Black and Latinx homes are more likely to be undervalued by real estate appraisers, who are mostly older white men. New recruiting and technology aims to change how appraisals are done and by whom.
Paul Austin and Tenisha Tate-Austin alleged that an appraiser undervalued their home by nearly $500,000. They got a higher appraisal after they removed evidence that a Black family lived in the home.
A new analysis by Freddie Mac has found that only 7.4% of appraisals in majority-white census tracts came in below contract price, compared with 12.5% for Black areas and 15.4% for Latino ones.
Two low home appraisals spurred a Black woman in Indianapolis to administer her own fair housing test. The result led her to file a complaint alleging housing discrimination.