Reducing Bias in Home Appraisals: The Roles for Policy and Technology

An appraisal assigns economic value to a home and is a key part of the process of selling, buying, or refinancing. Like other pillars of the housing system, the appraisal process is rife with racial inequities and homes owned by people of color are disproportionately undervalued. Marin City couple Paul Austin and Tenisha Tate-Austin illustrate a recent example; after “erasing themselves” from the appraisal process, Paul and Tenisha saw a $487,500 difference in the valuation of their home appraisal. As reported in an article in the San Francisco Chronicle in December, Paul and Tenisha, who are Black, received an appraisal value at $995,000 in January 2021. One month later, they reappraised their home, but this time removed family photos and asked a White friend to sit in as the homeowner. The appraiser valued their home at $1,482,500.