In late March, the Biden Administration released its Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) report. Designed to mitigate bias in the real-estate appraisal process, the report recommended a multi-pronged approach to change how homes are valued and sold in the United States. Among other crucial steps, it called for greater diversity within the appraisal industry, quality-control guidelines for automated appraisals, as well as an appeals process for homeowners who think their home has been undervalued.
The PAVE report could drastically change how homes are bought and sold in the U.S. and address a long history of discrimination against minority homeowners—especially if PAVE’s recommendations are codified into law. That’s a big if when Congress has a hard time agreeing on, well, almost anything. So what can be done to improve housing in the meantime?
Kenon Chen, Executive Vice President of Corporate Strategy at Clear Capital, a Nevada-based leader in real estate valuation technology, thinks proptechs can begin to actualize the PAVE report’s long-term goals. In an interview with The Financial Revolutionist, Chen offered his key takeaways from the report, shared Clear Capital’s response to PAVE, and suggested ways proptechs can address bias in housing through thoughtful tech developments.