Buyout negotiations - adjustments to appraisal?

[Elizabeth Elbel]

I'm in an LLC and we jointly own a 5 unit multifamily property. One of the partners is interested in selling their 2/5 share and I'm interested in purchasing. To facilitate this, we had an appraisal done on the 5 unit multifamily property which came in as expected. The appraiser used a cost and income approach to arrive at a final market value.

What I'm now wondering is if it is appropriate to adjust the buyout price based on transaction costs and known maintenance issues? We don't have this level of detail in our LLC agreement so I'm looking for information on how/if appraisals are typically adjusted or left as is.

For example, I'm aware that the roof on this property will need replacement soon and one unit will need upgrades including unknown costs associated with mold remediation before it can be rented at a reasonable rate.  We have not done an inspection, but plan to do so.  I believe it would be appropriate to adjust the apprised costs based on those inspection results and 6% realtor transaction costs.  Does this seem appropriate?  Should we also be considering any adjustments for depreciation recapture or other items?  I think both parties want to arrive at a fair and justifiable price so I'm looking for guidance on what is reasonable in this situation.

Thanks