Black Americans frequently face challenges achieving homeownership, even in areas with large Black populations, according to a recent report from LendingTree. Those fortunate enough to overcome the financial hurdles of homeownership may face a different obstacle: appraisal discrimination.
In its latest report, LendingTree surveyed 2,100 consumers and asked about their home appraisal experiences. The report found that more than one in five Americans who’ve had to get a home appraisal believe the value was too low. Nearly a quarter (21%) of those homeowners suspect the subpar value was based in part on their race, gender, sexual orientation or religion.
Key findings:
- Overall, 23% of homeowners think a home appraiser has lowballed them.
- Of those who’ve had a home appraisal, 32% of Black and 31% of LGBTQ+ homeowners believe they were lowballed, compared with 22% of white and heterosexual homeowners.
- Despite anti-discrimination laws, 58% of Black homeowners believe their race, sexual orientation or another protected demographic was factored into the appraisal.
- One in four Black homeowners who’ve ordered a home appraisal worked to conceal their race or other protected demographic, from the appraiser. Just 11% of white homeowners have done the same.
The takeaway:
“If you’re a homeowner who has put a lot of money into improving your home and you get an appraisal back that isn’t much higher than what you paid, or if the house down the street sold for tens of thousands more than what an appraiser thinks your home is worth, then it might seem reasonable to assume your home is being undervalued,” said LendingTree’s senior economic analyst, Jacob Channel.
To view the full report, visit: https://www.lendingtree.com/home/mortgage/home-appraisal-survey/
