Homes built in Black neighborhoods are often undervalued during appraisal

Reporter: Breana Ross
Published: Updated:
Homes in majority Black neighbors are often undervalued due to systemic racism. (CREDIT: WINK News)

In 1978, Gerri Ware and her husband built their dream home.

It’s three levels with a stone front and measures around 2,000 square feet.

They built on Barden Street in Dunbar, Fort Myers’ predominantly Black neighborhood.

“I wanted to encourage my people that you can have a quality home wherever you choose to build it,” Ware said. “You don’t have to go outside of your community to have a lovely home.”

It’s the biggest home on the block. It took a lot to achieve the dream.

“We had to make a lot of sacrifices. My husband was a teacher and I was in nursing. I taught nursing in Collier County so on the weekends we all had different jobs,” Ware said. “Got small loans from the bank because they were never going to give us a lot of money. We knew that.”

Racism prevented Black people from getting large home loans, Ware said.

They eventually finished their home, but when it was time to have it appraised, it was devalued.

“They appraised it at a lower value of what it would have been had it been built on McGregor and they told us that,” Ware said.

The appraisal came in at $40,000 back in the 70s.

Homes the same size or smaller in Cape Coral and on McGregor Boulevard sold for almost twice as that.

A 2018 Brookings Institution study shows the devaluing of homes in Black neighborhoods is still happening today by an average of $48,000.

In Fort Myers and Cape Coral, the study found homes in Back neighborhoods are undervalued by an average of more than $105,000.

In Collier County, that climbs to $300,000.

“Just sad that it’s OK. It is not right. It is not fair but that’s life and you are not going to cause me to lose my joy nor the passion for why we built it,” Ware said.

Fourty years later, Ware still loves her dream home.

She said she wouldn’t change a thing.

Black people still can’t get home loans at the same rate as whites.

A Zillow study published just last month found that Black mortage applicants are denied 84 percent more often than white borrowers.

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