comps from a couple months ago relate to a seasonal surge in demand plus a drop in interest rates directly after Bear Stearns failed.
In June......... market values collapsed.
Interest rates soared........bringing the market to a grinding halt.
Mortgage financing has NEVER been harder to get......
be extremely careful
no sustained real estate appreciation until 2011
Of course, you need to be able to make the payments - so make sure you are comfortable with that.
This is not one of those difficult decisions to make. You are faced with a good opportunity to make some fast equity. Take it.
Worse case, you will have to sell the whole property later if the payments get too much to keep up with. Although in that case - you are going to win too with a much larger walk-away sum.
Best of luck!
Just as in any area, Orinda requires a licensed contractor to pull permits for many renovations. That's not to say the majority of homeowners take this step; as an Orinda broker I see many unpermitted additions, modifications, etc. For the specifics on buying out another tenant-in-common, your attorney or accountant can give you the best advice. We can tell you that the Orinda market remains strong, even in this slower time. We still see multiple offers on some properties, especially in the over a million price range.