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How real estate left neighborhoods behind

Real estate has long been regarded as a cornerstone of economic growth and development in the United States. However, the relentless pursuit of profit and the changing dynamics of the housing market have resulted in the unfortunate neglect and abandonment of neighborhoods across the country. In this review, we will delve into the ways in which real estate practices have left neighborhoods behind, examining the consequences and potential solutions for this pressing issue.

The Rise of Real Estate Investment:
In recent decades, real estate investment has increasingly become detached from the notion of creating vibrant, sustainable neighborhoods. Instead, it has primarily focused on maximizing returns for investors. Large-scale developers and institutional investors have entered the scene, driving up property prices and prioritizing profit over community well-being.

Gentrification and Displacement:
One of the most evident outcomes of this real estate shift is the phenomenon of gentrification, which has led to the displacement of longstanding residents and the erosion of established neighborhood cultures. As property values rise, lower-income families and small businesses are forced out, replaced by wealthier residents and corporate chains. This process disrupts social cohesion and exacerbates economic inequality within communities.

Neglected Infrastructure and Services:
Another consequence of real estate's neglect

Generally, "blockbusting" denotes the real estate and building development business practices which both profit and are fueled by anti-black racism.

What is the term Blockbusting?

Block·​bust·​ing. : profiteering by inducing property owners to sell hastily and often at a loss by appeals to fears of lowered values because of threatened minority encroachment and then reselling at inflated prices. Note: Many states have statutes prohibiting blockbusting by real estate agents.


Why are houses so cheap in Memphis?

Memphis has a low cost of living, 24% less than the national average, meaning it costs a lot less to cover a person's basic living essentials, including rent, food, health care, utilities, and transport. A largely affordable city helps maintain lower housing costs.

What was the first black neighborhood in America?

Tremé, a historic community just north of the French Quarter, is the oldest African American neighborhood in America. In the 18th and early 19th centuries, free persons of color and eventually those African slaves who obtained, bought or bargained for their freedom were able to acquire and own property in Tremé.


What does puffin mean in real estate?

"Puffing" is a term used in real estate to refer to the act of making exaggerated or subjective statements about a property or its features with the intent of making it seem more attractive to potential buyers.

What are the steps in the appraisal process?

Steps in the Appraisal Process

  • Frame the purpose or identify the problem.
  • Record the data needed and its sources or references.
  • Collect, document, and verify the data.
  • Collect, document, and verify the data for each approach.
  • Examine and analyze the data.
  • Reconcile data for the final estimate.
  • Draft an appraisal report.

What happens if the appraisal is lower than the offer?

If your appraised value is lower than the agreed upon sales price, you'll have to make up the difference in cash, or cancel the deal.

Frequently Asked Questions

What is the next step after the appraisal?

After the appraisal, the next step is underwriting. The mortgage lender reviews the loan file to ensure that everything is in order, assesses the risk, and either approves or denies the application. Some borrowers might receive conditional approval, meaning that some item needs to be resolved or explained.

Is market value usually higher than appraised value?

If buyers are few and far between when you list your home, there's a chance the market value will be lower than the appraised value. On the other hand, if you're seeing a ton of interest in your home from multiple buyers, you may find that the market value is higher than the appraisal value.

Is it a bad idea to pay over appraised value?

Mortgage lenders often require home appraisals before approving a loan to ensure the homes they're financing are worth the prices being paid. Lenders rarely approve loan amounts higher than the appraised value.

What are the 7 steps of the appraisal process?

Steps in the Appraisal Process

  • Frame the purpose or identify the problem.
  • Record the data needed and its sources or references.
  • Collect, document, and verify the data.
  • Collect, document, and verify the data for each approach.
  • Examine and analyze the data.
  • Reconcile data for the final estimate.
  • Draft an appraisal report.

How does an appraisal work in California?

An appraisal assists buyers and sellers in arriving at a fair and equitable sales price. An appraisal of physical property may also include an opinion of its age, remaining life, quality or authenticity. b. The listing agent needs an estimate of value of the property before accepting a listing from the owner.

What is the appraisal steps in real estate?

The appraiser will visit the property and spend an hour or two inspecting the interior and exterior, measuring the square footage, and evaluating the home's features and fixtures. Additional research will include a comparison of other similar homes that have been sold recently (known as "comps").

FAQ

What negatively affects home appraisal?
Structural And Other Construction Materials

This includes things like asbestos tile and insulation and lead paint. Even if the materials are safe, if they haven't been updated, your home may not be as energy-efficient, which could also affect value. This is especially true for old windows and doors.

What race owns the most homes in the US?
Homebuyer Demographics by Race/Ethnicity

Among all home buyers, White Americans made up the largest share (88%), followed by Hispanic Americans (8%), Black Americans (3%), Asian Americans (2%) and other (3%).

What percentage of blacks own a home?
At just 41.7 percent, Black households have the lowest homeownership rate nationally—30.0 percentage points lower than white households. Indeed, Black-white homeownership gaps exceeded 30 percentage points in 37 states, including 10 states where they exceeded 40 percentage points.
When were blacks allowed to own homes?
1968

The overt discriminatory practices of refusal of sale and loans continued unabated until at least 1968, when the Fair Housing Act was passed. After this act was passed, outright refusal to sell property to African Americans became rare, given that that behavior could lead to prosecution under the Fair Housing Law.

What state has the most black homeowners?
South Carolina

In 2021, South Carolina led the U.S. in rates of homeownership among African-Americans, according to a report released Wednesday by ApartmentList.

What is the future of real estate?
The future of real estate will involve an increased focus on added features, like roof access, common areas, and even designated workspaces. Investors operating multifamily properties may see these changes as early as this year, though they will only continue to evolve.

How real estate left neighborhoods behind

What was the first black neighborhood in Memphis? Orange Mound

Orange Mound is an African-American neighborhood located in the southeast part of the Memphis, Tennessee. Orange Mound is the first African American community built solely by and for African Americans.

Will 2024 be a good time to buy a house? Predictions for the 2024 real estate market

Despite anticipation for a more stable housing market, affordability remains a concern. Mortgage rates—while possibly cooling off—are also projected to stay elevated in 2024, which could be challenging for some Americans, especially first-time homebuyers.

Is the appraisal given to the seller? The final report is delivered to the lender – usually uploaded to a secure portal. It is up to the lender to inform the buyer (or the seller) what the home is appraised for. In most states, Lenders must share the appraisal report with the borrower, by law.
Who should do the appraising? Generally the employee's supervisor leads the appraisal process. Other people — the human resources manager, coworkers, customers — may also be involved. A growing number of companies invite workers to review their supervisors to increase input and validity of appraisal results.
Who coordinates the appraisal? Appraisals can be coordinated by either the buyer or seller. If you are planning to sell your home, getting an appraisal can help choose an appropriate listing price that will attract qualified buyers. However, appraisals most typically take place during the mortgage approval process.
What's the role of an appraisal in a typical real estate transaction? If it is a purchase-and-sale transaction, the appraisal is used to determine whether the home's contract price is appropriate given the home's condition, location, and features. In a refinance transaction, the appraisal assures the lender that it isn't loaning the borrower more money than the home is worth.
  • What happens if seller won't negotiate after appraisal?
    • If the buyer can't get the seller to adjust the price or come up with the difference in cash, they can walk away from the sale with their earnest money deposit returned to them.
  • Who typically performs an appraisal?
    • Appraiser

      An appraiser is a trained and licensed real estate professional who is regulated by state appraisal boards and must follow federal, state and local laws and regulations. Each appraiser is required to remain independent and objective—meaning they can't be influenced by a buyer, seller, realtor or lender.

  • What is the process of an appraisal?
    • A qualified appraiser creates a report based on an in-person inspection, research into recent sales of similar properties, current market trends, and the details of the home, including its size, condition, floor plan, and amenities. The borrower usually pays the appraisal fee, which averages $300 to $450.
  • Who determines the type of appraisal report?
    • The lender or its agent contacts a state licensed or certified appraiser and identifies the property to be appraised and the intended use of the appraisal. The appraiser then determines the appropriate scope of work for the assignment.
  • Who are the two people that can conduct the appraisal?
    • The assessment process is usually facilitated by Human Resources, who assist managers and supervisors in conducting the individual appraisals within their departments. An assessment method should be established. Required competencies and job expectations need to be drafted for each employee.

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