Kamala Harris Could Focus on Making Real Estate Appraisals More Equitable

Propmodo Daily

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Vice President Kamala Harris, who has long prioritized reducing racial inequality in real estate, may continue to emphasize this issue in her presidential agenda. Plus, property owners facing rising insurance premiums due to climate events can use Property Resilience Assessments to document risk mitigation and improve insurance decisions. And, the FTC's non-compete ban has had little impact on commercial real estate, with brokers more concerned about high interest rates and low deal volumes.

Now let’s dig in!

Kamala Harris Could Focus on Making Real Estate Appraisals More Equitable

There is still little known about how a Kamala Harris administration would diverge from President Biden’s. But, we do know that the Vice President has been outspoken about the role of the real estate industry in reducing racial inequality, an issue at the top of her agenda for the past four years.

Last year, VP Harris spearheaded an initiative to combat racial disparity in home appraisals. “Today, I’m proud to announce we are developing a rule that will require financial institutions to ensure their appraisal algorithms are not biased and do not produce lower valuations for homes owned by people of color,” she said at the time.

She plans to level the real estate playing field in several ways. One includes rules that would require transparency in Automated Valuation Models to ensure they are not using biased data or making unfair assumptions about historically minority-owned areas. She also wants to create a way for homeowners to challenge what they believe is an unfair appraisal, providing a check to the increasingly automated appraisal system.

Lastly, VP Harris wants to make it easier for minorities to enter the appraisal industry. One way she hopes to do this is by lowering the barrier to entry into the profession, such as providing a public dashboard showing which states have overly restrictive appraisal licensing requirements. “The appraisal industry is one of the least diverse fields in the country,” said Neera Tanden, domestic policy adviser to the Biden administration. “There is no evidence that heightened requirements produce more accurate, ethical, or credible appraisals.”

In the coming months, we will learn more about Harris and the agenda she is running on. It will certainly include information about how she sees the role of government in the real estate industry. If her past actions are any indication, a significant part of that role will be attempting to end the inequality that the real estate industry can create.

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Spotlight

The FTC's ban on non-compete clauses, effective in September, has had little impact on the commercial real estate industry so far. Critics worry the ban could harm companies by making it harder to protect trade secrets, leading to legal challenges. Despite concerns, brokers are more focused on higher interest rates and lower deal volumes.

Propmodo Technology

Property owners are facing rising insurance premiums due to climate events. To combat this, Property Resilience Assessments (PRAs) document risk mitigation and identify ways to reduce climate-related risks. PRAs analyze construction, occupancy, protection, and exposure (COPE) data to improve risk assessments and inform insurance decisions. These assessments are becoming standard in acquisition due diligence and help secure coverage by demonstrating effective risk management.

Check out this week’s Propmodo Technology focus on Insurance and Risk Management with the support of our friends at Partner Engineering and Science, Inc.

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Join us on Tuesday, July 30th, for a Propmodo Live webinar where we will explore the latest office occupancy trends reshaping workplace performance and utilization. We'll delve into shifting demand patterns, highlight success stories from various sectors, and discuss the effects of hybrid work models on occupancy and operational strategies.

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