Sellers, Buyers set home values NOT Appraisers - by Mary Cummins Real Estate Appraiser

Sellers, Buyers set Property Values NOT Real Estate Appraisers, Mary Cummins, Los Angeles, California, real estate appraiser, real estate appraisal

UPDATE: I tweeted my article to Andre Perry. After he made a few ridiculous replies which only showed how much he doesn't know about appraisers and appraising he blocked me. Thank god I just swallowed my sip of iced tea or I would have spit it all over my computer monitor laughing :-D This guy can dish out bad statistics, bullshit and racism but can't take simple facts. 

FTR Andre Perry has stated many times that Appraisers are racist and biased. Here are some quotes. He stated this as a fact when it's not. From written testimony from U.S. House of Representatives Committee on Financial Services. "And we’ve witnessed viral news stories revealing how appraisers value Black and white homeowners differently." He's one of the main people spreading those false media articles about alleged bias which I researched and about which I wrote articles. 

"We don't want to lay the complete blame on the loss of home values on appraisers," said Perry. "They are certainly an important trigger but the same attitudes that appraisers have, so do [some] lenders, real estate agents and other people in various markets." Many more citations below.

Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race

Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race

Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race

In the intro of his book Andre admits to having anger management issues with people with whom he disagrees. He said he "verbally assaults" people. He stated "My life "which has been beleaguered with unpredictable outbreaks of rage, largely stemming from reminders of past feelings of vulnerability and worthlessness. Minor disagreements with lovers, friends, colleagues, and strangers often turned into blowout arguments, for reasons unknown to them." The intro of his book also shows that his main focus in life seems to be that white people have done him and black people very wrong basically destroying everyone's lives, family and specifically their money. He stated his father died in prison and his mother abandoned him and his brothers with the local baby sitter. It does sound like a tough life that has affected his view of life and others. He stated his goal in life is to show that the main problem in this world is white people. Read the intro to his book and come to his own conclusion. The intro is online and free. 

ORIGINAL: Everyone knows the "fair market value (of a house) is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts." This is the basis of our world economy and free market society. Everyone agrees with this except hate monger Andre Perry who blames lower property values on "racist white appraisers." 

Andre Perry just wrote another crazy article about racism and real estate. Someone needs to contact the editor at the Brookings Institute about allowing flawed statistics, misleading research and the promotion of racist hate mongering in their name. 

Andre Perry has never let facts and data stand in the way between reality and the racist narrative he's created and actively promotes. He believes everyone in the US is responsible for home values in areas which are mainly "black," i.e. over 50% black per his own criteria, being lower than areas that are mainly "white," i.e. 1% or less "black." He actually only compared a few extremely different areas. This article proves that Perry's paper is based on extremely misleading data selection and biased comparisons which were then used to invent a false and misleading racist narrative. Note that his paper has never been peer reviewed or published in a journal article. It would never pass peer review. A "refereed (peer-reviewed) journal is reviewed by expert reviewers as a quality-control measure." I just checked Perry's resume and he has no peer reviewed articles or papers on his false racism in appraising theory.

In the article Andre Perry wrote "Lower home prices in Black neighborhoods reflect how much we value their residents." Nope. Home prices reflect the price agreed upon by a willing seller and buyer. It has nothing to do with the value of residents. The Appraiser also has nothing to do with the home price or value. A seller could sell his home for $100,000. If the buyer pays cash, there's no appraiser or appraisal. Seller and buyer set the price which is later publicly shared by Zillow, RedFn and MLS. Those sales set the market price for similar homes. Seller and buyer alone control that price and value

Now if the buyer wants a home loan, he'll probably need a real estate appraisal. The purpose of the appraisal is so the bank knows there's enough equity in the home to pay off the loan in case the borrower defaults on the loan. I could appraise that home for $10,000,000,000,000,000,000,000,000,000,000,000,000 and the sale price stays the exact same at $100,000. The home still sells for $100,000. THE APPRAISER AND APPRAISAL DON'T AFFECT THE PRICE OR VALUE! This proves that Andre Perry does not understand the concepts of value, price, real estate, economic principles, basic math...or common sense. His "paper" includes almost every single major statistical error possible. Why does anyone believe this guy or that meaningless paper? It has less merit than an op-ed.

If Perry wants to blame someone for lower home values in some black areas he needs to blame the buyers of those homes which are mainly black per his "research." He should tell those greedy (sarcasm) buyers to pay $1,000,000 for that $100,000 home if they "value their residents." "Don't be a cheap bastard! Pay the seller more than what that home is worth! Do it for the good of the community!" (sarcasm) You sell a few homes for $1,000,000, they're all worth $1,000,000, right? Sadly, no.

FTR I attended the 2019 meeting Perry mentioned in his article. That was the first time I encountered Andre Perry and his lack of real estate, economics or statistics knowledge. 

From Perry's article. Notice he speaks about himself in the third person. Who does that? He doesn't even know that the Appraisal Institute is just a private org that doesn't certify or regulate the appraisal profession. I added what is in parenthesis.

"In 2019, one of this blog’s authors (Andre Perry) testified in Congress along with representatives from the Appraisal Institute and the Appraisal Foundation, two organizations that help certify and regulate appraisal professionals. When Rep. Al Green of Texas asked the panel to raise our hand if we believe “discrimination plays a role in the devaluation of property in neighborhoods that are predominated with minorities,” I was the only one who raised a hand."

I decided to go find this video to refresh my memory as I was working while listening, watching the original hearing. Andre Perry is a liar. See the video below. The guy directly behind him also raised his hand so 2/26 people. He was not the only one. Perry also lied about the question. This is the real question, "Do you believe that invidious discrimination, invidious is harmful, (full definition: Treating a class of persons unequally in a manner that is malicious, hostile, or damaging; unfairly, unjustly discriminating) plays a role in the devaluation of property in neighborhoods that are predominated with minorities but more specifically black people? If you do believe this, raise your hand. If you think black people are being discriminated when their property is being appraised, would you kindly raise your hand." Andre Perry raised his hand. This shows he is specifically talking about appraisers appraising properties and not AVMs here. AVMs are not appraisals. This is why Appraisers are upset. He accused us of invidious discrimination besides bringing up and widely sharing anecdotal media articles about alleged discrimination by appraisers. 

All the real estate experts with many years of experience and multiple degrees in real estate did not and do not agree with Andre Perry. This shows that Perry does not know what he's talking about. I also would not have raised my hand. The property in question is not, was not devalued. There is no discrimination in property valuation because it's based on a math formula. Most Appraisers never see the buyer, seller or know their race. It's just an address to us. The robot appraisals don't see anyone or anything, not even the property. Andre Perry's paper is based on robot appraisals and prices agreed upon by sellers and buyers. Appraisers had nothing to do with the data he used. I'm not saying racism doesn't exist. It does. It's just not an influence in real estate appraisal especially robot real estate valuations like Zillow.

Perry states that homes in black areas are worth $48,000 less than in "similar" white areas. Then what explains the differences among the values in white areas? It can't be discrimination against black people because they're white. Same thing happens in brown areas. What explains the lower value of a white owned home in a black area? Again, the owner is white and not black. Will all the white and brown people with lower home valued be compensated by any new government initiatives or reparations for low valued homes? Perry has been talking about using his $48,000 figure as a measure of reparations for black people. What about the rest of us suffering from low priced homes? I don't even own a home. Will all people who don't own homes, even homeless people also be getting a check? 

In the article Perry talks about the Indiana and Florida media articles about alleged racism in real estate appraisals. Recently he said those were just media articles and we don't know if it was racism or not. He even said recently he's never said appraisers were racist and he doesn't feel they are. Now he's back to promoting the idea of racist appraisers again! This guy will say whatever the audience in front of him wants to hear. He doesn't even know his own truth. He's that insecure.

His recent article is about the "Brookings and Ashoka Collaborative Innovation Challenge." They're offering money which he will most likely reward to a like minded friend who promotes his racism. Stuart Yasgur the VP & Global Leadership Group Member represents Ashoka #stuartyasgur . The prize is supposed to go to the person who solves the problem of homes in specific black areas being worth less than homes in specific white areas. I may send in a solution to the problem. My solution is that the problem as defined by Andre Perry doesn't exist. He created it. I solved it. Poof, it's gone. Where's my check?

#andreperryedu #stuartyasgur #brookingsinstitute #ashoka #racism #hatemonger #marycummins #realestateappraiser #realestateappraisal #brookings #race #bias #appraisal

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.

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Racial Bias in Real Estate - Is it the Appraiser's Fault? by Maureen Sweeney

Racial Bias in Real Estate—Is It the Appraiser's Fault? by Maureen Sweeney, SRA, AI-RSS

In the past year, appraisers have been under attack for "racial bias" when providing appraisal services to lenders for home mortgages. Let's take a closer look. A licensed real estate appraiser is expected to perform valuation services competently and in a manner that is independent, impartial and objective. Like doctors in the medical, dental, and veterinary fields, real property appraisers are licensed by the individual states where they practice. Real property appraisers are also regulated by the federal government as a result of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), enacted in 1989 in response to the savings and loan crisis of the late 1980s. Appraisers who develop appraisal reports for federally related transactions must be licensed. An example of a federally related transaction is a home mortgage. If a real property appraiser violates professional standards or the rules and laws governing their license, they can be fined, as well as having their license suspended or revoked. Appraisers collect the data, verify the data from reliable sources, analyze the data, and accurately report the conclusions. If real property appraisers neglect to do this, we can be fined, disciplined, lose our license or go to jail. In the 32 years since Congress charged the appraisal profession with protecting the public trust, I know of no discipline against an individual appraiser that was based solely on racial bias. If appraisal assignment results were based on any bias, including gender, sex, sexual orientation, race, age, mental or physical impairment, or any other protected population, the appraiser who developed that report would be in violation of national and state fair housing laws, appraiser licensing laws, and the clear standards of valuation practice. That appraiser should and must be subjected to peer review and regulatory oversight—and suffer the disciplinary consequences. Licensed appraisers must follow the law, which includes not performing an assignment with bias. Bias is defined as "a preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment." If an appraiser has bias towards socioeconomic status, race, religion, nationality, gender, sex, age, weight, mental or physical disorders or disabilities, or anything else, the appraiser must withdraw from the assignment. If real property appraisers neglect to do this, we can be fined, disciplined, lose our license, or go to jail. Appraiser's Job The appraiser is central to the checks and balances in the home lending system. The appraiser is hired by the lender to ensure that there is adequate value in the property being used as collateral by the lender to provide funds to the borrower. The licensed broker/agent negotiates the price of the property, but they are not qualified or licensed to estimate the value. Providing valuation services is the job of the appraisal professional. The appraisal professional provides checks and balances in the housing system, as the appraiser has no financial interest in the amount or success of the transaction. Appraisers reflect the market; we do not create it. This may cause some to get angry, especially when their commission is at stake or a homeowner cannot get a home equity loan to update their kitchen or repair the roof. The lender may have reasons to reject a mortgage application that have nothing to do with the appraised value of the property. The borrower may not qualify for the loan, they may have a low credit score, or they have a job that does not pay enough to cover the loan. Because the appraiser is typically the only party in the mortgage process who meets the homeowner in person, the appraiser may become the sole target of the homeowner's disappointment, even if the reason for rejection of a loan has nothing to do with the market value of the property. The Critics In their research article Neighborhoods, Race, and the Twenty-first-century Housing Appraisal Industry, two academics making bias claims against appraisers, Dr. Junia Howell and Dr. Elizabeth Korver-Glenn, identify that "all appraisers complied with a uniform definition of market value that specified that appraisal values should be 'the most probable price' in an open and fair sale." A fair sale means that buyer and seller are each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Howell and Korver-Glenn use "predicted values" to validate their findings. Predicted values are constructed by assigning a chosen value to each explanatory variable in their study. They conclude a predicted value of $479,000 for properties located in neighborhoods where there are higher quality public schools, lower crime rates, more accessibility to public parks, and more convenient to public transportation and employment. Properties located in neighborhoods that have poor or no public schools, high crime rates, no access to public parks, no access to public transportation, and limited employment options or opportunities had concluded predicted values of $58,000 and $65,000.

According to their data, buyers pay more to live in one neighborhood than another. Howell and Korver-Glenn showed through their data and the use of predicted values that the most probable price in an open and fair sale is more for properties in locations that have greater neighborhood amenities and less for properties in locations that have limited neighborhood amenities. As an appraiser, I agree with this conclusion and so does the open market. In their 2018 report, The Devaluation of Assets in Black Neighborhoods, The Case of Residential Properties, authors Andre Perry, Jonathan Rothwell and David Harshbarger also claim racial inequities within the housing market. This study also uses market value. It examines components of neighborhoods and locations including access to schools, the quality of the schools, access to businesses, including stores, restaurants, and other goods and service providers, walkability, crime, income mobility, household income, and educational attainment. This study uses regression analysis to predict home values. They found that violent crime predicts significantly lower property values. They also found that school quality, the number of gas stations, and access to public transportation affect value. In areas where school performance is weaker, commute times are longer and access to business amenities is more limited, the value of housing is less than in locations that have high performing schools, short commute times, and ample access to businesses. I agree with this conclusion also, and so does the open market. In their study Howell and Korver-Glenn investigate whether racial inequality persists in the contemporary appraisal industry and, if present, how it happens. Howell and Korver-Glenn's search criteria was single family houses in various census tracts areas in Harris County, TX in 2015. They use the terms value and price interchangeably and conclude that the market value ("the most probable selling price") in one area with better schools and less crime has higher value than properties in another area with poor performing schools and greater crime. However, the Howell-Korver-Glenn report as well as Perry-Rothwell-Harshbarger conclude this was based on race, and it was the fault of the appraiser, rather than the result of the open market. They ignored their own data and conclusions on the market value, which reflect the decisions and behaviors of knowledgeable buyers and sellers who are typically motivated, well informed, or well advised, and acting in their own best interests. Their conclusions mirror the conclusions of the various appraisers they studied: the likely selling price would be less in one location than in another. Like the results of these various studies, appraisers reflect the market—we do not create it. It is my hope that researchers, journalists, government officials, and the public come to clearly understand the vital role appraisers have in society. The systematic practice of redlining—bias in the approval or rejection of loans, the lack of quality public education, lack of affordable insurance and unfair property taxation are not caused by the appraiser. The appraiser must be independent, impartial, and objective. In a mortgage transaction the appraiser evaluates the property that is to be used as collateral in a mortgage finance transaction. The appraisal is provided to the lender, who uses the appraisal as one of the many criteria to underwrite the loan to determine if it will be funded or not. Contrary to what some believe, the appraiser does not make underwriting or lending decisions. Discrimination is a multi-layered, multi-cultural and multi-generational issue. The systematic, historic, and institutional causes of the various business and government policies and practices need to be addressed and cured. We do not blame the doctor for a cancer diagnosis. Why is the appraiser blamed for reporting on the real estate market?

About the Author Maureen Sweeney, SRA, AI-RRS, has been a residential real estate appraiser since 1989. From 2005 through 2017, she served as an Illinois Real Estate Appraisal Board member. Maureen is a national instructor with the Appraisal Institute and is the author of "The Valuation of Condominiums, Cooperatives, and PUDs" and the developer of their online and in-class 7-hour seminar, "Appraising Condos, Co-ops, and PUDs." She is an AQB Certified USPAP Instructor and resides in Chicago, Illinois.

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.

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Bruce's Beach, Willa & Charles Bruce beach property in Manhattan Beach, California being returned, Appraisal, value, by Mary Cummins

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist

UPDATE: 01/03/2022 Bruces will sell property to Los Angeles County for $20,000,000. That's right in line with my historical estimate below. Janice Hahn said "“This is what reparations look like,” she added, “and it is a model that I hope governments across the country will follow.” The question now is will everyone get back property they previously sold via eminent domain? The Bruce's were paid way over market value for their land when they sold it to the government. They signed an agreement. Can everyone undo, redo those sales? If so, I need to start a new business. Imagine everyone who sold a lot worth $10 can now get $20,000,000! There were about 40 lots owned by many different people in that "improper" eminent domain transaction. They were black, Latino, white... Does it matter since it was deemed improper by Janice Hahn? Time to undo the Dodgers site, Chavez Ravine, freeway land, school land... 

https://www.dailybreeze.com/2023/01/03/bruce-family-to-sell-recently-returned-land-to-l-a-county-for-20-million

06/23/2022 Janice Hahn stated the following,

“At long last, the descendants of Willa and Charles Bruce will be able to begin rebuilding the wealth that has been denied to generations of Bruce's since their property was seized nearly a century ago,” said Hahn."

Just to be factual the Bruce's were paid over market value for their land at that time. I did a historical valuation below based on similar land sales reported in latimes.com and other newspapers. Back then all sales were reported in the newspaper. They weren't "stripped of their land." The city bought it from them. They didn't lose their wealth or money. They made a lot of money on the sale. They could have bought other investments with that money and maybe they did. 

The key issue is they didn't want to sell it. They hired a lawyer to fight eminent domain proceedings. They lost. All of the people in that specific block area, white and black, had their land taken and paid for legally by eminent domain. They were all paid over market value with the Bruces getting the most money. Many citizens complained about paying over market value for the park, see articles below. 

Of course no one in eminent domain sales wants to sell their property. If they did, there wouldn't have been eminent domain proceedings. There have been many eminent domain proceedings in Los Angeles and California, some legal, some not so legal. Many times they've been paid over market value. I know because I've done eminent domain appraisals for people, cities and counties in this area. Will we now reopen all of those cases? Bet I could find the descendants of the other nearby lots taken by eminent domain. I could also find the owners of other eminent domain proceedings such as Dodger Stadium, all the freeways, schools, parks, animal shelters... Not all of those were 100% legal actions. Some were taken for one purpose then used for another like the South LA animal shelter. I was on the Prop F Committee when that happened.

And if we're really going to right some wrongs, we need to give all the land in the US back to the Native American Indians. We also need to give land back to Latinos, Asians ... who lost it through forced repatriation and other horrible acts by the government. Otherwise it's a bit discriminatory to pick and choose which person gets reparations for eminent domain transactions and which doesn't. Of course the government couldn't afford that so it's all moot. 

https://www.nbclosangeles.com/news/local/l-a-county-to-return-bruces-beach-property-to-heirs/2923656

Below is the county plan to return the property.

"County staff has negotiated a transfer agreement to return the Property to the

Bruces ("Transfer Agreement"), and a 24-month lease agreement, with an annual rent of

$413,000 plus responsibility for all operation and maintenance costs, to lease the

Property back to the County ("Lease Agreement"). The Lease Agreement includes the

Bruces' right to require the County to acquire the Property within a certain timeframe, and

the County's right to require the Bruces' to sell the Property to the County within a certain

timeframe, for a purchase price not to exceed $20 million. The annual rental amount is

supported by an economic analysis. The purchase price has been confirmed by

appraisals to be equivalent to or less than fair market value..."

There was a lawsuit case #21STCV38353

http://file.lacounty.gov/SDSInter/bos/supdocs/170222.pdf

Another doc.

http://file.lacounty.gov/SDSInter/bos/bc/1126216_BoardMemo-ReportBackonReturningBruce_sBeachtoitsRightfulOwners_6.21.22.pdf

I tried to find the actual appraisal but couldn't. I may request it in a state information act request. I agree with their value but I just want to see it. 

UPDATE: As expected many people now want to revisit their sales, settlements, property transfers in eminent domain actions all over the US. Organizations such as "Where is my land?" have been started to accept and make claims to government for more money starting with California. If government were really serious, they should be giving the original owners of the land, Native Americans, their land back or cash value. There's already talk of revisiting the land sold via eminent domain for the many Los Angeles freeways such as the 101 and the 10. There is even talk of giving money to people who were merely tenants of that land and had no ownership interest whatsoever. Many politicians talking about this today are coincidentally currently running for office. 

I knew this case would cause many new claims. How will each claim be evaluated? What documents and proof will be needed? How will the properties, damages be evaluated? I did research on Bruce Beach, Chavez Ravine, 101/10 freeway eminent domain cases property values. Some were paid under market value, some market value and some over market value for their land when it transferred. Will they just be given today's value of the land or the land, or the difference in values minus cost of money over time? How far back in time will they go? Back to the time of the Native Americans? This will be a complex issue. 

ORIGINAL: In 1912 Willa Bruce bought her first of two lots in what is now Manhattan Beach. The lot was 33' x 100' located at what is now 2600 (2608) The Strand, Manhattan Beach, California. (Scroll down to see information about the property). She stated in 1912 that she paid $1,225 for the lot. Mrs. Bruce opened her beach stand selling food and renting bathing suits so people could enjoy themselves at the beach and swim in the ocean. At the time black people were not welcome at local beaches and did not own land there. Her beach stand became known as Bruce's Beach. 

The park which is currently named Bruce's Beach is not where Bruce's Beach used to be located. Bruce's Beach was located on The Strand on the beach. The park is located a few blocks away from the beach. Based on what's I've seen so far the two lots are about 33' x 100' or about 6,666 sf. combined. The lots are directly where the Los Angeles Lifeguard station is located. 

Below are some newspaper clippings in chronological ordered. I transcribed a few of them starting with one from 1912.

"COLORED PEOPLE'S RESORT MEETS WITH OPPOSITION. REDONDO BEACH. June 24. The establishment of a small summer resort for negroes at North Manhattan has created great agitation among the white property owners of adjoining land. The new summer resort which at present consists of a small portable cottage with a stand in front where soda pop and lunches are sold, and two dressing tents with shower baths and a supply of fifty bathing suits, was opened last Monday by the dusky proprietor and patronized by many colored people from Los Angeles. Yesterday when a good-sized Sun day crowd of pleasure seekers had gathered and donned their bathing suits to disport in the ocean, they were confronted by two deputy Constables who warned them against crossing the strip of land in front of Mrs. Bruce's property to reach the ocean. For a distance of over half a mile from Peck's pier to Twenty-fourth street, a strip of ocean frontage is owned by George H. Peck, who also owns several hundred acres of land in Manhattan in addition where Mrs Bruce's property is situated. This strip has been staked off and "no trespassing" signs put up and consequently the bathers yesterday could not get to the beach without walking beyond Peck's strip of ocean frontage. This small inconvenience, however, did not deter the bathers, on pleasure bent, from walking the half mile around Peck's land and spending the day swimming and jumping the breakers. All along the beach in front of the prohibitd strip which was patroled by the constables, the light hearted "cullud" people frolicked in the breakers or lay on the warm samd enjoying the sea breezes. 

Mrs. Bruce, a stout negress whose home is at No. 1024 Santa Fe avenue says most emphatically that she is there to stay, and that she will continue to rent her bathing suits to people of her race. She owns a lot on Manhattan avenue 33xl00 feet for which she paid $1225, a high price compared to the cost of near by lots. She says she purchased the property from Henry Willard, a real state dealer of Los Angeles. The entire next block in the Manhattan addition between Twenty- sixth and Twenty-seventh streets has been leased to Milton T. Lewis, a colored real estate dealer, by Willard. Lewis proposes to rent space for tents on this block to negroes who desire to come to the beach. 

The situation, as described by Mrs. Bruce, has a pathetic side, for she avers negroes cannot have bathing privileges at any of the bath-houses along the coast, and all they desire is a little resort of their own to which, they might go and enjoy the ocean. "Wherever we have tried to buy land for a beach resort we have been refused, but I own this land and I am going to keep it." She and her associates feel that it is unjust that they should not be allowed to "have a little breathing space" at the seaside where they might have a holiday. Her husband is a chef on a dining-car that runs between Salt Lake City and Los Angeles. Property-owners of the Caucasian, race who have property surrounding the new resort deplore the state of affairs, but will try to find a remedy, if the negroes try to stay." June 27, 1912 Part I, Los Angeles Times. 

June 19, 1919 Juneteenth picnic at Bruce's Beach.

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist

1924 the City of Manhattan Beach voted to condemn Bruce's Beach to build a park. Condemnation proceedings began against the Bruces. This article below states it was racism and hatred against the Bruces and black people. I transcribed the article below the image of the article. The land ended up being vacant for 30 years and no park was built until many years later. They should have won the lawsuit but lost because of judicial corruption against black people. Must have been depressing to be a lawyer representing black people back in the day. Even today it's depressing trying to stand up for your rights in places with judicial corruption like good ole boy Texas and the South. 

December 26, 1924, California Eagle

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist

"Bruce's Beach Fights Condemnation. Mr and Mrs Chas. A Bruce and their son, owners of Bruces Beach, are facing an action in the Superior Court filed by the City of Manhattan in which that city, seeks to condemn all the property owned by colored people at Manhattan Beach, under the pretext that it is to be named for a public park.

Bruces Beach. as it is commonly called is one of the best known resorts patronized by our people in the State of California, and many outings and parties have been held there during the past fourteen years the Bruces have maintained it. 

The Bruces have won an enviable reputation by reason of the upright and Chi??? conduct, and even their enemies at Manhattan Beach who are fostering the papers to confiscate this property under the guise of 'condemnation' proceedings, admit that their conduct has been exemplary and the management of the place of the highest order. 

Atty. Willis O. Tyler has been engaged to prosecute the defense of the Bruces and is preparing an answer to the Condemnation Proceedings in which he will set out the fact that racial prejudice is the real question to be tried and that there is no necessity for the condemnation of the Bruce' property for park purposes. In fact, says Atty. Tyler, there is much vacant-property on both the north  and south side of the property which could have been obtained and the fact that the city seeks to restrict its proposed park to the property owned by colored people duly is palpable attempt to use the condemnation proceedings as a ruse to carry out the race prejudice which has taken this particular form of objection to members of our group having the right to enjoy bathing in the Pacific ocean." 

Turns out the city condemned 30 lots total for the park, see the link below I just found. Five were owned by blacks and 25 were owned by whites. Some had shacks and some were vacant. Allegedly the amount of money paid for the land was more than market value at the time. This caused citizens to be upset that the city spent so much money over paying for the land for a park. The 1929 condemnation payments were for about $100 to $2,900 per lot. The Bruces received about $14,500 for the two lots of land in the condemnation process though their lots were improved. One person received $1,300 and another received $2,900 for one lot in the same block 5. These lots also faced the ocean and were right next to the Bruce's lot. Based on this settlement it appears the Bruces were paid over market for their land. It appears they were paid more than many of the white people. Still, they didn't want to sell and the city didn't build the park. It was an abuse of the condemnation process to run out the Bruces. I feel the white neighbors pressured the city to condemn the land for a park just to push the Bruces out of the area due to racism.

I found some land values from newspapers.com for PECK'S MANHATTAN BEACH TRACT. 1905 the land was offered for $350 to $800. At the same time someone else was offering them for $550 to $1,100. 1908 block 2 lot 11 sold for $10. 1907 lot 1 block 12 sold for $10. Based on what I'm seeing the Bruce's over paid for the property when they first bought it. I assume they were happy that someone would sell them the land as most wouldn't sell to black people at that time. Allegedly Peck sold two blocks to black people via a black real estate agent. The agent and Peck clearly ripped them off for profit. Peck also ripped off white people as it was a less desirable area. This area was farther from the pier and other development. That's why it was vacant for so long. That's probably why Peck allowed black people to buy it. Thank god things have improved though we are still far away from any real equality. The Bruce's paid $10 for their second lot in 1920 when they earlier paid $1,225 for their first identical directly adjacent lot.

I decided to do a historical evaluation of the land as of 1929 when the Bruce's were paid for the land. Lots were still asking $375 from George H. Peck. That's the same price he was asking in 1905. He didn't get it in 1905 and doubt he got asking in 1929. In 1926 the city of Manhattan Beach bought 36 lots on The Strand in a more desirable area north of the Bruce's lots for $75 a front foot from Peck. The Bruce's lots were 33' wide each so that would be $4,950. The Bruce's lots were in a much less desirable area farther from the pier and development. Even then the citizens of Manhattan Beach said the city paid too much for Peck's land. It appears Peck had a good "relationship" with the city for them to pay such a premium for his lots over others. 1929 ocean view lots on the sand in Manhattan Beach for $595 asking max. 

I stumbled upon other news items concerning the Manhattan Beach parks in 1929. The city was going to turn those sites into parks. They stated they couldn't afford to maintain the parks so they asked Los Angeles County to lease and maintain them as a county park. California had just offered $3,000,000 funding for cities, counties to buy land for parks from private parties. The county agreed to take over George H Peck's 1/2 long strip of The Strand June 1929. I think this may have been the strip of land Bruce's patrons were not allowed to cross over so they had to walk 1/2 mile up and around that strip to get to the ocean. That may be a different strip but it's the same sand strip in front of The Strand boardwalk which we now call "The Strand." Based on everything I've seen the Bruces were paid over market value for their land in 1929. Still, they didn't want to sell.  

This land used to be somewhat worthless as it was sand dunes. It was kind of like swamp land back in the day. The land speculators made a ton of money selling the land. Of course Peck liked selling them the land as he made out like a bandit. He over charged many people. Manhattan Beach eventually ended up hauling away the sand dunes and selling the sand to be used in construction elsewhere years later. There is only one sand dune left in Manhattan today.

Willie "Willa" Bruce died September 5, 1934 in Los Angeles, California. "BEACH OWNER PASSES Mrs. Willie Ann Bruce, proprietor of Bruces beach, passed away after a long illness - September 5 Funeral services were held from the First AME church, Eighth and Towne, with Rev. J. B. Isaacs officiating. She is survived by a son, daughter and grandson, all of Los Angeles."

Based on records she had five children but only one survived, her son Harvey Anthony Bruce who died in 1954. Harvey had two sons, Harvey and Bernard who are both dead. I assume they have children. 

Governor Gavin Newson signed Senate Bill SB 796 in 2021 allowing the State of California to allow Los Angeles County to give the land to the Bruce family. 

Information about the land and value

Based on everything I've read the two lots are 33' x 100' each. They are located at 2600 The Strand, Manhattan Beach, California 90266, see map below. The original address was 2608 The Strand, Redondo Beach, CA. The Los Angeles County Lifeguard Training Facility is located directly on top of the land. The County offered to give them the exact two lots or two lots in the parking lot directly next to them. The County also offered to continue to use the land and just pay them rent. 

Below are the parcels circled in red and a satellite image of the same. I don't know exactly which two parcels they are so I'll assume they are interior lots and not a corner. Update, first lot was lot 8 of block 5. They bought lot 9 for $10 in 1920. Both interior lots. The legal description of the entire site today which includes six lots is PECK'S MANHATTAN BEACH TRACT  LOTS 5,6,7,8,9 AND LOT 10. The Los Angeles County Tax Assessor number is 4177-024-901.

Below is a satellite image of the site. It's at the red tiled Lifeguard Training Center building. The Center and its parking lot are six lots. Two of the lots are the lots in question. 

There is more land located on the other side of The Strand which meets the sand. This is the strip of land which used to be owned by George Peck. That land is now owned by the county and Federal government. I think they may have taken it by condemnation. It makes you wonder if the county would have taken Bruce's land by condemnation for the Lifeguard Center years later if Manhattan hadn't taken the land for a park. Of course the Lifeguard Center only took the land because it was a vacant park.

I've appraised a lot of property in this area on The Strand. I don't think the two lots are worth $75,000,000. I pity whoever does the appraisal  because if they don't come in around $75,000,000, they'll probably be called a racist, get negative reviews on their business, death threats and maybe even some complaints against their license. I know that sites right next to those lots are single family homes and duplexes. The lot would have ended up single family zoned if it wasn't condemned for a park. The Bruces were living at the property. It was sold as lots for homes. I pulled all properties located on The Strand right next to the site sold within the last two years. Obviously there are no land sales. If we look at the cheapest home, duplex sales on The Strand with similar sized lots we can get the land value. 

2316 The Strand 5,715 sf lot with 5,500 sf 6 bed, 7 bath home sold 09/2021 for $16.5M newer home.

2508 The Strand 4,556 sf lot with 5,328 sf 4 bed, 5 bath home sold 09/2021 for $12.2M newer home.

2804 The Strand 3,481 sf lot with 3,469 sf 4 bed, 4 bath home listed for $16.4M didn't sell older home. 

2722 The Strand 6,927 sf lot with 6,000 sf 8 bed, 9 bath duplex sold for $17.7M 11/2020 built 1951 sold for land value as a double lot. 

2508 The Strand

Just for a high ballpark figure we can use 2508 The Strand one block away. This has a newer luxury quality amazing house on it and it just sold. If it were only land, it would have sold for $2,677/ft. Obviously the land is worth less than that because it has an amazing house on it. 6,666 sf Bruce Beach site x $2,677 is $17.8M. This would be the maximum, maximum the site would be worth today if it were sold on the open market.

Fortunately 2722 The Strand sold 11/2020 for $17.7M as a double lot development for land value. It's two blocks away. This is slightly larger than the Bruce site. Based on all I've seen the current market value for the site is somewhere about around $17.7M. This is not an appraisal as I have not inspected the site and don't know all the limitations and issues with the site. It might not be possible to build anything on the property today because of the California Coastal Commission, it's in a tsunami zone and low laying area. There could also be an issue because there's a lifeguard tower in front of the site. There is also the other piece of county land that is between the property and the beach/ocean. This is not waterfront property. If that's the case, they should just rent the site to the County Lifeguard Center as is. If they try to develop it or sell it for development, I see a lot of litigation, costs and hassles by neighbors and government agencies. 

It'll be interesting to see if this opens up the flood gates for more people wanting back the land they sold, gave away, had condemned, stolen by the government years ago. I could really see Native American Indians asking for their land back. Their land was stolen outright except for a few who sold though not on fair terms. Some original Mexican owners who owned the land after Native American Indians would also be entitled to some land as well. They had their land stolen or swindled from them. I could see others just wanting to renegotiate or take advantage of the huge increase in real estate values. 

UPDATE: A recent article stated the Los Angeles County Tax Assessor will be reappraising the property with "no zoning restrictions as is." I assume this will be for tax purposes of the assessor is appraising it. If they charge transfer tax or capital gains, there will be a huge tax. They'd have to sell or lease it back instantly. No zoning restrictions means it could be used as commercial, retail, hotel ... anything. I appraised it as it's most likely zoning which is residential. It would be worth more with no zoning restrictions. As they are only two small interior lots bounded by the Life Guard building and parking lot there is no way they would really build anything like a hotel or restaurant. With the Coastal Commission, single family neighbors, NIMBYs and others I doubt they could build anything other than residential. At that point I think the Life Guard would have to move the center entirely. 

Just found this great history of the Bruce's and their land after I wrote the article.

https://www.manhattanbeach.gov/home/showpublisheddocument?id=46093

Nice Powerpoint presentation

https://www.manhattanbeach.gov/home/showpublisheddocument/44319/637333659463800000

Here is a thesis someone wrote about Bruce's Beach from 1956. 

https://scholarworks.calstate.edu/downloads/xk81jm67x

Los Angeles County report on how the land would be returned. They suggest maybe swapping some land in the park for the two lots. Many suggestions. 

http://file.lacounty.gov/SDSInter/bos/bc/1109402_BoardMemo-ReturningBruce_sBeachtoitsRightfulOwners-6-30-21.pdf

Here's a map of tract 8867 which shows people used to own the lots basically on the sand west of The Strand. All that land now belongs to the government as the high tide lines have changed. 

https://pw.lacounty.gov/sur/nas/landrecords/tract/MB0115/TR0115-082.pdf

Another old plat map before the area was further subdivided 

https://pw.lacounty.gov/sur/nas/landrecords/tract/MB0028/TR0028-041.pdf

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.

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California Assembly Bill AB 948 signed by Governor inre Real Estate Appraisal, Bureau of Real Estate Appraisers, by Mary Cummins

California Bill AB 948 Bureau of Real Estate Appraisers, Real Estate Appraisal , Mary Cummins, Los Angeles, Governor Gavin Newsom, signed, license, continuing education, bias, complaints, race, discrimination

Governor Gavin Newsom just signed California Assembly Bill AB 948. AB 948 modifies and adds regulations for appraising, buying, selling, making loans on real estate in California. The new regulations have to do with any alleged bias from anyone. This includes lenders, mortgage brokers, real estate agents and real estate appraisers. 

It's already illegal to discriminate in real estate and housing per the Fair Housing Act of 1968. This new bill basically just restates that. It also adds new educational requirements in regard to bias. They aren't additional educational hours. They are just specific hours for new applicants and renewals.

The bill amends "Sections 11340 and 11360 of, and to add Sections 11310.3 and 11424 to, the Business and Professions Code, to add Section 1102.6g to the Civil Code, and to amend Section 12955 of the Government Code, relating to real estate."

From the Bill, "LEGISLATIVE COUNSEL'S DIGEST AB 948, Holden. Bureau of Real Estate Appraisers: disclosures: demographic information: reporting: continuing education.

Existing law, the Real Estate Appraisers’ Licensing and Certification Law, creates a Bureau of Real Estate Appraisers within the Department of Consumer Affairs to administer and enforce that law. Existing law requires the protection of the public to be the highest priority for the bureau in exercising its licensing, regulatory, and disciplinary functions.

This bill, among other things, would require the bureau to place on an existing complaint form a check box asking if the complainant believes that the opinion of the value of the real estate is below market value. The bill would also require the bureau to collect specified demographic information, voluntarily provided, regarding sellers, those seeking to refinance, buyers, or an authorized representative in real estate transactions making a complaint. The bill would require the bureau to compile the collected demographic information and report that information to the Legislature on or before July 1, 2024.

This bill would prohibit a licensee from basing their appraisal of the market value of a property on the basis of race, color, religion, gender, gender expression, age, national origin, disability, marital status, source of income, sexual orientation, familial status, employment status, or military status of either the present or prospective owners or occupants of the subject property, or of the present owners or occupants of the properties in the vicinity of the subject property, or on any other basis prohibited by the federal Fair Housing Act.

Existing law requires the Chief of the Bureau of Real Estate Appraisers to adopt regulations governing the process and procedures for applying for a license, including education and experience equivalency, and for renewal of a license, including, but not limited to, continuing education requirements on a 4-year cycle.

This bill would require, beginning January 1, 2023, an applicant to complete at least one hour of instruction in cultural competency, as defined. The bill, as part of the continuing education requirement in order to renew a license or restore a license to active status, would require for each licensee renewing on or after January 1, 2023, at least 2 hours of elimination of bias training. Beginning January 1, 2023, a licensee would be required to complete at least one hour of instruction in cultural competency every 4 years.

Existing law requires that specified disclosures be made upon transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential property.

This bill, after July 1, 2022, would require that every contract for the sale of single-family residential real property contain a notice stating that any appraisal of the property is required to be unbiased, objective, and not influenced by improper or illegal considerations. The bill would require the notice to include information regarding reporting biased appraisals to the financial institution or mortgage broker that hired the appraiser or the Bureau of Real Estate Appraisers. The bill would also require the notice to be delivered by a licensed person, as defined, refinancing a first lien purchase money loan secured by residential real property containing no more than 4 dwelling units either prior to, or with, the loan estimate or the mortgage loan disclosure statement.

Existing law, the California Fair Employment and Housing Act, prohibits housing discrimination, including discrimination through public or private land use practices, decisions, or authorizations, and based on specified personal characteristics. Existing law makes it unlawful for any person or other organization or entity whose business involves real estate-related transactions to discriminate against any person in making available a transaction, or in the terms and conditions of a transaction, because of specified personal characteristics.

This bill would make it unlawful for any person or other entity whose business includes performing appraisals of residential real property to discriminate against any person in making available those services, or in the performance of those services, because of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, source of income, disability, genetic information, veteran or military status, or national origin."

Link to actual bill below.

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB948

This bill appears to be a political response to a couple of California media articles about alleged bias in real estate appraising. One article was about Cora Robinson who filed a complaint. Based on my research the first appraisal was within the range of market value. I did a FOIA request to get a copy of the investigation results and will post them here when they are available. Another article was about Saleem Shaheed. This was another case where the first appraisal was within the range of market value. Shaheed did not file a complaint. 

September 21, 2021 Marcia Fudge the head of HUD stated that there were few complaints for racial bias in appraising. I looked at the HUD stats and agree. A lot of the outrage in the media is from a handful, about five actually, alleged cases of alleged low appraisals caused by alleged racial bias. I researched the five cases and wrote articles in this blog about them. The first appraisals were within the range of market value. They were not low. The markets were quickly appreciating. The second appraisals came in over market value because the second appraiser used comps outside of the area which were not true comparables. I will be posting the results of the FOIA requests of the two complaints filed here.

A lot of these recent claims of alleged racial bias stem from the change in political climate related to George Floyd. "The country is in a time of racial reckoning, heightened by a summer of protests against systemic racism and police brutality following the death of George Floyd in police custody." Floyd's death "sparked the largest racial justice protests in the United States since the Civil Rights Movement." "According to data from various sources, the Black Lives Matter movement is now the largest movement in US history." While racism exists and must be banished from our nation the pendulum has now swung to the extreme side. In this new light anything and everything is automatically "racist" today before even looking at the facts.

It light of everything that is currently happening I believe real estate professionals need to educate their clients and the public about the real estate appraisal, lending and selling processes. Generally the person reading the appraisal report is not the client. The client is the AMC and the lender. The report is made for real estate professionals and not lay people. I think it's a good idea for appraisers to add language for lay people who will probably end up reading the report. Some of the complaints about reports that I've read clearly show that the reader doesn't understand market value or the underwriting process. I believe this has caused some to assume that any value they don't like must be "racism" when it's not. 

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.

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Alleged discrimination in real estate appraisal 10222 Elmfield, Loveland, Ohio, Aaron and Erica Parker, by Mary Cummins

erica parker, 10222 elmfield, loveland, ohio, aaron parker, mary cummins, discrimination, racism, black, white, real estate appraisal, real estate appraiser, real estate, contract price, false, misleading, amy goodman, 

Here is another case of alleged discrimination in a real estate appraisal. The owners posted their full names, home location, appraisal values, list and sale prices so I will also share it. 

Aaron and Erica Parker owned a home located at 10222 Elmfield Dr, Loveland, Ohio 45140. They purchased it April 9, 2014 for $371,978. Per the MLS it was listed for sale April 13, 2021 for $525,000 by Amy Goodman of the Sibcy Cline real estate office MLS #1696320. Amy Goodman claims she is the "Fair Housing Officer" for Sibcy Cline real estate. She is not an Officer and not a Fair Housing Officer for the FHA or HUD but merely using that title most likely to promote her business. 

Allegedly Aaron and Erica Parker listed the home for $525,000 then instantly agreed to accept about $504,000 for the property. I assume they still paid the commission to Amy Goodman even though she didn't market or show the property. Erica stated after they got the instant offer she was "ecstatic" and “We were high-fiving each other,” “We were texting our Realtor, like, ‘Can you believe it?’”

Allegedly the first appraisal on May 5, 2021 came in at $465,000 which they said was $42,500 below the contract price. We can do math so contract was $507,500. At first their agent asked them if they would reduce the price. Parkers said no. Is this agent working for the Parkers or is she friends with the buyers giving them this pocket listing without any other bidders?

Per the article. "Goodman and the Parkers asked the appraiser and the buyers’ lender to correct the errors in the report. The appraiser refused, they said, saying he stood by his analysis. The lender had a staff member review the appraiser’s work and stood by the total, too." 

Based on my experience if someone submits a reconsideration of value i.e., an appraisal appeal, with similar higher priced comps and it has merit, the appraiser, AMC, lender will adjust the value. That didn't happen. I'm assuming there was no merit.

For no reason the sellers automatically assumed it was racism per the article. They decided to remove all traces of their skin color from the home and request another appraisal. The article states they "erased blackness from their home." Erica called it "white washing." May 20, 2021 the second appraisal came in at $557,000. They were happy. They assumed the higher appraisal was caused by their skin color washing. Then they sold their house June 11, 2021 for $507,500. 

First, some questions. If they thought it was worth $557,000, why the hell did they sell it for $507,500? That means they agreed to sell it for $50,000 less than it was allegedly worth. Was their real estate agent scamming them by listing it low and selling it as a pocket listing? They allowed a few people and two appraisers to view their home. Why not put it on the market and just not do open houses? No one is doing open houses today anyway. They could have sold it within a week in this market with a few private showings all in one day while they're out. There were photos from the last 2014 sale still online. 

As usual there is more to this story than the poorly researched and misleading media article trying to stoke the flames of racism. While I don't usually support robot appraisals I'm going to post some robot appraisal values for this home. This way no one can claim racism as the values are not from live people. They don't see the home, homeowners or anything because they're just a math formula. I am not appraising this property. Robots provided this value estimate. Below are the robot appraisal values for this home as of today, August 19, 2021. The home was appraised in May and sold in June over two months ago in a quickly appreciating market. Values range from $461,000 to $523,000, $497,000 mean/average, $502,000 median. 

Zillow $523,000
Realtor $504,000
Redfn $501,002
Trulia $507,500 
Remax $487,800
USDA Properties $502,800
Spokeo $461,000

Below is a chart from Redfn which tracks their estimates in the past for this home. Based on statistics average home in Ohio appreciated over 11% last year. That's about 1% a month. That means the original appraisal was in line with market value at the time. The second appraisal is clearly too high. At least Aaron and Erica Parker don't have to worry that they sold their home for less than it's real market value. 

erica parker, 10222 elmfield, loveland, ohio, aaron parker, mary cummins, discrimination, racism, black, white, real estate appraisal, real estate appraiser, real estate, contract price, false, misleading, amy goodman

Below is the listing history for the property. Aaron and Erica Parker had been trying to sell their home for a long time with no takers. They clearly listed it too high for the market each time. They even reduced the price twice. 

04/13/2021 $525,000 Pending Cincy MLS #1696320

04/13/2021 $525,000 Listed For Sale Cincy MLS #1696320

03/04/2020 $465,000 ListingRemoved Agent Provided

01/02/2020 $465,000 PriceChange Agent Provided

11/13/2019 $468,500 PriceChange Agent Provided

11/08/2019 $470,000 PriceChange Agent Provided

11/05/2019 $475,000 Listed For Sale Agent Provided

04/09/2014 $371,978 Sold

Here is my take on the situation. Real estate appraisers are limited by the highest recent similar sold home price. Perhaps a nearby similar home sold around $465,000 before May 5, 2021. While the home is on a cul-de-sac it backs up to a major road with a double line. Not good for families with children besides being a nuisance. 

It's possible that another similar home sold after May 5 but before May 27, 2021 for $557,000. Based on the sales I'm seeing that doesn't seem possible. I will bet that a home which was not similar sold for $557,000. The appraiser used a comp outside of the immediate area or it was larger, had more bedrooms, more full baths, more garages, more land and was fully upgraded. Erica Parker claims her home was upgraded. We don't know but the appraisal allegedly said it was not. Maintenance items such as new paint, new same style roof, replacement AC...are not upgrades. Upgrades would be adding a pool, an addition to the home... 

It's possible Erica was talking about "updates." That only has to do with the kitchen and bathrooms. They bought the home new in 2014. It shouldn't really need any updates in just seven years unless it was a poorly made cheap development. In the appraisal it's page one, "Improvement" section near the bottom. These forms are made for appraisers, lenders, underwriters and not lay people to read or understand. What the layperson does not see is the drop down menu which clearly shows it's only about kitchen, bathrooms updates. An "update" would be new or remodeled kitchen or baths. Below is an image which shows the form with the drop down menu exposed. All the viewer sees is the resultant text in the yellow highlighted box which generally says "no updates within the prior 15 years" or maybe "updated" "remodeled" "within 'x' to 'x' years." Complain to the government who made these forms. Click to see larger. 

real estate appraisal, how to read, updates, condition of improvements, upgrades, updated, remodeled, form, no updates, condition, property, mary cummins, real estate appraiser, complaint, 

In another case a  black woman asked for a second appraisal when she didn't like the first one. She didn't remove any evidence of her skin color. The second appraisal still came in higher for other reasons namely the passage of time in a quickly appreciating market. Removing evidence of skin color is not what caused the increase in appraisal value here. I will bet the second appraiser used comps that were not similar but superior to the subject property. 

Another thing to note is that Erica Parker has a history of calling out people and businesses online. She complains on Twitter about businesses. Then she posts the freebies she gets from those businesses in response to her complaints on her Twitter account. The real estate agent Amy Goodman falsely claims she's a "Fair Housing Officer" because she attended a luncheon where someone spoke about housing discrimination. It appears Amy Goodman is promoting this story in order to drum up real estate business acting like she helped her black client deal with discrimination. She clearly didn't because she sold the home for $507,500 when it was "allegedly" worth $557,000. 

My biggest issue with this misleading article is the fake research they cite. Andre Perry, Michael Neal's research does not show that real estate appraisers appraise the homes of black people for less than the homes of white people regardless of all other factors. Andre Perry used Zillow estimates which were made by robots and homeowners guesstimates of value of their own homes. Michael Neal used the same. Neal stated that the robot appraisal values had the same amount of error variance for both white and black areas. No live person or real estate appraiser appraised any of the properties in the research. The only thing the data showed was that people of color generally make and have less money than white people. This is a fact based on real research. For this reason in general they buy and own homes in less expensive areas which they can afford. 

It's extremely reckless for the media to promote these false and misleading narratives and articles. The definition of racism is "prejudice, discrimination, or antagonism directed against a person or people on the basis of their membership in a particular racial or ethnic group." Assuming all white real estate appraisers are racist is actually racism. We use the same math formula to appraise homes as the robot appraisers which are clearly not racist because they aren't even people. 

In this quickly appreciating market some appraisals fall below contract price. Agents know this so they have added appraisal clauses. Here is an article about the current change in political climate which is causing people to call real estate appraisers "racist" when their appraisal doesn't match the contract price. It's not about racism but data and numbers. Actual racism is a horrible evil which should be banished from our communities. Making up false claims of racism when there is real racism out there to fight just divides and harms the community. 

Original article.

https://www.wcpo.com/news/our-community/this-black-familys-home-appraisal-grew-by-92-000-after-they-removed-all-signs-of-their-race

*I am not and did not appraise this property. I contacted the original author of the article and she never replied.

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.

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