Submitted by YouAreADadJoke t3_10py2lz in baltimore
JBG1973 t1_j6nx4ck wrote
Googling a few more articles about this case leads to the address:
https://www.housingwire.com/articles/appraisal-firm-loandepot-sued-by-black-couple-for-bias/
The issue in this case is that the house is on the corner, and the address is not on Northern Parkway. This is the section of Northern between Charles and York, not the section between Charles and 83 which is 6 lanes rather than 4 lanes.
The fact that it is on the corner and has a driveway/garage and sidewalk access from a corner street is more desirable than if it was in the middle of the block on Northern.
The house at the center of the dispute:
The computer estimate from redfin is $627,550. The state assessment for 1/22 is 622,000.
4 beds, 3.5 bath, 2600 square feet finished, 11, 395 square feet land. They have made "tens of thousands" of improvements since the initial purchase, although I have not seen any updated pictures of specifics since the listing photos when they bought it.
Across the street and still on Northern:
Sold 2/4/21 for $450K. Redfin currently estimates it at 495,900 It was assessed at $462, 300 by the state at the same time the house in question was. It has 1930 square feet, 2.5 baths, and 10, 772 square feet of land. I don't see the bedrooms listed. This house has a "newer gourmet" kitchen with the heavy tile that is now considered very out.
The house in question in the article that sold next door had a new kitchen (we don't know what improvements the couple in question made) and 1970's bathroom. To get to this house you will need to enter the back door through the kitchen and walk around the house to get to the front door. This is different than the house in the center of the controversy in which you can park on the side of the house and take a direct sidewalk to the front door.
The comp that sold for $465 on 8/21/21 is now listed on Redfin at $526 and is assessed by the city at $487,000. It has 2.5 baths, beds not listed, 1750 sq feet above grade living area and 12671 sq foot lot.
In order to get a 472 appraisal compared to the house that sold at the same time for $465 gives $7 k for an additional 950 square feet of living area, an additional bathroom and side access to the front of the house without stopping on Northern Blvd (which I believe is no parking). 140 square feet of sunroom reduces the additional square feet from 950 to 700.
It is hard for me to believe that the $472 appraisal was particularly accurate. The $750 appraisal does not appropriately address the Northern Blvd problem. However, I have seen plenty of appraisals for houses on busy roads that do not properly knock of for how undesirable busy roads are.
It is more likely that the "staging/impression of who lived there" led to a 10% devaluation than the 50% devaluation that the NY times claimed. It is hard for me to understand that someone would buy $750K for a house on Northern with a very dated 1949 façade. You have a lot of options at that price and the houses behind it completely on Churchwardens were selling for less.
While not headline grabbing, a consistent 10% devaluation of property values for black homeowners has pretty significant long term consequences for building wealth.
Viewing a single comment thread. View all comments