Where is your family from? Are the familiar with SoCal home prices? Could they be reacting to the current state of the home and not what it will be like when put back together?
Its a big house for the area on a large view lot. I saw pictures from the prior sale and it looks really cool. The current pictures and state dont do it proper justice. With that said it is on the high end of prices for that area but most houses in that area are older, smaller, smaller lots, no view and are hard to compare. Without spending the time to run comps I cant say for certain but on the surface it doesnt look like a bad deal.