Other Estimates for A Home In Indianapolis

[myrdale]

So a story was linked in another thread about a black lady in Indianapolis who claims she was discriminated against by two separate home appraisers who estimated the home to be worth $110,000 and $125,000. It was only after removing all art and photos from her home, and having a white male friend speak with a third appraiser, that she got an appraisal she believes is accurate at $259,000.

This post is not about disputing the intent of the first two appraisers, it is simply about the house itself. I am curious what you would value the house as.

In the television interview, an exterior photo of a house is shown, and a street sign. From Google Maps Street view the home is quickly located. From there it is on to Zillow.

The home was built in 1955. There was a fire at some point. In 2015 the house sold for $10,000. The house then sold again in 2017 for $110,000.

Zillow currently estimates the value of the home at $133k. This is the second highest valued home in the neighborhood. Of the 26 homes in the view, 17 of the homes are estimated at <$100,000.

Homefacts has an estimated value of $99k.

Realtor.com list the area as a high crime area, though Homefacts list the neighborhood crime rate as low.

Now keep in mind, I am not a realtor and I am sure there are errors in Zillow. But with all that said, where should the price of this home truly fall?

[TexasHusker]

It's really hard to know from Zillow. In many states, the sales prices of homes is confidential, therefore Zillow can only base their estimates on the tax appraisal. Generally, though not always, the tax appraisal is significantly less than actual fair market value. Certainly, it appears the home should be valued in the same range as the two houses above it. Difficult to say with any certainty.

It does sound a bit far-fetched that not one, but two appraisers dramatically under-valued her house, and did so because of the color of her skin. I am not saying that isn't possible, but that's a pretty wild claim. Usually, there is more to the story that we aren't getting. Sensationalism sells.

[james.hendrickson]

It's really hard to know from Zillow. In many states, the sales prices of homes is confidential, therefore Zillow can only base their estimates on the tax appraisal. Generally, though not always, the tax appraisal is significantly less than actual fair market value. Certainly, it appears the home should be valued in the same range as the two houses above it. Difficult to say with any certainty.

It does sound a bit far-fetched that not one, but two appraisers dramatically under-valued her house, and did so because of the color of her skin. I am not saying that isn't possible, but that's a pretty wild claim. Usually, there is more to the story that we aren't getting. Sensationalism sells.

Then how do you explain the difference in the appraisals?

[TexasHusker]

Then how do you explain the difference in the appraisals?

Really hard to say without knowing all of the facts. I haven't kept up with this story. Are all of the facts known? Zillow can be hit-or-miss.

[ua_guy]

Zillow is an estimation tool of limited value. Comp data is more telling. What have recent comps gone for in the area?

The home may be hard to appraise for lack of comparable homes. If it was rebuilt after the fire using modern materials, nicer finishes, and built to modern building code, that could be worth something more and it could also change what comp data is allowable in the report.

I have to imagine the story is much more complicated. And I wouldn't find it unbelievable if there were other factors to consider.

Edit: The picture basically gives away the location and address of the home in question. Do we really want to identify that here on the forum?

[TexasHusker]

Zillow is an estimation tool of limited value. Comp data is more telling. What have recent comps gone for in the area?

The home may be hard to appraise for lack of comparable homes. If it was rebuilt after the fire using modern materials, nicer finishes, and built to modern building code, that could be worth something more and it could also change what comp data is allowable in the report.

I have to imagine the story is much more complicated. And I wouldn't find it unbelievable if there were other factors to consider.

Edit: The picture basically gives away the location and address of the home in question. Do we really want to identify that here on the forum?

Public record so I don't know that it makes any difference.

But as you mentioned, appraisals can be complicated. One of my vacation rental's values went up over 60 percent in a single month. That's because there had been no comparables sold to it in several years, then suddenly there was a house about a half mile away that sold.

It would take a pretty slimy appraiser to mark a home at half it's fair market value because the owner is a particular race. One would think that even the most racist person wouldn't be dumb enough to do that, and risk losing their license, reputation, and livelihood. Much less two of them simultaneously. Pretty far-fetched, though I suppose not impossible.

[myrdale]

Edit: The picture basically gives away the location and address of the home in question. Do we really want to identify that here on the forum?

It's a national story. The lady gave her name on national television. She had the television crew at her home. Video of the home and street signs were shown on national television. There are news reports which spell out the name of the neighborhood.

Figuring someone might state a concern such as yours I erased the street names. I additionally zoomed in close enough to avoid any local land marks.

If you had ill intent, good luck finding the location with that photo alone.

Without the photo, you'd just have to take my word for it that a $259,000 property is bordered by three houses worth <$90,000 or that Zillow has the house estimated as $133k.

[ua_guy]

If you had ill intent, good luck finding the location with that photo alone.

I was able to make out the street names to find the exact address using the screenshot you posted in about 0.2 seconds. If you're going to cover something, actually cover it up.

If you look at the surrounding comps, it would appear the value might actually be closer to 200k+ There is almost no data in the surrounding neighborhood, but there is plenty of data a little farther out.

I am not a home appraiser or realtor, so my educated guess would not be in a professional context.

A single example does not prove the situation either way.

[TexasHusker]

It's a national story. The lady gave her name on national television. She had the television crew at her home. Video of the home and street signs were shown on national television. There are news reports which spell out the name of the neighborhood.

Figuring someone might state a concern such as yours I erased the street names. I additionally zoomed in close enough to avoid any local land marks.

If you had ill intent, good luck finding the location with that photo alone.

Without the photo, you'd just have to take my word for it that a $259,000 property is bordered by three houses worth <$90,000 or that Zillow has the house estimated as $133k.

Myrdale, PM me.