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Listing agents must be very careful about the details of a home and how it is presented to potential buyers. Top agents often have their own checklists with proven tasks and recommendations for home sellers to help them prepare their homes for the best offer.
But what happens when your homeowner seems to be doing everything right, but the tried and true listing fails?
- Curb Appeal – Coops
- Go with neutral tones and organize – Check
- Competitively priced based on latest home sales/comparisons – Check
So why is this homeowner undervalued in such a competitive real estate market?
Uncovering the truth about low-priced appraisals may surprise you; even in 2024, homebuyers are still facing this problem.
Still undervalued despite fierce market competition
A big picture in the room of being undervalued when selling your home comes from unfair housing practices.
Yes, we now have fair housing laws, most landmark of which began in 1968, exciting The Rev. Dr. Martin Luther King Jr. was tragically assassinated. However, the law is not “Disney magic.” In other words, the law does not mean that all violations will cease immediately.
The belief that the law stops illegal behavior is the biggest myth I continue to have to dispel with people in the industry and everyday community members.
To explain this common misconception, I would like to cite how Dateline and true crime podcasts show that even though kidnappings, murders and other crimes are illegal, they still happen.
The law simply means that if someone is arrested and there is enough evidence, that person may face some kind of punishment. Illegal and unfair housing practices are no exception.
So we would be wise to launch a fair housing version of “The Talk” to ensure homeowners sell. I know that when we say “talk,” a lot of people think of “the birds and the bees,” but there’s another kind of conversation that’s critical to what I call a fair housing decoder (one who seeks to advocate rather than alienate) .
Why “talk” is important
I’m curious and grateful for the comments left on a recent article I wrote for HousingWire. My empathy (the “E” in decoder abbreviation) kicks in, so hear me out.
John Baldwin
How do you conclude that past discrimination by the federal government, lenders, and real estate agents is the fault of current real estate appraisers? We are hired to provide an unbiased opinion on the current market value of a particular property in its market area. We cannot ignore sales in the same market because of past discrimination. We don’t care who might occupy the property. We’re tired of being falsely accused of bias when we’re just doing our jobs.
I’d like to highlight a few words left by this commenter that may resonate with many in our industry – myself included:
- “fault current…”
- “we are getting sick and tired We are wrongly accused of bias when we are just doing our jobs”
Let’s discuss these issues specifically and his full comments.
First, let’s review the current data to demonstrate that unfair housing has not disappeared with the seemingly “bibbidi bobbidi boo” of the legislative pen. Sadly, this still happens.
This is the data This suggests that while homes should have been appraised higher in years past due to the rate of market appreciation, some sellers may be undervaluing their homes because of the protected category.
Also, here are some first hand information.
As a nerdy author, I always link to the data if you have time to look at the data set, but I know the raw data is sometimes skipped because it tends to be too technical. That’s why I try to share personal stories as well, especially through videos like the link above.
While unfair housing may not be a situation that every appraiser encounters, there is still a need to have a “conversation” to increase awareness and understanding among community members.
Taking the initiative to raise awareness is preparation, and preparation is not a waste of time. At their core, they are cautionary tales, and we would be wise to heed them without having to go through “the hard knocks.”
The same goes for most violations, including unfair housing. Therefore, do not personalize documented issues— we have not participated —While I’m frustrated, I want to encourage us to be proactive agents of change.
If you did not participate in unfair housing, you are not guilty or at fault for past incidents. However, the broader significance of the Fair Housing Initiative is that we all have a responsibility to ensure that everyone has equal access and opportunity as we move forward.
In short, we can confirm to our customers: “This is a problem, but I want you to be vigilant.”
Essentially, we can acknowledge the problem and reassure people that it won’t happen on our watch. Interestingly, this became a key principle for business growth (the community knows, likes and trusts you). Therefore, proactively raising awareness is a key marketing and business growth strategy and a win-win promotion strategy. Shh!
Become a Fair Housing Decoder
First, sellers should know how much homes are selling for in their area. As their real estate expert, you can provide updates on home sales (comparisons).
Second, unfortunately, “staging” a home for an appraisal may mean having someone from an opposite protected class stand in for the actual homeowner. Of course, staging a home should only involve neutralizing the property, not the people who own it.
However, since the 1940s and 1950s, often the only way to determine unfair housing (and lending, including undervalued appraisals) was for testers (akin to secret shoppers) from various protected classes to step in and pretend to be the homeowners (e.g. Christian vs. Muslim, white vs. black, disabled vs. disabled, male vs. female, single vs. single with children, etc.).
Fair housing testers are sent out every year local fair housing agency Unfair housing found (but many offices need volunteers). The law does not prevent the need to disclose discrimination, but it provides a degree of remedy if it is exposed. This knowledge is the only power to the customer.
If you’re not sure if your “Spider-Sense” is correct and want a consultation before heading straight in heads up displaystarting from:
Third, follow your instincts and document and report any instances of unfair housing. Often, unfair housing can continue unchecked because it often goes unreported.this National Fair Housing Alliance It is estimated that although there are over 30,000 reports of housing discrimination each year, this may only account for 1% of actual fair housing violations.
Lee Davenport is a licensed real estate agent, trainer and coach.follow her Youtube or visit her website.
