The Twin Peaks director, who died in January at the age of 78, used the Hollywood Hills compound as a base for much of his work, editing Mulholland Drive there, with one of its buildings featured prominently in his 1997 film Lost Highway.
The sale was reported by The Washington Post, which added the US director's family urged the buyer to preserve the property's unique cinematic and architectural legacy.
Marc Silver, listing agent with the Agency Beverly Hills, said demand had been overwhelming.
"Buyers have to be very well prequalified in order to actually have a showing at the property. The family's strong desire is that the next owner protects, preserves and honours what David created."
Lynch's compound on Senalda Road includes seven buildings with 10 bedrooms and 11 bathrooms, spanning more than 1020 square metres.
At its heart is the Beverly Johnson House, designed in the 1960s by Lloyd Wright, son of Frank Lloyd Wright.
The Mulholland Drive director purchased the house in 1987 and later acquired two neighbouring homes.
One was turned into offices for his company Asymmetrical Productions, while another housed his screening room and editing suite.
Richard Barney, professor of English at the University of Albany, visited the compound three times while interviewing Lynch for a book.
"As soon as you see it, you recognise it, remember it as being the house of the Madisons. It is not as spooky when you're there as it was made to be in the movie."
In 1991, Lynch commissioned Eric Lloyd Wright, grandson of Frank Lloyd Wright, to design a pool and pool house.
Silver said this was the only known property to carry contributions from three generations of the Wright family.
"In the time that I've been selling real estate, this is probably one of the only properties, if not the only property, that really checks all of these boxes.
"You have the architectural pedigree with Lloyd Wright and Eric Lloyd Wright, but as well as the cultural and historical significance and the cinematic and Hollywood history of David Lynch."
Barney said despite its size, the compound retained an enigmatic quality.
"It did have a feeling of a maze. There is a part of that he really loved to capture in movies but also in Twin Peaks, like the Black Lodge."
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