How would you adjust the only completed comparable for this $805,000 Los Angeles serviced apartment?

E

EsmeAsh

Landlord
Established
I’m assessing a 5-bed serviced apartment in Los Angeles: about 2,640 sq ft, average condition, asking $805,000. Light and location are the strongest points; the finishes are dated, and property tax costs could affect the numbers.

I found three asking-price comparables but only one completed sale. Would you start from that sale and apply separate adjustments for floor area and condition, or is the evidence too thin for percentage adjustments? Which missing fact—micro-location, lease length, service charges, parking or outdoor space—would most change your valuation?

The spreadsheet looks acceptable until management costs and one bad year are included. I’ll still obtain a formal local appraisal before relying on any figure.
 
With only one completed sale, I wouldn’t choose a standard percentage range yet. Start with its price per sq ft, but then test whether the extra area here is genuinely useful; the marginal value of additional bedrooms and circulation space may not match the average rate.

My biggest missing facts are the exact ownership/lease arrangement and recurring service charges. Those can outweigh a cosmetic condition adjustment. Is the listing information clear on either?
 
Not clear enough, which is probably the answer in itself. I have requested the lease details and a full breakdown of recurring charges rather than relying on the headline description. I’m also confirming whether parking and outdoor space are included, because the comparables are inconsistent there. Until those points come back, I’ll treat the $805,000 as an asking price rather than evidence of value.
 
If an offer decision is due before the requested documents arrive, I would not choose between accepting $805,000 and walking away outright. A conditional offer, or a request for more time, would preserve the option while the recurring charges and ownership arrangement are clarified.

The other fact that could change my view is parking. Is the completed comparable in the same micro-location, and did it include an equivalent space? If not, that difference may be more important than whether the finishes are merely dated. Once those points are known, necessary work can be costed separately from cosmetic updating, with an allowance for disruption rather than a blanket percentage reduction.
 
A sensible next step is a comparison grid: completed sale date, distance, floor area, usable bedroom layout, condition, parking, outdoor space and recurring charges. Keep the three asking comparables as context, not proof of achieved value.

For the property-tax concern, get the parcel-specific information and confirm how a purchase at this price may affect your own costs; treatment can depend on the transaction and local facts. Then run the operating case with management included and a weaker year, not just the optimistic case. If the deal only works before those deductions, the valuation debate is secondary.
 
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