Los Angeles Real Estate is on fire. Home values are increasing daily. By the time you get your appraisal done, that difference you are concerned about may not exist anymore.
You say that an out of area agent helped you determine the actual value. I wouldn't trust their opinion. There are nuances in every neighborhood with differences that can range from street to street. Someone from out of the area can not possibly know how to accurately price a house.
You are not going to overpay for the house. Your lender won't let you.
She made ur offer appealing ....No appraisal...highest offer. You probably would not have had an accepted offer without that in ur offer. The banks are also unpredictable in respondng. I have had a 6 Month wait....A 3 mnth wait u just don't know. You still have a way out should yu decide....just ask ur realtor.
First of all, it is not for sure that your agent did not know what to offer for this property. You now have a foot in the place as we say, you have been chosen. You can have inspections contingency even if you do not have appraisal contingency. The inspection contingency starts after the acceptance form the lender, so you are in good shape still. They will have their BPO and you will negotiate. Also LA is very hot market and you might have to pay more now , you will still save if you buy now because of the low interest rate that will save you money in the long run. You might have just a bit of buyer's regret right now and its normal , just get your house!
Do you want that house or not?
Think good, it will be good!
Broker, Realtor, Greater Los Angeles Area
Certified negotiator, HAFA certified, Short sale and Foreclosure resources certified
Agent Immobilier a Los Angeles et la region du Sud de la Californie
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You need to actually specify which appraisal you are talking about. I believe you are saying that the appraisal for your bank, that is funding your loan to purchase the property, has appraised it low. There is also the BPO for the lender that is taking a loss on the loan for the seller, and that appraisal could also be a problem.
I would be prepared to pay the difference if you want the property because it could likely delay the sale for at least another 3 months if you don't. You can also challenge the appraisal and have them reconsider it. If the BPO comes in at your price then send that with the challenge.
Why would you work with an agent you do not trust? I try to avoid working with people that do not trust me. Life is too short to deal with relationships that you do not trust over a hand-sake.
Best of luck!