system

Indentify components of solar systems

Be aware of variations in utility rates and their impact on value

Understand motives and market influencers of homeowner decisions

Determine the value of solar PV systems: 3 appraisal approaches

Accurately represent solar in listings including vital points to inform value

Stakeholder’s shared pool of knowledge to support fair valuations

Target Audience:

Real estate appraisers

Agents

Lenders

Related associates

Learning Level: Intermediate

*Course is designed for those familiar with valuation principles

Continuing Education Credits: 3 hours continuing ed. BREA, DRE, BOE "

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Mary Cummins

Wednesday, October 2, 2024

Chicago Urban League, Chicago Association of Realtors, Preparing for An Appraisal, Comments by Mary Cummins, Real Estate Appraiser

I attended Chicago Urban League, Chicago Association of Realtors Zoom webinar today on Preparing for an Appraisal. Good questions and answers. Below is the summary. My notes, comments below that. I'll post link to video if, when they release it.

"Preparing for An Appraisal.On October 2nd from 7:00-9:00 PM, join the Chicago Urban League's House and Wealth Committee for part one of a three-part virtual series. During the event, you will gain valuable insights into the appraisal process and learn how to advocate for fair valuations.

Learn from top experts in the real estate field on how to prepare for an appraisal and advocate for your property’s value. Whether you’re a Realtor, Realist, or a homeowner, this virtual event is packed with valuable insights.

Moderated by the Chicago Association of Realtors President Elect and Chair of the Chicago Urban League’s Housing and Wealth Committee, Lutalo McGee, our esteemed panelists include,

President Sanina Jones of the Dearborn Realtist Board (DRB),

President Erika Villegas of the Chicago Association of Realtors (CAR) and

Tiffany Jimenez of the National Association of Hispanic Real Estate Professionals (NAHREP) Chicago

Tom Schurer of Real Valuation Services

This 3 part series represents a joint effort of the CUL, CAR, DRB, NAHREP, NHS, RAINBOW PUSH AND NAACP- South Side to empower real estate professionals and consumers about the appraisal process and how best to advocate for home buyers and sellers to ensure they receive a fair valuation based on industry best practices."

Mary Cummins notes and comments on the meeting.

Question: Can I advocate for my value, for what I think it's worth?

Answer: Panelists said yes. Some said you can offer comps, contract. Appraiser said "Nobody knows a home better than the homeowner. It's a matter of pride."

Question: Why do consumers think they can't talk to the appraiser?

The panelists said you can and should talk to the appraiser about your value and what you think it's worth.

I sent in this comment: "Borrower can give comps, contract, list of improvements ....but can't try to influence the value. "1090.5. (a) No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan."

My comment: It's a crime and you will be denied your loan if the appraiser feels you tried to influence their value. Don't say "I need $xxx,000 to get the loan," "the house is easily worth $xxx,000." Feel free to give list of similar homes of the same size, condition which have recently sold in the same area. Don't state a dollar value for fear appraiser may think you are trying to influence.

Question: Can I ask appraiser if they know the area, are competent?

Answer: Yes, but be nice and polite.

Question: Should I communicate with the appraiser in writing or on the phone?

Answer: Put things in writing so it will be included in the work file. Send it to them before the inspection. (My comment. Be polite and factual. Don't try to influence the dollar value).

Roberto Interiano, Lender, then read my comment and others agreed.

Question: Can I order my own appraisal if it doesn't have to do with a loan?

Yes, if you just want to know the value. The bank has to order their own appraiser for their appraisal for a loan.

Question: What should I have ready for the appraisal?

If you are selling, make sure your house is in show ready condition. Have any documents ready for inspection such as the survey, list of improvements.

Question: Should I remove photos from my home?

Answer: Erika Villegas: Yes, remove religious and political items. Remove personal photos because the listing photos could end up on the internet. Remove photos of people because there have been media articles which show some didn't get the "proper value" because of photos of some people.

My comment: All real estate agents tell all sellers to remove personal items, clutter and make sure home is clean and presentable. This is especially important for listing photos, showings. There are a lot of media articles out there about people white/black washing their homes to remove any trace that the owner may be black, Latino... Some articles say the value went up because of, after white/black washing. That is probably not the cause of the value change. It's a false narrative caused by the media, politicians and others.

Lutalo McGee: What about removing personal photos?

Sanina Ellisa Jones: An appraisal is subjective. It's problematic and why appraisals come in lower in our (POC) economy, community. It's because of racism, redlining, discrimination from early 1900's. The maps said risk is equal to blacks. African Americans were marked red, hazardous. It's no longer legal but still subjectivity exists from that practice. Take down religious, political items. I shouldn't have to remove my face because the value could be lower. Homes are devalued based on who lives there. We shouldn't have to do it but we should do it for the value. Values shouldn't be based on photos.

My comment: Appraisers value the home and not the occupants. Home appraisal is a math formula. AVMs use the same formula but appraisers have all the data needed to ascertain value. We generally don't even know race, color of owner, borrower or of the comp homes that sold, are listed. It's a false narrative. That said I agree that you should remove personal items, photos, religious, political items for the listing photos, showings. Buyers want to imagine themselves in the home and not you. They want a blank slate. Homes look bigger without clutter. There are many articles about this online. Appraisers blur all photos that include people, religious items, political items, things such as gun collections, "personal" items... Even if you don't remove your photos, items, we will blur them.

Her definition of redlining is also incorrect. 70% property in HOLC map area D or red were owned by white people. While blacks, Latinos ... lived there whites owned most of the property. Whites were the main ones who had to pay higher interest rates to get the loans. Race wasn't included in all maps. Race was one of many, many factors included in the maps. We use all those same factors today except race. The factors i.e. property age, condition, value, predicted depreciation, income of residents, location near hazardous sites, freeways...are still used today. If you removed race from those maps, they were still just as accurate for risk. Race had NOTHING TO DO with the value or risk. 1935 HOLC program brought lots of money to those areas. Before this there were no loans or they were small and super expensive. Most areas in D zones are now totally refurbished and many are affluent areas. The HOLC program money actually helped. There is a lot of research which proves this but everyone likes to repeat the false stories. I remember when I first heard about redlining around 1983. I also believed that false shit until I did some research and educated myself. Here's an article I wrote about redlining citing the research.
https://mary--cummins.blogspot.com/2021/05/redlining-in-home-loan-financing-mary.html

Lutalo: Should people put an appraisal pkg together?

Sanina: The listing agent advocates for the home value. Have a CMA, floor plan, survey, size, neighborhood details, upgrades, remodel, energy features to show appraiser how listing agent determined the list price.

My comment: The listing agent should already have a property package. Appraisers are open to receiving data. A list of similar sold, listed comparables is good. List of improvements, floor plan if available, survey, energy features... A list of maintenance items is fine but appraisers assume properties are maintained. Maintaining your property doesn't give you extra value.

Appraiser Tom Schurer: Tell the appraiser if there are multiple offers. Let the appraiser know what's happening in the community, developments.

Lutalo McGee: What about new rehabs in area where there aren't any new rehabs sold.

Schurer: You make time adjustments on closed sales, use pending sales.

Lutalo: What do appraisers look at when determining value? What should homeowners do to their homes to prepare?

Schurer: Paint it. It gives a good clean feel. Kitchen, baths drive home values, school district, neighborhood. Nice curb appeal.

My comment: If your home desperately needs a paint job, do it. Just don't expect 100% return on investment. Appraisers look mainly at location, size, bed/bath count, kitchen/bath condition in that order. Don't add a new kitchen/bath for an appraisal. You won't get 100% return on investment in terms of value. It's good to do it anyway if most homes have renovated kitchens, baths and you can enjoy it while you live there.

Question: What if appraiser asks for Tidewater?

Answer: Schurer: It means the appraiser needs help. They can't get value needed. They ask agent for help. Reconsideration Of Value ROV process. The new program looks good. Should be done by end of October and we can talk about it.

My comment: Tidewater: If the VA appraiser believes that the actual home value will be lower than the listing price, they will invoke tidewater. This is simply a heads up that gives the listing agent 48 hours to support the listing price. The agent will then provide similar sold comparables which support the list or contract price. I've found most of the time someone enlists Tidewater, contract/list price was over market value.

Question: How do we navigate AI.

Answer: Schurer: AI will change our world and real estate. RE is a people business. We laughed at early AVM like Zillow. It's real good these days. My future will be reconciling data sets, not giving opinion of value. I will just say why a dataset is wrong for the value of a home (how would he know if he didn't appraise it?) We will still need our smart human brains. Play along. Don't be afraid.

My comment: AI, AVMs are only as good as the data they have. GIGO, Garbage In Garbage Out. AVMs only work with newer, median size, median priced homes in average to good C3 condition. They don't work on older custom homes in fair/vastly improved condition with no view/views on irregular lots... We will still need appraisers for those types of homes.

CEO Urban League Karen Freeman Wilson: We need to know historical context, how the past affects the present. We need to know how to eliminate barriers to home ownership.

My comment: Totally agree.

The next webinar in the series will be with appraiser Chris Posey. Posey will teach us how to read an appraisal report and spot red flags. My coment: Chris Posey is very experienced and knowledgeable. He'll be giving great advice.

Saturday, September 28, 2024

Racist Los Angeles Planning Report - "Historical Housing and Land Use Study" written by Architectural Resources Group, comments by Mary Cummins Real Estate Appraiser

mary cummins, real estate appraiser, real estate appraisal, los angeles, california, planning, zoning, architectural resources group, katie horak, elysha paluszek, morgan quirk, racist, racism, historical housing land use study

I just started reading the land use report "City of Los Angeles Historical Housing and Land Use Study" written by Architectural Resources Group, Inc., Katie E. Horak, Elysha Paluszek and Morgan Quirk which was paid for by the Los Angeles City Planning. This "report" is not only racist but it makes clear the authors don't understand real estate and basic economics. Yes, racism exists. Yes, the world, US and LA have a racist past and still deal with racism today. That doesn't mean income and wealth disparities today in LA are caused by and can be fixed by the current actions of Los Angeles City Planning and Zoning Dept. I now see why the city was reluctant to share this ridiculous report linked below. I also see why it took so long for ARG which is controlled by a 100% white leadership corporation to finish and release the report. Even they knew the report written by lower level writers was too extreme. They should have stuck to the facts instead of adding the slanted racist commentary.

https://planning.lacity.gov/odocument/3eaaa5ce-d96c-4325-a1b8-557218bbd0f5/Historic_Housing_and_Land_Use_Study.pdf

This was the alleged goal of the report. "Architectural Resources Group (ARG) was retained by the City of Los Angeles to prepare this Study as part of the update to the 2021-2029 Housing Element of the General Plan (The Plan to House LA)." "The Study aims to provide an understanding of the twentieth century policies that have contributed to Los Angeles’ housing shortage and affordability crisis, as well as those which have contributed to unequal access to housing and economic opportunity. In providing a context for the current housing landscape, the Study will help inform future efforts by the City as it seeks to provide housing for Los Angeles’ diverse and varied population."

It looks like ARG made this report starting around 2022 after George Floyd's 2020 murder during the height of the more extreme BLM, DEI actions. I support BLM, DEI but the initial reaction after Floyd's murder was an extreme pendulum swing. It corrected and now there's a backlash in the opposite direction which is also wrong but expected. This misguided "report" blames current racial income and wealth inequality on the current allegedly "racist" Los Angeles City Planning and Zoning Department. Let me provide some much needed facts.

Whites make more money than blacks, Latinos. People who make more money have more money. People who have more money can afford to buy and own more expensive homes, apartments in more expensive areas. They also have more expensive cars. This is the reason why whites tend to live in more expensive areas and their homes are worth more. It's the income gap, stupid! Low income whites live in the same area as low income blacks, Latinos. AEI research has proven time and time again that the correlation is socioeconomic factors and not race. It's money. No Planning Department can fix the income gap. It's not their jurisdiction. No one today is preventing blacks, Latinos from living in more expensive areas of LA. Economics is preventing them from being able to afford to live in those areas. Fix the income gap!

This report blames LA City Planning and Zoning department for blacks, Latinos not being able to own and live in more expensive homes in more expensive areas today. "This analysis shows that past planning and housing policies have too often prioritized the concerns of the White middle class over the marginalized, denying communities of color access to resources and excluding them from wealth-building opportunities. Exclusionary policies of the past persist today, perpetuating patterns of segregation, displacement, inequity, and exclusion." Today the cause is income inequality which isn't caused by the Planning Dept. Anyone can now buy any house, rent any apartmentn they can afford. This would be like blaming the Department of Motor Vehicles DMV because whites own more expensive cars than blacks, Latinos. The report writers would call the DMV racist.

Reading through this report I see that it's riddled with illogical reasoning. The report says that people who live in nice homes in nice areas are more successful than those who don't and it's not fair to POC. They think if low income POC could just live in those areas, they'd automatically be successful. Wrong. You have to be successful in order to make enough money to afford to live in those areas! It says this is the fault of the Planning Dept. It's economics! It affects all lower income people equally, white, black, green. You need to complain to the labor dept not Planning. This is not a peer reviewed report. It is not published research. It would never be published with all these statistical mistakes and misinterpretations.

The real reason for the Housing Crisis today is lack of a sufficient number of housing units in Los Angeles and most US cities. Another reason is of course all incomes lagging behind home values. Lack of supply drives up demand and prices. The price of homes is up 46% in last five years alone for this reason. The problem is more people living in an area which is predominantly zoned single family. It's also caused by more expensive California building requirements, increased construction costs, more development red tape, higher interest rates and NIMBYs (Not In My Back Yard). Higher housing costs also increases land costs which increases building costs.

I know that if the city of Los Angeles would allow light touch density, i.e. allow 1-4 units in SFR zones, the housing issue would be much closer to being solved. There would be more housing units which would cost less. As it is you have two to four families living in SFRs, duplexes in lower income areas illegally against zoning, Building & Safety laws. They cut up the buildings, convert garages, add additions without permits. NIMBYs are the reason we don't have light touch density. If you want to blame someone for blacks, Latinos, lower income people of all races, colors not being able to afford housing, blame NIMBYs and the income gap. It'd make more sense than blaming the LA Planning and Zoning Department. The report of course says the only goal of Zoning Dept was, is to help only white people and segregate black people into poor areas. This is false. There was never a black, Latino...zone. There were some private CC&Rs which restricted where blacks and some others could live in certain neighborhoods pre 1945. Those were made by the property owners and not the Planning Dept. In 1945 in LA the Adams Heights, Sugar Hill case outlawed those restrictions. The 1963 California Rumford Act also outlawed any restrictions. The Federal Fair Housing Act of 1968 made it national. People today live in different areas based on finances alone.

I read the intro, beginning, findings, conclusion and will read the rest later. I'm sure these people misconstrued redlining and other issues. Check back for the full report after I read it all. This report was a waste of city funds. It will just incite racism, hatred and division. AI, Google will now pick it up and repeat this bullshit as fact further stoking racism and hatred. No one should ever hire this group if they can't make sure their lower level employees can complete an assignment in a fair, unbiased, unracist manner.

Just looked at the "definition" of "redlining" in the report. "Redlining: a discriminatory practice that puts services (financial services, i.e. loans, or otherwise) out of reach for residents of certain areas based on race or ethnicity. The term “redlining” originated in the 1930s, when a government-sponsored corporation (the Home Owners’ Loan Corporation, or HOLC) assessed and categorized neighborhoods occupied by ethnic groups and people of color as “declining” or “hazardous” and therefore viewed them as investment risks; the policy discouraged investment in these neighborhoods, the legacy of which is felt to this day."

This is incorrect besides totally racist. This is what "redling" actually was. HOLC made maps of a few cities in the US in 1935 to determine loan risk so the government could loan the property owners money to improve the areas. They made maps for 239 cities out of 108,000 cities or .2%. Most of those maps never mentioned race. They mentioned % tenants, income of occupants, age of properties, values of properties, condition of properties, value forecasts...all risks factors we still use today. Some maps mentioned race. It varied based on who was doing the survey. Some high risk "red" zones had POC and some were all white occupants. The real correlation was income, condition/value of properties and not color, race. Again, lower income people live in areas that cost less because they are more likely to be older and in fairer condition near freeways, industrial property... Race was removed from the map surveys. It didn't change the risk rating at all. All the other factors are still used today.

Map areas were rated A, B, C, D with D being the riskiest for loan repayment. Some called the D zone the "red zone" because loans cost more because they were riskier because assets were worth less and were depreciating. We still charge people more for riskier loans today. Loans were given to the property owners and not the occupants or residents. Some D zones had more blacks, Latino residents because they were lower income and these areas are cheaper to rent, own. 80% of the D zone property was owned by white people. White people were the ones who got loans with higher interest rates in the "red" zones not POC. They still got loans, more loans than before the program. It was never "black residents = red zone = no loans for black people." The government programs actually brought a lot of money to all of the areas so they could improve their property or buy more property. There were no affordable loans prior to this. You mainly had to pay cash. Many old red zones are extremely affluent areas today like San Francisco, New York and Los Angeles. Research has proven it did not have a long term negative affect on those areas today. The entire report is riddled with this type of misinformation and lack of understanding. It's like the authors asked AI for summary of redlining but asked AI to make sure it was racist.

FTR I'm a Latina born and raised in Los Angeles and speak Spanish, English. I see racism every day in LA. I've been in real estate over 40 years. I specialize in single and multifamily properties in lower income areas of Los Angeles. I've appraised Section 8, low income housing projects, property in high risk areas. I'm 100% for fair housing and against racism. I know a thing or two about this issue. I'm the first to call out and fight true racism. There is so much real racism that it's ridiculous to waste time, energy and money stoking nonexistent racism against the Planning Dept and City. They should be working on the income gap. Huge waste of city funds to pay for this report.

I just sent an email to the leaders of the Planning Department.

I'm a Latina real estate appraiser, broker in Los Angeles. I've appraised real estate in LA in lower income areas for over 40 years. I've written about LA real estate for decades. I'm also involved in LA politics being nominated to the Prop F Committee by Mayor Garcetti.

I just read most of the LA Historical Housing and Land Use Study. I was upset by this inaccurate report so I wrote an article about it linked below. The authors of the "study" clearly don't understand the basics of economics or income inequality. This should have been peer reviewed before being published. People will now assume this is a true research study because the city paid for and sanctioned it.

The authors don't even understand the full history or implications of "redlining." There has been lots of peer reviewed and published research about the implications and long term effects of redlining. The authors presented a one sided view of the HOLC maps and loan program.

The worst part of this report is that it basically calls the current LA City Zoning and Planning Department racist. The authors believe that the Planning Dept can solve income and wealth inequality when the causes are under the jurisdiction of the labor department. It's as ridiculous as blaming the DMV because most white people can afford to own more expensive cars than most POC, Latinos. It's basic economics. The government needs to work on the income gap. FTR I'm Latina.

Yes, we do have racism and a housing crisis but it's not caused by past redlining. Light touch zoning, easing development red tape, reducing some building overregulation and overruling NIMBYs would make a big difference.

https://mary--cummins.blogspot.com/2024/09/racist-los-angeles-planning-report.html

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Mary Cummins

Saturday, September 7, 2024

Mandatory Cultural Competency Elimination of Bias Class for Real Estate Appraisers by Mary Cummins

I completed my California real estate appraisal continuing education "3-hour Cultural Competency and Elimination of Bias in Appraisals" class last month. While I agree all humans have implicit bias I don't believe that many, most or all appraisers act on it. Appraising is a math formula. 2+2=4. You could be the most evil racist unhinged person on earth and 2+2=4. 2+2 ≠ 3 or 5. You would have to intentionally work extremely hard to contort hard data and a basic math formula. The review robots, AMC, Lender would catch your error and reject your report before a client saw it. And for what? To lose your license, career, go broke, get sued, have all your colleagues and everyone else despise your racist behind...?

I was upset to see the course falsely promote some of the false cases in the media about bias as fact. The cases were mainly the false Maryland and Florida cases which I covered in this blog. There was no lowballing at all. I also didn't like being forced to view racist propaganda videos. One included known "research" fraud Andre Perry and his fake paper. It's a fact that whites make more money than blacks, Latinos. If you make more money, you have more money and you're more likely to buy a more expensive home in a more expensive area. That's why white owned homes are worth more than black, Latino. No one lowballed the appraisals. Those appraisals were done by robots, AVMs and not appraisers.

The class even promoted the hugely misinterpreted Fannie Mae anecdotal data on race, contract price and appraisal values as true. AEI debunked it with research. There are more concessions in lower priced areas which are more likely to be black, Latino because of lower income, wealth. This is why appraisal values are lower than contract price in those areas. This means blacks, Latinos were paying over market value because they were conned by real estate agents. They should have made up fake case studies as examples without using color, race and real cases that have not been settled on the merits. Using these frivolous cases was actually bias and racism.

The class also included false information on the term "redlining." I wrote an article about redlining here with facts and dates. The class itself was biased, racist and promoted false narratives about appraisers and the appraisal industry. It could have easily explained bias in a more neutral manner without involving specific people, races, colors, lawsuits and organizations. I'm assuming promoting the false narrative is the only way the courses would be approved by the powers that be. So ironic that the government deals with the issue of bias, racism, and discrimination by actually being biased, racist and discriminatory. There's enough real bias, racism and discrimination in this country that we need to fight. Ridiculous to waste time, energy and money fighting nonexistent racism. I believe the government does this so people won't look at the real cause of income inequality and the wealth gap among white, black and Latinos. It's easier to blame appraisers than to fix the income gap.

Home appraisal is a math formula. Robots, AVMs can do a home appraisal of an average home if they had all the data which they don't. That's how exact the math formula can be. In fact I pull my comps based on math formula alone which I've posted here a million times. I then type those comps into a form. I choose adjustments based on more match i.e. matched pairs analysis and regression theory. My software then adds/subtracts the adjustments and that's the value. I don't control the value.

Some may say why not just use robots and AVMs. The problem is they don't see or inspect the property. They don't have all the data. GIGO, garbage in garbage out. They don't know if it exists, actual size, permitted number of bedrooms, condition, upgrades, actual age, view type, topography, lot type, home style.... They only know what's on the tax roll which isn't always accurate. Some like Zillow also include MLS data which is generally incorrect. Most MLS sizes, bed counts are larger than actual. Zillow and others also let the public edit the data which makes it even more inaccurate. Zillow also doesn't do a proper comp search or adjustments. If Zillow can't find similar recent comps, it goes so wide that it's in a totally different neighborhood which could be worth twice as much. In fact most of the false media cases about lowballing fell into that category. Zillow is probably the reason appraisers were frivolously sued for bias, racial discrimination and alleged lowballing.

Appraisers use numbers, facts and data. We're aren't interpreting the finer possible meaning of ancient translated words in poetry or the Constitution. There is no interpretation. It's basic math! You'd have to work harder than Justices Samuel Alito or Clarence Thomas when they twist, contort and misinterpret the words of the 1788 Constitution. There is no room to twist number of square feet, number of bedrooms, number of garages, location, recent local sales... Facts are facts.

This class is now mandatory because of recent regulatory changes caused by the false narrative of the "racist appraisers." So far no lawsuit has shown or proven any bias, racism or discrimination in appraisals. "Those applying for appraisal license renewal in California must complete at least one hour of Cultural Competency and two hours of Elimination of Bias, which can be combined into a single three-hour course. These changes to the education requirements are key components of California Assembly Bill 948."

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Mary Cummins

Friday, August 23, 2024

RealPage YieldStar Sued by Justice Department for Alleged "Price Fixing" - Doesn't Really Make Sense, by Mary Cummins

RealPage was sued by the Department of Justice for alleged "price fixing" of apartment rents. DOJ stated RealPage was "attempting to illegally decrease pricing competition between landlords and deprive renters the benefits of that competition." I find it hard to believe that a rental database is "price fixing." What about Zillow, MLS, stock market, Kelly Blue Book...? They all show list and sales prices which people use to set prices for similar goods. An an appraiser I do sales and rental analysis all the time with MLS, CoreLogic, Realty, Google... data. Is that price fixing? People hire me to find out what the market rate sales price or rent is for their home or apartment. Am I a "price fixer?"

RealPage offers a host of software and services to help property managers. One of those services is a software called YieldStar. YieldStar uses rental data from software users and more to suggest list rent prices for apartment building owners. Apartment owners have been using rental data to set prices since the beginning of time. Sometimes the rental prices are public and sometimes you have to do some research to find out the list and sales rent. Back in the day we had to get on the phone and call people. Some do the research and sell the reports. In this case property owners were submitting their own rents anonymously into the database. They don't want to do it publicly because then tenants could see their bottom rent, max rent concessions and only offer to pay rock bottom rent. Car dealerships do the same. Do we even know if they were inputting real rental rates? Doubt it was verified. RealPage said managers only used the data half of the time. Only 10% of some markets use their software. You would need 70% of apartment managers using the data and recommendations to affect the market. Here at most you had 5% considering market rate rent based on the data. They were given market rent data and not an inflated agreed upon value by all apartment building owners. That's the big difference here.

The real issue is rents have risen and it's an election year. Rents correlate directly with home prices which have risen at the same exact rate. The underlying cause is people aren't making enough money to pay the rent because wages are stagnant and there are not enough housing units. They need to help people make more money and build more units. Because it's an election year one party has to instead blame the government's problem on private individuals and businesses. "Vote for me and I'll lower your rent by suing a data company!" Getting rid of RealPage won't lower the rent. They never want to fix the real problem because it's too big and complex.

The last election cycle Joe Biden said blacks and Latinos were being lowballed by "old white racist male" appraisers devaluing their homes. We appraisers were the scapegoat for blacks, Latinos not having as much money as whites and owning less valuable homes. Biden said if elected he'd make sweeping changes with appraisers to increase property values. He didn't change anything but increase government meetings and paperwork. Again the real problem is income. In this situation whites make more than blacks, Latinos. If you make more money you have more money and can afford to buy a more expensive home in a more expensive area. Appraisers report values. We don't set them. Guess what? Whites also own more expensive cars than blacks, Latinos. Are real estate appraisers to blame for that also?

I will try to find the lawsuits and read them closely to see if there was any real "price fixing." The timing right before the election with Kamala Harris talking about high rents and "price gougers" makes me think this is just an election year issue. I'm just glad it's not another made up problem with appraisers. We've been through enough with the false lowball narrative smeared all over the media and internet.

https://www.yahoo.com/news/justice-department-suing-realpage-over-163534773.html

This article goes more into the specifics of the lawsuit. It still doesn't make sense. What about Kelly Blue Book algorithm for car values? They suggest market rate values for cars. It's based on car sales and listings. This is feeling like election year politics. It reminds me of the DOJ, HUD getting involved in a private alleged real estate bias lawsuit in Marin, California. DOJ filed a Statement of Interest in a fake racial discrimination case in appraisal values. It was 100% political so the government can say "see, we're doing something. Vote for us!"

https://natlawreview.com/article/justice-department-sues-software-maker-realpage-enabling-rent-collusion

Below are CoreLogic and Zillow rent reports on a property. Will they and MLS be sued next? I assume the value is being pulled from MLS and Zillow rental database. Apartments.com also shows rental prices for various areas. There are so many rental databases offering suggested rents. Maybe RealPage should have made the rental database non anonymous. It could just be based on general area and not specific building addresses.

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Mary Cummins

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

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