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Black Bay Area Couple Finds Home Value Increase 50% After White Friend Pretends to Be Homeowner

todayFebruary 22, 2021

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Systemic racism continues to ignore boundaries, as a black couple in Marin city recently found out after attempts to get a fair appraisal on their home.

What We Know:

  • Paul and Tenisha Tate Austin first purchased the 1960s themed home in 2016. In the time spent owning the house, the couple made over $400,000 in renovations. These renovations included a new deck, appliances, and an additional 1,000 sq. ft. of flooring. The Austins claim an “older white woman” was the one who appraised their home first. It listed at $989,000, roughly $100,000 more than what the couple appraised the house for before the renovations.
  • “It was a slap in the face,” Mr. Austin cried. It was at this point that the couple had their suspicions about being discriminated against. After all the investment put into their home, they demanded answers. The Austins sought after the help of another couple, whom they consider to be close friends. After listening to their experience, it seemed like a no-brainer for them.

“No problem. I’ll be Tenisha. I’ll hang up pictures of my family.” assured the friend of Mrs. Austin.

  • After one month, the house was appraised again under the guise of having white homeowners. At this point, it was given a value of $1,482,000, which is nearly a 50 percent increase from the original appraisal.
  • A problematic issue like this should be taken seriously, considering homeownership is a proven pathway to building wealth in the United States. “There are implications to our ability to create generational wealth or passing things on if our houses appraise for 50% less than its value,” Mrs. Austin declared. This is another reality of the systemic racism African-Americans and other people of color have to live with every day.
  • According to the National Association of Realtors (NAR), African-American applicants are rejected for mortgage loans at a rate 3x higher than their white applicant counterparts. It isn’t surprising that Redfin also reports only 44% of African-Americans owned their homes in 2020. Jessica Lautz, vice president of demographics and behavioral insights in the NAR, assures they are aware of the discrimination in nearly every aspect of the home buying process.
  • She believes that closing the homeownership gap is essential to closing the wealth gap in our country. The Biden Administration has proposed a couple of plans that could increase homeownership in the African-American community. First-time homebuyers could soon see a tax credit of up to $15,000 to assist in down payments along with a $100 billion fund to build and upgrade affordable housing for buyers and renters.

As long as systemic racism continues to block African-American wealth growth, the community will struggle to find its place economically.

The post Black Bay Area Couple Finds Home Value Increase 50% After White Friend Pretends to Be Homeowner appeared first on Black News Alerts.

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