You’ve saved for years, renovated your home, and now you’re ready to refinance—only to get an appraisal that’s shockingly low. If this sounds familiar, you’re not alone. Appraisals aren’t just about square footage or upgrades; they’re deeply tied to race and neighborhood demographics.
In this post, we’ll uncover:
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How appraisal methods quietly reinforce inequality
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Why identical homes in Black and white neighborhoods get wildly different values
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What homeowners can do to fight back
The Appraisal Bias Problem
Research shows a disturbing trend: A home in a majority-Black neighborhood is often appraised for less than the same home in a white area, even if the features are identical.
Why? Traditional appraisal logic still leans on "comparables" (nearby home sales), which means:
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If your neighborhood was historically redlined, today’s appraisals inherit that devaluation.
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Racial bias creeps in when appraisers (often unconsciously) associate white neighborhoods with "higher quality."
The result? Families of color lose out on:
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Equity: Lower appraisals mean less wealth to borrow against or pass down.
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Refinancing opportunities: If your appraisal comes in low, you can’t tap into your home’s full value.
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Resale potential: Future buyers see a history of undervalued sales, perpetuating the cycle.
Real Stories, Real Consequences
Imagine this:
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A Black family renovates their home, but the appraisal ignores upgrades because the "area doesn’t support" the value.
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A white family in a similar home gets a higher appraisal because the neighborhood is "desirable."
This isn’t hypothetical—it’s happening now. Dr. Elizabeth Korver-Glenn’s research found these gaps aren’t shrinking. In fact, they’re growing, even after accounting for historical redlining.
How to Challenge the System
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Demand Transparency
Ask appraisers to explain how they picked comparables. If they skipped nearby homes with higher values, question why. -
File Complaints
If you suspect bias, report it to the Appraisal Subcommittee or local fair housing groups. -
Support Alternative Models
Organizations like ERUKA are developing appraisal methods that ignore race and focus on the home itself.
Watch the Full Discussion
For a deeper dive into appraisal bias, watch this segment:
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