A recent analysis shows a positive shift in home equity appraisals, indicating improvement in appraisal fairness. It has shown that there is a racial gap in appraisals with minority neighborhoods receiving lower valuations than majority-white areas. Efforts by the Property Appraisal and Valuation Equity (PAVE) task force have contributed to a decrease in low appraisals in minority areas over the past two years, according to the latest Federal Housing Finance Agency data. Although there’s still a notable gap, the difference has lessened by 2.9 percentage points between white and minority tracts over the past two years.
Real estate agents, brokerages, and teams must stay informed and advocate for fairness in the appraisal process to ensure equitable housing opportunities and build trust with diverse clientele.