Los Cerritos Property Under Appraised
Hello,
I am in process of buying a property from family (2 bed/1.5 ba/1213-SF) and had agreed to $645K prior to appraisal coming in 80K - $566K - under the price we've agreed to. The property is a unique townhome/mid century modern/half a duplex and the comps used were condos. The property is technically a condo but with low HOA $70 it is not really comparable.
It's hard to say what the fair market value is in this crazy SoCal market currently. I got multiple opinions from local agents who are thinking low $600s and two agents who think it's up to $700K at least.
It is hard to rationalize going in to the property as an investor (there are renters who are paying $3,000/month) there with negative equity right off the bat. It will take time to get that equity back obviously.
I have pointed out all these points to my brother and tried to get him lower but he has now backed out of the deal unfortunately as he is confident it's worth high $600s.
Not sure based on these numbers if it all made sense as just didn't want to overpay and curiuos other people's opinions in this market.
Thank you.
Dave