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Oakland father’s home valued at $150,000 more when white-passing friend stood in for him after a low appraisal

Oakland, California (KGO)-ABC7 News continues to lead responsibility for investigating potential discrimination in the home appraisal process. The Bay Area color family feels that the home is too underrated and is upset, believing that skin color is a major factor.

Now another homeowner shares his story with the ABC7 News Race and Culture Reporter Julian Glover..

“I deal with discrimination at work and discrimination elsewhere, but it’s very insulting for it to happen in your home,” said Saleem Shaheed.

Relation: Black East Auckland homeowners beat the system after keeping $ 155K low on the valuation

Single-father Shahid bought his home near 98th Street and Sunnyside Street in East Auckland in 2019 for $ 430,000.

As soon as he saw the property, he learned that the house would become his own, thanks to the help of his two children.

“When my kids saw it, they were like’it’s one’,” Shahid said. “My children have made a decision for me.”

After moving, he knew that the house needed repair work and he was eager to improve his property.

video: Black California couple believes race-based, $ 500,000 downturn in home appraisal

“We built a new roof, rebuilt the children’s bedroom, rebuilt the stairs, and put a new gate with an automatic opener in front,” Shahid said.

During the pandemic, the value of real estate steadily increased and interest rates fell as he improved his home.

Shahid decided to refinance his mortgage to beat his current rate.

The first appraisal ordered at home in November 2020 came in at $ 575,000 after filing a counter-argument calling for a reassessment of value following the initial report.

However, Shahid was convinced that another lender could find a better rate.

After shopping at a more competitive rate, he received a valuation of $ 480,000 in January of this year while applying for an FHA loan.

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“It’s hard to prove what the other gentlemen’s intentions were, but even if it was just negligence or incompetence, it was at a level where it had to be something more,” Shahid said.

The appraiser refused to raise the appraisal value, even though Shahid requested a reassessment of the value and filed a complaint with the California Real Estate Appraisers Department.

Initial reports incorrectly stated that the house had one bathroom instead of one and a half, even though Shahid notified the appraiser a few months ago before replacing the roof. “There have been no updates in the last 15 years,” he claimed.

ABC7 News contacted the appraiser several times over the phone, but did not receive a reply.

The e-mail described in the appraisal report has been returned.

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Shahid was able to get a new reputation by sticking to the lender and applying for a traditional loan.

This time he made a plan. He recalled ABC7’s coverage of the Austin family in Marine City staged the house to make the inhabitants look white.

ABC7 News interviewed Austin in February to share their story about alleged discrimination in the appraisal process.

The property was valued for an additional $ 493,000 after Austin exchanged photos and artwork throughout the house on behalf of a white friend.

“That’s why I want to share my story, because seeing those stories helped me through the process,” Shaheed said.

A friend of Shahid, a real estate agent, helped him stage his house.

Relation: The West Auckland family has surpassed the low rating of $ 70,000 with the help of ABC7 News.

“You may want to take a picture, or you may want someone to intervene and be there during the actual evaluation. Just what we know will devalue your home. It’s possible, “says Bneeisha Williams.

Shahid then asked his colleague’s white-passing daughter to take his place on the day of the appraisal.

“I’m half white and half Asian, but I have as many privileges as a fair-skinned person,” said Jade Le, the daughter of his colleague. “Why can I use my privileges to do something or help others in the community?”

The house was valued at $ 630,000: two valuations, with a difference of $ 150,000 at intervals of just two months, Shaheed believes it is primarily racial.

“It feels bad for someone to come and stop by, and suddenly you get higher value,” he said.

After pouring the report, the big difference we noticed is the equivalent house chosen by the appraiser.

The average adjusted home price for the six comps listed for the January valuation is $ 428,000.

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Compare it to the average adjusted home price of $ 625,000 in the April valuation.

The comps selected by the January appraiser were worth $ 197,000 less on average.

Equivalent homes in the same report also focused on the areas north and west of Shahid’s property.

The April appraisal house was pulled from all directions: north, east, southwest, and west.

Ten months later, Shaheed hopes to eventually be able to refinance real estate to lower mortgages and help pay for additional improvements.

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He also hopes that joining the list of families sharing stories with ABC7 News will lead to a solution.

“But it’s a shame that so many people get together and everyone gets together. I think that’s the only way real change can happen,” says Shaheed.

If you are refinancing and feel that your rating is low, it is your right to review the report, then challenge the report and ask the lender to reassess its value.

You can also file a complaint with state and federal agencies if you feel that you have been mistreated by an appraiser.

This is the website File a complaint with the California Real Estate Appraisal Agency.

This is the website File a complaint with the Department of Housing and Urban Development.

You must file a complaint with the HUD within one year of the incident.

You must file a proceeding two years after the case.

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