Addressing Bias in the Home Appraisal Process for Sellers

Selling your home can be a daunting process. Home appraisal plays an important role in the home selling process and can be one of the most anxiety-inducing steps for homeowners. Addressing bias in the appraisal process is essential to ensure that buyers and sellers receive a fair, accurate assessment of a home’s value. Bias can be both implicit and explicit in nature, and range from perceived market value bias to racial or gender-based discrimination. It is important for appraisers to take steps to identify, understand and address potential bias in their appraisals. Doing so can result in better outcomes for prospective sellers, with higher sale prices due to a more accurate appraisal.

Moreover, addressing bias in appraisals can help ensure that all parties involved are treated fairly. The Department of Housing and Urban Development recently announced it is creating a process that people seeking FHA financing can use to request a review of their appraisal if they believe the results may have been skewed by racial bias. For example, a homeowner who is in the process of refinancing their home with an FHA-insured mortgage can take steps to ensure that their appraisal is fair.  Beyond creating a more equitable process, eliminating bias from the home appraisal process can help create confidence in the accuracy of a property’s assessed value. This can eliminate surprises during negotiations and can help avoid lengthy and costly sales processes.

Ultimately, taking steps to actively address and remove bias from the appraisal process can help create a more efficient and equitable experience for all parties involved. Accurate appraisals that reflect true market value can result in smoother transactions and higher sale prices for prospective sellers.

For guidance throughout the process, reach out to our team of trusted advisors. We’re always keeping up to date with the latest regulations, market trends and are fixtures in the areas we service!