A black couple settled a lawsuit against a real estate company that appraised the value of their Marin City, California, home nearly half a million dollars more when a white friend posed as the property’s owner.
Tenisha Tate-Austin and Paul Austin purchased the home in December 2016 and did a series of renovations afterward. When they decided to refinance their home in 2020, the appraiser estimated the home to be worth $995,000.
Three weeks later, the couple had the home appraised by a different appraiser, but this time, the couple removed all family photos and African-themed art. A white friend posed as the owner and posted family photos of him in the home.
The house was valued at $1,482,500, according to the suit filed by the couple, alleging housing discrimination because of their race.
The lawsuit names the original appraisal firm, Miller and Perotti Real Estate Appraisals, as well as AMC Links, which hired Miller and Perotti to perform the appraisal.
Earlier this week, the couple announced, through their lawyers, that they had reached a settlement with the appraiser.
“Having to erase our identity to get a better assessment was a harrowing experience,” Tenisha Tate-Austin said in a statement. “Neighborhoods of color have historically been undervalued due to deliberate racist housing policies, such as red lining. The continued undervaluation of homes in black neighborhoods perpetuates the wealth gap between black and white families.”
According to a statement, the couple settled the lawsuit with both companies for an undisclosed amount. Appraisers are also required to attend training that includes the history of segregation and discrimination in real estate, and to view a documentary, “Our America: Lowballed,” which presents the Austins’ story.
“We are glad to be able to put this lawsuit behind us,” Paul Austin said in the statement. “Having to experience all that came with receiving the poor review was overwhelming. Being able to tell our story and knowing that we had legal recourse helped.”
The Austins’ case, and their decision to get a second appraisal with a white friend posing as their homeowner, garnered headlines across the country, but their story also drew attention to housing discrimination that still face minorities.
“This is a landmark case,” said Caroine Peattie, executive director of Fair Housing Advocates of Northern California, which also filed the lawsuit with the Austins. “The Austins’ case was a dramatic example of how an unfairly low appraisal can affect your ability to access a loan on good terms and build generational wealth. Unfortunately, his experience is not unique.”
Lawyers for the defendants did not immediately respond to a request for comment.
