Black California couple’s home appraises for $500K more when White friend poses as owner
When the couple had their white friend pose as the homeowner, their house was suddenly appraised for $500,000 more
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 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 friends 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.
Miller’s attorneys initially hit back at racism claims, writing in a rejoinder to the suit which stated: "There is nothing inherently racist about choosing comparable properties that are located in the same city as the Subject Property, Without any direct (or indirect) evidence of actual racial discrimination, Miller’s choice of comparable properties cannot support Plaintiff’s claim of discrimination."
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However, the San Francisco property appraiser eventually agreed to the out-of-court settlement.
"I think everybody involved with the case was ready to move on," Caroline Peattie, the executive director of Fair Housing, told San Jose Mercury News.
"Obviously we felt we had a strong case or else we wouldn’t have pursued it in the first place," she added. "[But] Filing a lawsuit on the strength of the evidence is one thing and how a judge will rule is a separate question. You’re never assured of a particular outcome."