What’s next for the maligned real estate appraiser?
The twofold problem with residential real estate appraisals have become well-established. One is an array of well-publicized stories of appraisers undervaluing a home because the homeowner is Black. The other, arguably related issue, is that the ranks of U.S. appraisers are perilously thin and the profession is dominated by white men, whose average age is 61, according to the Appraisal Institute.
In this episode of Houses in Motion, a series that is part of the HousingWire Daily podcast lineup, St. Petersburg, Florida-based appraiser Francois “Frank” Gregoire discusses both these issues, but also dives into specifics about what professional appraisal organizations, the federal government and individual appraisers can do to address them.
Here is a small preview of the interview, which has been lightly edited for length and clarity:
Frank Gregoire: One of the most important things is going to be increasing opportunities in the appraiser workforce. And that is what the National Association of Realtors has concentrated on with a special work group over 2021. We had a work group in 2020 that was created mainly in response to the newspaper and television stories alleging discrimination. And what that work group asked for was data. Essentially, what I talked about before we got the allegations, let’s see something so we can find out what in the world is going on here. The reality is the data is held closely by Fannie Mae and Freddie Mac, Freddie Mac has given us a peek at the result.
Matthew Blake: What do Fannie Mae and Freddie Mac have that you guys specifically want?
Frank Gregoire They’ve got the appraisal reports! They’ve got the contract prices, they’ve got the terms of the contracts, they’ve got the information about the size, age, quality and condition of the subject property and the comparable sales, they have the final opinion of value. In the case of a refinance, they know what the loan amount was. We can wish all we want. I don’t think we’re going to see that data.
HousingWire Daily examines the most compelling articles reported across HW Media. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsrooms that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Elissa Branch. If you have a pitch or an inquiry relating to podcasts, you can reach our team at [email protected].