Black couple’s home appraises for $500K more—when white pal poses as owner

[Kamaji]

Black couple’s home appraises for $500K more—when white pal poses as owner: settlement

By Andrew Court
March 8, 2023

A black couple has settled a lawsuit with a property appraiser who undervalued their California home by almost half a million dollars.

Paul Austin and Tenisha Tate-Austin’s four-bedroom residence in swanky Sausalito, near San Francisco, was valued at $998,000 by Janette Miller, co-owner of Miller and Perotti Real Estate Appraisers. That figure was $455,000 lower than an appraisal done for a prior mortgage refinance in 2019.

Feeling that their home was worth much more money, the Austins asked one of their white pals to pose as the owner of their residence. They had the home reappraised — and it was suddenly worth $1.48 million.

The Austins decided to sue Miller and her company claiming that her appraisal was “the direct product of racial discrimination.”

The case has now been settled out of court, with Miller agreeing to pay an undisclosed sum of money to the couple. The settlement also includes an unusual twist: The appraiser was also required to watch “Our America: Lowballed,” a documentary about their “white-washed” saga.

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Source:  https://nypost.com/2023/03/08/black-couple-sue-white-appraiser-who-undervalued-home-by-500k/

[Kamaji]

Even without knowing more of the details, one has to admit that the case is a little odd.  Valuation experts will always have price opinion differences, based on each individual valuator's prior experience, and risk appetite; however, a valuation difference of almost 33% is a little too big to be laid at the feet of differences in judgment without further explanation.

That being said, this is how one catches, and deals with, racism:  find the actual perpetrator, develop a concrete case, and take them to court to face the music.

Unfortunately, I fear that this will simply end up resulting in another stupid class-action lawsuit against all Texas real property valuators, with racism presumed into the mix based on much smaller differences in valuation, and without the benefit of a fully independent valuation where the only salient difference is the apparent identity of the owner.

[cato potatoe]

That looks more like a $500k home.  California makes it nearly impossible for the middle class to survive, especially in liberal enclaves.

[Kamaji]

That looks more like a $500k home.  California makes it nearly impossible for the middle class to survive, especially in liberal enclaves.

You'd be surprised at what little $1m will get one in California (unless you're from California).

[cato potatoe]

You'd be surprised at what little $1m will get one in California (unless you're from California).

Self-inflicted, as their local government will not permit adequate (or any) home construction to meet demand.  Sausalito had the same population 50 years ago.  There is a housing shortage in Florida, but you see bulldozers and cranes everywhere. 

[Kamaji]

Self-inflicted, as their local government will not permit adequate (or any) home construction to meet demand.  Sausalito had the same population 50 years ago.  There is a housing shortage in Florida, but you see bulldozers and cranes everywhere. 

Agreed.  The same as NYC's housing costs are self-inflicted.