How would you value this 1,290 sq ft serviced apartment in Los Angeles?

E

EsmeAsh

Landlord
Established
The seller may point to the light, location and four bedrooms, but I am hesitant to accept the $1,080,000 asking price on that basis. The apartment is about 1,290 sq ft and in average condition, with dated finishes and possible fees still to clarify.

I have found three active listings but just one completed comparable, so I do not want to treat their price per square foot as firm evidence. How would you allow for the layout and condition? My instinct is that the precise micro-location is hardest to correct later, although secure parking could also carry substantial value here. Details of the service arrangement, recurring charges, outdoor space and any lease term are still missing.
 
The asking price is roughly $837 per sq ft, but I would not apply the comparable’s full average rate to every extra or missing foot. Additional area often has a lower marginal value, especially if the layouts differ.

For dated but usable finishes, I might initially test a 5–10% condition adjustment, then replace that rough range with realistic renovation costs. Give the completed sale much more weight than the three active listings.
 
Before adjusting anything, what does “serviced” mean in this particular building? I would want the ownership and operating structure, any remaining lease term if applicable, recurring service charges, and restrictions affecting occupation or resale. A seemingly reasonable price can look very different once mandatory costs are included.
 
I disagree slightly with putting condition first. In Los Angeles, the exact micro-location could overwhelm a modest renovation allowance. Was the completed sale in the same building or genuinely comparable for street, floor, light and noise?

Parking is another major omission. Outdoor space matters too, but I would first establish whether the apartment and the sold comparable convey equivalent parking rights.
 
That helps. I was treating the dated finishes as the main adjustment, but I can see that doing so before resolving the ownership structure and recurring charges would be backwards. I also have not yet verified parking or outdoor space consistently across all four comparables.

I’ll separate the analysis into property value, condition costs and transaction/ongoing costs rather than folding everything into one percentage.
 
A simple grid should expose where the uncertainty sits. Put the completed sale and each asking comparable in columns, then compare floor area, room count, condition, exact location, light, parking, outdoor space, tenure and charges.

Avoid making overlapping adjustments—for example, reducing for both “dated condition” and the entire renovation estimate if those represent the same issue. With only one sale, I would present a range rather than a precise value.
 
The 4-bed configuration deserves attention as well. Four bedrooms within 1,290 sq ft may appeal to some buyers, but room size and circulation could matter more than the label. Compare usable layouts, not just total floor area and bedroom count. If one comparable has fewer but substantially larger rooms, a mechanical price-per-square-foot adjustment could mislead.
 
My order would be: verify the legal/ownership and service-cost details; confirm parking and outdoor space; establish whether the completed sale is truly local and recent enough to carry weight; then make modest floor-area and condition adjustments.

I would also ask for the sale price and relevant dates behind the completed comparable, since asking listings only show seller expectations. Until those items are known, $1,080,000 is a negotiating reference rather than a supported valuation.
 
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