Why might it be problematic to use properties from predominantly Black neighborhoods as comparables for a Black homeowner?

Using properties from predominantly Black neighborhoods as comparables for a Black homeowner can suggest a discriminatory appraisal practice because it reinforces systemic biases and assumptions about value based on race. Relying on these comparables may imply that the value of the homeowner's property is inherently linked to their racial background or the racial makeup of the neighborhood, which can perpetuate the cycle of discrimination in real estate practices.

This approach does not consider the unique characteristics of the subject property or the specific market dynamics of the area in which the homeowner resides. The application of such comparables can lead to undervaluation and can further entrench disparities within the housing market, contributing to a negative impact on wealth accumulation for minority homeowners.

Additionally, beyond the issue of discrimination, using these comparables may also fail to accurately reflect market conditions that are more competitive or favorable in other areas where the subject property is located. Thus, the primary concern is that such practices contribute to bias and inequity, rather than reflecting an objective analysis of property values.