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.

Thursday, September 9, 2021

Alvarado Terrace Historic District Real Estate Homes in Los Angeles, California, by Mary Cummins real estate appraiser

Alvarado Terrace, historical homes, mary cummins, real estate appraiser, appraiser, los angeles, california, historic, hpoz, national register of historic places, real estate, appraisal, los angeles historic cultural monument, pico union, terrace park,

Alvarado Terrace Historical District is a designated historic district in the Pico-Union district of Los Angeles, California. It is located southwest of Downtown Los Angeles, along Alvarado Terrace between Pico Boulevard and Alvarado Street. Alvarado Terrace is a curving street that faces a park.

Scroll down for photos I took today, September 9, 2021 of the homes on Alvarado Terrace.1353 Alvarado Terrace sold for $2,100,000 in 2021.

"Six homes and a church in the district were designated as Los Angeles Historic-Cultural Monuments in 1971, and the entire district was listed in the National Register of Historic Places in 1984.

The Alvarado Terrace Historic District is within the original Spanish Pueblo of Los Angeles boundaries established in 1781. During the late 19th century, the land was owned by Doria Deighton Jones, the widow of a wholesale grocer. In 1897, the Los Angeles Golf Club (predecessor of the Los Angeles Country Club) leased the land and built a nine-hole golf course that came to be known as "Windmill Links," due to the use of an old windmill as the clubhouse.

Jones subdivided the land into residential lots in 1902. The lots were sold for $10 each, with the caveat that the buyer was required to build a house costing at least $4,000. The area was promoted as a "second Chester Place," referring to the city's most prestigious street in the West Adams district. By 1906, the development was full.

Terrace Park and Powers Place

In an effort to enhance the neighborhood, one of its chief promoters (and president of the City Council), Pomeroy Powers, persuaded the city in 1904 to construct a park along Alvarado Terrace. Originally called Summerland Park, the park was soon renamed Terrace Park. The park included a fish pond, rosebeds, an underground tool shed, and a full-time gardener. The park was later remodeled with only grass and trees. There is a small strip of brick-paved street at the north end of the park known as "Powers Place" that holds the distinction as the "shortest street in Los Angeles." The park and brick-paved street were declared a Historic-Cultural Monument (HCM #210) in February 1979. By 1983, Terrace Park was suffering from neglect and was described as "so bare it's hardly recognizable as a park."

Six homes designated as Cultural Historic Monuments

Alvarado Terrace has the distinction of having six houses on a single block (all on the north side) designated as Historic-Cultural Monuments by the City of Los Angeles Cultural Heritage Commission. The six houses were designated as Historic-Cultural Monument nos. 83-88 in July 1971. The houses were built on a raised terrace overlooking Terrace Park. The designated homes were built between 1902 and 1905 and reflect a rich eclecticism in their architectural style. They include Craftsman, Victorian, Mission, Tudor, and Shingle style architecture. A real estate brochure from 1903 described the neighborhood this way: "The only exclusive Residential Tract in the city. Beautiful Parks. Shade Trees Planted. High Class building restrictions. No flats, cottages or stores. Wide streets conforming to the contour of the land with cement sidewalks, curbs and gutters. Perfect sewer system, water, gas, electric lights..." With the park and well-preserved homes, the district provides a complete historic neighborhood that has been featured in motion picture and television productions. While the surrounding area has been described as "low-income and multicultural," the Los Angeles Times in 1991 described Alvarado Terrace as "a slice of L.A.'s genteel and moneyed past preserved."

Boyle-Barmore House

As one enters Alvarado Terrace from the north, the first of the designated homes is Boyle-Barmore House, located at 1317 Alvarado Terrace. Built in 1905, the house was designed by architect Charles E. Shattuck in a Craftsman style with Tudor influences, including a three-gabled dormer. The house was built for Calvin A. Boyle, one of the founders of the Hollywood Board of Trade. The house was acquired in 1908 by Edmund H. Barmore, president of the Los Angeles Transfer Company. The house was used in the 1980s as a women's shelter by the Union Rescue Mission.

Cohn House

The second of the designated homes on the north side of the street is the Cohn House at 1325 Alvarado Terrace. Built in 1902, the house was designed by Frank D. Hudson and William Munsell. Hudson and Munsell also designed the Museum of Science and Industry, the first museum built in the city's Exposition Park. Cohn House combines Craftsman style in its first floor of rock-faced sandstone, and a second level reflecting the Shingle style. The house also has three gabled dormers that give the house the look of a Swiss chalet. The house was built for Morris Cohn, a textile manufacturer. Cohn has the distinction of having both his residence and his textile factory designated as Historic-Cultural Monuments (HCM #84 and HCM #110). Cohn House was used in the 1980s as a men's shelter by the Union Rescue Mission.

Gilbert House

Gilbert House, located at 1333 Alvaardo Terrace (pictured above right), was built on speculation in 1903 by Ida and Pomeroy Powers, who also built and lived in the Powers House next door. Gilbert House is one of the most eye-catching homes in the district built with a mix of Victorian, Shingle-Style and Craftsman styles. The house was first purchased and occupied by Wilbur F. Gilbert, a wealthy Texas oil man. Gilbert's daughter, Carolyn McCulloch (d. December 24, 1992), was still living in the house in the 1980s.

Powers House, 1345 Alvarado Terrace

Powers House at 1345 Alvarado Terrace (HCM #86) was built in 1903 for Pomeroy Wells Powers and his wife Ida. Designed by Arthur L. Haley, the home is built in the Mission Revival style, and has been described as "exuberant" and the "flashiest on the block" for its fanciful stucco curlicue. The stucco house has an arcaded veranda that supports a second-floor balcony. Rising from the balcony are towers connected by a curved parapet wall. The large corner tower has a loft room accessible only from the home's exterior.

Pomeroy Powers was a lawyer who was one of the original developers of Alvarado Terrace. He was also a member of the City Council and an officer of the Juanity Mining Company and the Short Line Beach Company. The house was restored in the mid-1970s by owner Ann Gutierrez, including new walls, plumbing, wiring and ceilings. In the 1990s, the house was used as a restaurant known as Salisbury Manor, with dining downstairs and the upstairs consisting of restored bedrooms available for viewing by patrons. A review of the restaurant noted that, "with some myopia and imagination," the restaurant and neighborhood allowed a glimpse of an earlier era. "What with the good decent food, a dose of history tempered with nostalgia, a seat in a shaft of afternoon sun and a cup of chamomile tea in my hand, I couldn't help but think there are far worse things in life than a meal on Alvarado Terrace."

Raphael House

The Tudor-style Raphael House at 1353 Alvarado Terrace (HCM #87), built in 1903, was designed by architects Sumner P. Hunt and Wesley A. Eager. Hunt was also responsible for the Raymond Hotel in Pasadena, the Casa de Rosas in North University Park, the Automobile Club building at Figueroa and West Adams, and Ebell of Los Angeles. Originally owned by Robert H. Raphael, the owner of Raphael Glass Company, the house is noted for its extensive use of both stained and leaded glass. Over the Labor Day weekend in 1995, the owner stripped Raphael House of some of its finer accessories, including stained glass windows, wooden fireplaces, and even the plaques identifying its historical status. The city's Department of Building and Safety stepped in and ordered the owner to return the fixtures or face fines and possible jail time.

Kinney-Everhardy House

Built in 1902, the Kinney-Everhardy House at 1401 Alvarado Terrace (HCM #88) was built by the same architects (Hunt & Eager) who designed the Raphael House next door. The house has been described as "an eclectic combination of elements from both the Queen Anne and Shingle styles."

First Church of Christ, Scientist and the Peoples Temple

Jim Jones' Peoples Temple operated out of this church in the Alvarado Terrace district in the 1970s.

The district also includes the former First Church of Christ, Scientist built in 1912 on an odd-shaped lot at the corner of Alvarado and Hoover Streets. The church was designed by architect Elmer Grey, who was also responsible for the Beverly Hills Hotel (1911), the Huntington Gallery and Library (1910), and the Pasadena Playhouse (1924–25). The church has been variously described as Beaux-Arts, Italian and Spanish Romanesque, and Mediterranean. The building's most notable features include its semi-circular porch with fluted columns, brick tower, rounded arches, and tiled roof.

The building has had a colorful history, having housed Jim Jones' Peoples Temple from 1970 until their move to Jonestown, Guyana in 1977. In 1975, the Los Angeles Times noted the Peoples Temple's move into the old church: "People's Temple, a Disciples of Christ church, now occupies the old First Church building." After the mass suicide in Jonestown, the Times noted that the Peoples Temple had moved out of the "huge Italian Renaissance-style church" in 1977.

The church was designated as Historic-Cultural Monument no. 89 in 1971. In 2008, the church was operated as the "Iglesia Adventista Central," as shown in the adjacent picture. An interesting profile and several photographs of the church can be found on the Big Orange Landmarks web site.

National Register of Historic Places

In 1983, the Alvarado Terrace area was submitted to the Department of Interior to be considered for designation as the city's third officially recognized historic district. (Wilton Place and Whitley Heights were designated earlier.) To draw attention to the effort, many of the homes were opened to tours. The district obtained the recognition it sought in 1984 with its inclusion in the National Register of Historic Places. Pico Union became the city's 19th Historic Preservation Overlay Zone Historic Preservation Overlay Zone on August 10, 2004."

The Tudor-style Raphael House at 1353 Alvarado Terrace (HCM #87), built in 1903, was designed by architects Sumner P. Hunt and Wesley A. Eager. Listed for sale 09/2021 for $2.1M. Alvarado Terrace, historical homes, mary cummins, real estate appraiser, appraiser, los angeles, california, historic, hpoz, national register of historic places, real estate, appraisal, los angeles historic cultural monument, pico union, terrace park,

Below are a few more pics of 1353 Alvarado Terrace interiors from 09/2021.

https://en.wikipedia.org/wiki/Alvarado_Terrace_Historic_District

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

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 7, 2021

Gentrification and Urban Renewal, the issues and solutions for an improved community. Mary Cummins

The article linked below is an interesting read about "gentrification." The article states people should be more upset about the areas not being revitalized but they're not.

"What we talk about when we talk about gentrification. The worst problems are in the neighborhoods that aren’t gentrifying." By Jerusalem Demsas@JerusalemDemsas Sep 5, 2021.

https://www.vox.com/22629826/gentrification-definition-housing-racism-segregation-cities

The term is not even American. It was coined in 1964 by a British sociologist to describe the British "gentry" moving into working class areas. It has to do with affordability. It's not the racial issue that it's become here in the US starting in the 1990's. "Gentrification" is not a dirty word as stated by today's US media and some local community groups.

The article states "But the core rot in American cities is not the gentrifying neighborhoods: It is exclusion, segregation, and concentrated poverty." I agree with this. The article goes on to state the exclusion, segregation and concentrated poverty is caused by unequal income. Poor people live in less expensive areas they can afford. It would make more sense to help them make more money so they can afford an apartment, living expenses, education ... This concept goes hand in hand with the recent false articles about appraisers appraising homes owned by black people for less than homes owned by white people. POC are more likely to have less money and buy less expensive homes in less expensive areas. The homes used in the data weren't even appraised by appraisers but by robots.

The article stated "Gentrification as the juxtaposition of the haves and have-nots." I see this every day. Someone with less money moves into an area with less expensive rent. Over time the city, businesses, neighborhood groups improve the blighted area as part of urban renewal and revitalization. New parks, streets, stores open as the area is cleaned up and improved. Sometimes the people demanding that the city improve the area are the ones who end up complaining about the improvement which increases property values and corresponding rent. Long time resident property owners are happy but not the tenants. Those tenants originally drawn to the blighted area for cheap rent now may have to pay a higher rent or move. This upsets them and causes them to protest, attack new businesses and new neighbors falsely claiming the new people are intentionally destroying their culture, history and language. The renters actually just want the money, homes and stores the new people have.

From the article, "It’s no wonder that people who have faced centuries of disinvestment grow angry as public and private money flows into their neighborhoods only after high-income, college-educated people choose to move there. Even if those people are not wholly responsible for the inequality, the blatant injustice is hard to ignore."

This is why some Latinos in Silver Lake attacked new white owned businesses and residents. What's ironic is in that area Latinos replaced Jewish people who replaced Asians who replaced Mexicans who replaced Spaniards who replaced Native Americans after stealing their land. Which one is the bad gentrifier? At least the people who came after the Mexicans bought the land and didn't steal it.

I'm positive that if you offered the current lower income tenants to either stop the revitalization and let the area become a more blighted but affordable slum or increase their income so they can afford a nice apartment in an improved area they would prefer to increase their income. This is the no brainer solution to the conflict. Help lower income people increase their income. The solution is not to stop urban renewal and revitalization. That would mean encouraging blight, crime and loss of housing units. From the article, "As George Washington University professor Suleiman Osman wrote in his 2011 book The Invention of Brownstone Brooklyn: “Stories abounded of renters [in Brooklyn] being pressured by landlords to leave revitalizing areas. But non-revitalizing blocks with high rates of abandonment and demolition saw rates of displacement that were just as high.”

The people moving into these less expensive areas don't just have more money. They are also more educated and different in other ways. This can cause friction with some people similar to what's happening in Texas with the California tech industry relocation. In Texas things are even worse because property tax goes up based on current market value. This means an elderly person who has lived in a house a long time now has to pay very high property taxes. They generally are forced to sell and move. At least in Los Angeles we don't have the same property tax issues.

Gentrification isn't always about people of color being displaced by white people. Again, Austin, Texas is one example, another is England. The tech industry is more diverse. People of color and wealthier more educated white people are displacing less educated, less wealthy white people in Texas. It's not a race issue but a wealth issue. Obviously the more wealth a family has the better education the children can receive.

A main issue of people who cry “fire, fire, gentrifier” is increased rent. That's not always the case. In Los Angeles, California we have rent control which prevents most of this. I've seen people who have stayed in their same cheap apartment since the '70's for this reason. During that time they've even bought homes which they rent to other people which doesn't really support the purpose of rent control.

"Overall, the research literature leans toward the view that gentrifying neighborhoods can lead to displacement, but they don’t have to. Gentrification can bring with it the promise of integration and sorely needed investment that can increase residents’ quality of life — but only if disadvantaged residents are set up to take part in the benefits of increased investment."

The article goes on to summarize the situation as "City by city, the message is clear: Segregation and concentrated poverty are the true blights of urban life, despite our fascination with gentrification." They're talking about segregating people with less money and not race. Here in Los Angeles and most of the US there is a correlation between people of color, immigrants and having less money. That's not the case in Texas, England ...

The article offers a solution to the real problem, "How to ethically create integrated neighborhoods. First, the economic literature is clear that increased housing production reduces rents. Second, tenant protection policies could help forestall some evictions. Third, rezoning of wealthy white segregated neighborhoods could slow the speed at which gentrifying neighborhoods change, and help tackle segregation. These types of interventions can provide a roadmap for how to ethically integrate urban neighborhoods."

By rezoning they mean allowing 2-4 units in some residential single family zones near public transportation. They're not talking about turning Beverly Hills estate neighborhoods into huge apartment buildings with only cheap studio units. Limiting homes to single family only zones is a more recent development in cities. Years ago in Los Angeles you could almost build whatever you wanted anywhere. By the 1900's the first developers and then cities limited zones to single family, 2-4 units, apartment buildings, commercial, industrial.... because that is what home buyers wanted. Some early examples are housing developments which had deed restrictions starting in 1903. The deed restrictions didn't have to do with race, color or nationalities but with the type of properties that could be built in the development. Some restrictions included quality, styles of homes, set backs, height, size... Only homes could be built in those residential developments.

The article ends with this, “Gentrification is a cultural sphere to work out feelings of resentment around inequality. ... Those feelings aren’t to be discounted,” Gottlieb argues. “This is a manifestation of a long-running sense of ‘I am not welcomed in the city, I don’t have a right to the city.’ Sometimes those feelings can be worked out in the cultural terrain of gentrification, even indeed if the people moving in aren’t the proximate cause for them leaving.”

We need to deal with the issue of "gentrification" for what it actually is which is revitalization. People pushed out of more expensive areas move into less expensive areas. The city, businesses and community improve and revitalize those areas. The revitalization must just be done ethically while still attracting new business investment to the area. Most importantly we must help people with less money improve their financial situation. This would help all of us and our community by solving the disparity of income, home ownership rates and home values among wealthy and less wealthy people. It's not a race but a financial issue. Fighting, NIMBYism and trying to stop all development is not the answer. That would just make the situation even worse for everyone.

Mary Cummins

Thursday, August 19, 2021

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.

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, form, no updates, condition, property, mary cummins, real estate appraiser, complaint,

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

Tuesday, August 10, 2021

In rising markets appraisers are called "deal killers." Today they're called "racists." by Mary Cummins

Real Estate Appraiser Deal Killer,

Back in 2013 we had a quick run up in prices similar to what's happening now. It was also caused by lack of inventory. Agents called appraisers "deal killers" but at least they didn't call them "racists."

Today's political climate has clearly changed. "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.

Here's a 2013 article talking about appraisers "killing" deals with allegedly "low appraisals." Agents always say this in every quickly appreciating market. It's not racism but appraisers using sold and not listed comps to determine value. We have to use sold comps by law. Sold comps were sold in the past. It can sometimes take a month before the deed is recorded and shows up in the comp services. We must have the recorded deed number and can't just trust the agent on MLS. We can adjust for time but we still can't go over the highest unadjusted most similar comparable sale.

https://www.marketwatch.com/story/how-appraisers-are-derailing-home-sales-2013-01-25

I could pull up a ton of articles during other runs ups which show people calling appraisers "deal killers" but not "racists." The racism claims are a new thing caused by the change in political climate. While I'm absolutely against racism I'm also against people falsely claiming racism when they don't get their way. One clear example of this is white New Yorker Amy Cooper who called 911 and falsely claimed a "black man" was threatening her when he wasn't. She was then fired from her job because of her criminal act of filing a false report to police. She's now suing for unlawful termination claiming, you guessed it, racism against her by her employer.

I'd like to think that some of these people just don't understand appraisal values. Maybe appraisers could do a better job of explaining things in the report. I'm thinking of adding a basic explanation of appraisal market value, process and regulations for potential non-professionals who are not the client or intended user but who may read the report for this reason. We make and write the report for the intended user which is the lender. It's listed at the top of the report. Potential buyers can receive and are sometimes provided with a copy of the report. They generally share the report with other lay people. Based on articles I've read they all misinterpret the reports and have no understanding of the appraisal value.

Real estate appraisers are equal opportunity "deal killers" in these markets. We appraise homes based on the characteristics of the home and not the owner, seller or buyer.

Mary Cummins

Monday, August 9, 2021

Measuring, describing land using metes and bounds, PLSS, lot and block and parcel numbers by Mary Cummins

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The original means of property descriptions and measurements in the US was the metes and bounds method. Metes and bounds was originally used in England for centuries then brought to the US with the first colonies. The "metes" are the length of the runs in a direction and the "bounds" are the boundaries. Below is an example of an older metes and bounds description of property one might find in a 17th century US land deed.

"Commencing at a corner at the intersection of two stone walls near an apple tree on the north side of Muddy Creek road one mile above the junction of Muddy and Indian Creeks, thence north for 150 rods to the end of the stone wall bordering the road, thence northwest along a line to a large standing rock on the corner of the property now or formerly belonging to John Smith, thence west 150 rods to the corner of a barn near a large oak tree, thence south to Muddy Creek road, thence down the side of the creek road to the point of commencement."

Modern day property measurement and description use the government survey system or Public Land Survey System PLSS. The PLSS system is based on set principle meridian and base lines across the US based on exact locations using longitude and latitude. Using the base lines the land is divided into sections, townships and ranges, see image above.

A section is one-square-mile block of land. There are 36 sections in a survey township. A township is a square parcel of land of 36 square miles, or a measure of the distance north or south from a referenced baseline, in units of six miles. See image below.

An example of the PLSS description would be "the Northeast quarter of the Northeast quarter of Section 10, Township 3 South, Range 68 West of the 6th Principal Meridian, Arapahoe County, Colorado" or "NE/4 NE/4 of Section 10, T-3-S, R-68-W, 6th P.M., Arapahoe County, Colorado."

In the city the most common type of legal property description and measurement is the subdivision tract, lot and block method. After describing land using PLSS it's further divided into smaller tracts of land which are then divided into lots and blocks via plat maps. A plat map, also known as a “plat,” shows you how a tract of land is divided into lots in your county. It is drawn to scale and records the land's size, boundary locations, nearby streets, flood zones, and any easements or rights of way. A plot map is a single plot or piece of land. Below is a description of real property using the subdivision and lot names and numbers. Subdivisions or tracts can have regular names such as "Highland Park" or use numbers.

Lots 6, 7, and the South ½ of Lot 3, West 60 feet of South ½ of Lot 4, West 60 feet of Lot 5 and Lot 8, Block 20, OLD SURVEY, Leesville, Vernon Parish, Louisiana.

If it were just one full lot in a subdivision, the description could be just TRACT # 14386 LOT 286.

We also use the Tax Assessor Parcel Number (APN) to describe property. The APN uses the Tax Assessor’s Book Number, Page Number and the individual Parcel Number. An example of a parcel number in Los Angeles county would be 4248-005-021 where the first four numbers are the book number, next three are the book page number and the last number is the parcel number. Below is an image which explains Los Angeles County plat maps. Click to see larger.

Here's a specific example of a Los Angeles county legal description and APN. I'm using a property that includes parts of two lots to make it more complex. The legal description is "WESTMORELAND HEIGHTS TRACT S 41 FT OF LOT 43 AND N 20 FT OF LOT 44." This is an old tract so it has a name instead of a number. The Assessor's Parcel Number is 5074-019-004. The last number of the APN is in the pink circle, i.e. 4. The red arrow is pointing to the specific piece of land. It's the south 41 feet of lot 43 and the north 20 feet of lot 44. You can see the measurements on the lot lines, i.e. 20' x 41'. You see a lot tie or hook symbol in between lots 43 and 44 which shows the lots are tied together. It looks like a tall "Z" like this image and can be angled like an italic "Z." Click images to see larger.

When you buy real estate you are actually buying only the land. Legally this entitles you to anything permanently affixed to the land. If you look at a real estate deed you will only see the legal description and the tax assessor parcel number. You don't see a description of the home or any other structures on the land. In the US the main types of land descriptions and measurements are the Public Land Survey System PLSS, lot & block description and tax assessor parcel map and numbers.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.

Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Mary Cummins

Sunday, August 8, 2021

We were one of the first real estate websites on the internet in 1998. Mary Cummins real estate appraiser Los Angeles, California

Mary Cummins real estate appraiser appraisal Los Angeles California first internet website, real estate

We had one of the first real estate websites on the Internet in 1998. It was the first to feature a real estate dictionary of common real estate words. We've been online 23 years so far and been in business since 1983. 38 years!

Realtor.com has been online since late 1995 so we're not the first real estate website ever. We went online July 1998. Maybe we're the first real estate dictionary in 1998.

Mary Cummins

Friday, August 6, 2021

First Interagency Task Force Meeting on Property Appraisal and Valuation Equity (PAVE) - PROBLEMS, by Mary Cummins

pave task force, hud, mary cummins, real estate appraisal, bias, discrimination, value, valuation, loans, fha, joe biden, white house, marsha fudge, meeting

The first White House Interagency Task Force Meeting on Property Appraisal and Valuation Equity (PAVE) was August 5, 2021. "Task Force members discussed how current appraisal practices are a significant contributor to the disparity in housing values. The practice of comparing properties within similar neighborhoods can be a proxy for racial demographics, which leads to the perpetuation and exacerbation of the legacy of segregation and redlining."

Racism exists. We should do everything we can to fight it. I fully support helping people of color buy and maintain homes. I've studied segregation, redlining and their effects on community. That said doing away with the main valuation method of assets used around the world would be ridiculous and destroy the economy and our government.

Matched pairs analysis is how ALL assets in the world have been valued since the beginning of civilization. It's how all real and personal property are valued, traded, insured, assessed for taxation purposes, bought, sold, used for loan collateral, used as a basis to settle court disputes... The government is the one who mandated that real estate appraisers compare like to most similar like. It's also called the sales comparison approach.

The purpose of the sales comparison approach using matched pairs analysis is to provide the "most accurate scientific measure of value." "The major supposition of the sales comparison approach is that market value of the subject is related to comparable property values within the same market area." This is how real estate agents and sellers determine a list price for a property. It's also how agents and buyers determine an offer price for the property. This is how the tax assessor assesses your property for taxation purposes. The sales comparison approach is the most accurate method to value homes for many purposes.

Based on what has been said by the Task Force members so far I am betting that they want appraisers to use only HIGHER sold comparables from areas with more valuable homes to appraise lower valued homes in areas with a higher percentage of POC. I am assuming this will only be for government and government insured appraisals, loans for POC but am not certain if it will be for everyone in certain areas of lower valued homes. Private banks and lenders would never go for this. Everyone knows the value of property is based on three main things, location, location, location. There are clearly major problems with this approach.

The actual value of property. "The fair market value is the price a home would sell for on the open market under normal conditions." Even if the government forces appraisers to use sold comparables from homes in Beverly Hills to appraise homes in East Los Angeles that will never fool home buyers or sellers. If you want to buy, can afford to buy a $100,000 home, you will look at homes for sale around that price range in an area you like. You buy the home with $10,000 down. It appraises at $100,000 which is market value determined by an appraiser. You get sick, lose your job, sell your home or lose it in foreclosure. It sells for $100,000 and the $90,000 loan is paid off.

Let's say instead you offered $100,000 on a home with $10,000 down payment but the appraiser said it was actually worth only $50,000. If you buy it for $50,000, you're okay. Instead you demand another appraisal using sold comps in a more valuable area maybe a beach front property to appraise a tear down shack in Pacoima. The next appraisal is $100,000. You again get sick...You couldn't sell it for more than $50,000 or were foreclosed upon. The bank just lost $40,000 which you now owe to the bank even though you have no home. Many of these loans are backed by the government. The government aka the taxpayer loses that money. The banks and government are in trouble when this happens to many people like it did during the Great Recession of 2008. We are at a home price peak so this is a major concern.

I bring up this example because this would be mortgage fraud. The appraiser and lender would be complicit. This actually happened and people were criminally convicted of fraud. One such case was Victor Noval who defrauded the US Government HUD of $60,000,000 in this scheme. They used HUD money to buy property whose value was inflated by a con artist appraiser using higher sold comparables in other superior areas and other tricks. HUD Secretary Andrew Cuomo stated in response to this crime in 1997 per the Los Angeles Times "Any con artist who tries to rip off HUD and the American taxpayer will be caught and prosecuted to the full extent of the law." The taxpayer ends up paying for any loss in government backed loans. Any program to artificially inflate the value of homes to secure government insured funding would be bank fraud and fraud against the government. For the government itself to suggest these federal crimes is ludicrous!

Another thing to consider is that lenders make the loans then sell them so they can use that money to make more loans. No one would buy the loans if there is no market value appraisal. No one would know what they are worth except less than the loan amount. They'd sell at a huge discount if they could be sold at all. Investors also bundle these bank and government insured loans as mortgage backed securities and sell them in the secondary market to pension funds, investment funds... Again, what are they worth? We have no idea because there is no appraisal of its real market value. Generally investors look at market value of the property, loan to value ratios, loan balances, rates, equity, payment history, loan delinquency rate ... to determine value of the investment. No one would invest in these loans if they have no idea what they are worth. That's money lost for new home loans. Now new home buyers can't buy homes. You just shot yourself in the foot.

Let's say investors invest in these loans anyway and the economy flounders. People are foreclosed upon and lose their homes which sell for less than the loan balances. The banks and government lose money on the loans. Homeowners still owe the balance of the unpaid loans. The mortgage backed securities also sell on the stock market causing the stock market to dump. This happened in the Great Recession when all those loans went south. The banks and Wall Street had to be bailed out. Government then had to develop new regulations to make sure this wouldn't happen again. Here's an idea. How about not starting new programs which set homeowners, banks, investors, taxpayers and the government up for failure from the start.

What if POC in areas with mainly POC get a higher appraisal and then a larger loan using this new appraisal method? Do you raise their tax assessment value and taxes? That would raise the property taxes of neighbors pushing out poor and elderly people. Because home value correlates with home rent it would also raise corresponding rent of non owners who would have to move. Can wealthy people use this same new appraisal method to lower the value of their property to pay less property tax, give their spouse less in a divorce settlement or give the government less in capital gains taxes? What happens when POC get a bigger loan because of the higher appraisal but they can't afford to make the payments and lose their home? That happened during the Great Recession when home values appreciated quickly for real. While members of the Task Force stated POC would take that new make believe home equity money and invest in college educations, new businesses, health care, home improvement or retirement accounts to improve their financial situation and the community they invested in personal items instead. Our nation is still recovering from the Great Recession. This new appraisal method would open up an economic Pandora's Box while home prices and real home equity are already increasing rapidly.

The Task Force has 180 days to come up with a real plan. I hope someone who knows something about real estate appraisal, investments, loans and the economy speaks up before then. If not, it's the home buyers, home owners, banks, government and taxpayers who will be hurt by this mess of an idea.

#pavetaskforce #hud #realestateappraisal #bias #discrimination #value #valuation #homeloans #loans #fha #joebiden #whitehouse #marciafudge #meeting #August52021 #PropertyAppraisalandValuationEquity #PAVE #segregation #redlining #racial #occ #ftc #fdic #cfpb #fhfa #asc #susanrice

The rest of the press release is below. It's also linked.

"The group identified near- and long-term opportunities to advance equity in home appraisals that will help narrow the racial wealth gap and reinvest in communities that have been historically left behind. The Task Force Members will work together and consult with civil rights organizations, advocacy groups, industry, and philanthropic entities to drive change.

Additionally, Task Force members agreed that the scope of the Task Force will be to:

Ensure that government oversight and industry practice further valuation equity;

Combat valuation bias through educating the consumer and training the practitioner;

Ensure equity in valuation by making available high-quality data;

Create a comprehensive approach to combating valuation bias through enforcement and other efforts.

The Task Force is chaired by Secretary Fudge and Ambassador Rice, and includes cabinet-level leaders from executive departments and additional members from independent agencies. The Task Force will deliver a final action report within 180 days.

The Task Force membership is comprised of the following officials: (I added their names)

Secretary of Housing and Urban Development (co-chair) Marcia Fudge

Assistant to the President for Domestic Policy (co-chair) Susan Rice

Director of the National Economic Council Brian Deese

Attorney General of the United States Merrick Garland

Secretary of Agriculture Tom Vilsack

Secretary of Labor Marty Walsh

Secretary of Education Miguel Cardona

Secretary of Veterans Affairs Denis McDonough

Comptroller of the Currency (OCC) Michael Hsu

Chairman of the Board of Governors of the Federal Reserve Jerome Powell

Chairman of the Federal Trade Commission (FTC) Lina Khan

Chairman of the Federal Deposit Insurance Corporation (FDIC) Jelena McWilliams

Chairman of the National Credit Union Administration and the Federal Financial Institutions Examination Council Todd M Harper

Director of the Consumer Financial Protection Bureau (CFPB) Dave Uejio

Director of the Federal Housing Finance Agency (FHFA) Sandra L Thompson

Appraisal Subcommittee (ASC) James Park

https://www.whitehouse.gov/briefing-room/statements-releases/2021/08/05/readout-of-the-first-interagency-task-force-meeting-on-property-appraisal-and-valuation-equity-pave

Mary Cummins

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

Thursday, September 9, 2021

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