Two homes in Los Angeles can sell for very different prices and still both serve as reasonable comparables, as long as each is matched to a property with similar size, condition, and location within the same neighborhood. If you are selling a home in Los Angeles and wonder why a nearby sale at $1.1 million and another at $5 million can both be used as comparables, the answer lies in how appraisers and agents match properties. Comparables are not chosen based on the citywide median price of $1,127,500 or the overall price range of $130,000 to $130,000,000. Instead, they are selected from the specific segment of the market that your property belongs to, such as homes of similar square footage, lot size, age, and condition within the same neighborhood or even the same block. For example, a 1,500-square-foot bungalow in Silver Lake will be compared to other small homes in that area, while a 4,000-square-foot modern estate in the Hollywood Hills will draw on sales of large luxury properties nearby. Both comparables are valid because they speak to their own market segment, not to the entire Los Angeles market. The key is that each comparable must closely mirror the subject property in the features that drive value, not match an arbitrary price point. So when you see a wide spread in closed sale prices across Los Angeles, remember that the citywide median of $1,127,500 is just an average, and the average days on market of 49 reflects a range of conditions. Your agent will pull comparables from a narrow band of sales that align with your home's characteristics, ensuring that even a $5 million sale can be a reasonable comparable for a $1.1 million listing if both fall into the same local submarket. This approach gives you a realistic pricing strategy based on what similar homes actually sold for, not on the extremes of the market.
Market figures based on 8394 closed MLS sales in Los Angeles, CA over the trailing 12 months.