Submitted by 0716718227 t3_zbjpbw in philadelphia
Indiana_Jawns t1_iys8u9g wrote
Reply to comment by PurpleWhiteOut in Lowballed: Philadelphia-area homeowners of color receive unfair appraisals by 0716718227
High taxes are definitely better than continued institutional devaluation of minority neighbors that leads to a generational wealth divide. This is just modern day redlining.
jorge1209 t1_iysb12b wrote
Appraisers don't set the market price, buyers and sellers do during transactions.
Appraisals depend on the other transactions in the area that closed. If the offer is way above that average the appraisal will come in low.
There is a reinforcement effect from low sales prices on comps to low appraisals to lower approved loan amounts back to lower sales prices. The way out of this cycle is "cash offers". When wealthy people come in and throw cash down, prices rise and appraisals do too.
Minority communities don't have the stock market wealth that other communities do. The last decade of rock-bottom rates has increased the wealth of the already wealthy faster than those whose we wealth is tied more to their family home.
It isn't redlining although it is a really problematic economic situation.
PurpleWhiteOut t1_iys93kd wrote
Of course I 100% agree and fixing this will create a ton of wealth. I can imagine it would come as a shock to people not trying to sell.
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