Why nobody wants to buy celebrity homes
Why nobody wants to buy celebrity homes
A basketball court in a basement? No thanks
Not even a name like Michael Jackson or Julia Roberts is enough of a carrot to secure a swift home sale.
This is to be expected, according to a report released Tuesday by Seattle-based real estate portal Redfin. Celebrity-owned properties reportedly languish on the market for an average of 36 days longer than comparable homes in the vicinity.
Tracking sales of homes by 60 celebrities in Southern California from 2011 to 2016, Redfin found that buyers tend to find starry properties as overvalued. “It doesn’t matter if you’re Jennifer Lawrence or Tom Hanks, it’s important to understand the buyers in your local market and to correctly price your home,” Nela Richardson, Redfin’s chief economist, told Mansion Global.
Also, celebrity sellers and home buyers tend to have a disconnect between amenities. While a house feature may add value to the listing, it may not be that strong of a selling point to buyers, according to Redfin agent Alec Traub.
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“For example, a celeb might install a basketball court in the basement of a home, where another person might want to use that space for something else,” he said. “Those homebuyers may be less inclined to want to pay the initial asking price.”
Celebrities being very private, prospective buyers also usually find it difficult to inspect the home in person. “You wouldn’t want to show a famous person’s home to just anyone, since stars value their privacy and don’t normally want to make their business public,” Traub added. “Anyone looking to tour a celeb home would have to go through a vetting process, so the sale of the home takes a little longer than other homes.”
The stars eventually acquiesce to the lack of interest and cut their selling prices drastically. Katy Perry sold her Los Angeles house last year for USD1.36 million less than she asked for, while Matthew Perry negotiated USD10.65 million for his USD13.5 million Malibu listing, Redfin noted.
Celebrity homes in other parts of the globe also face less-than-blockbuster demand. Cate Blanchett’s riverside Sydney abode secured a AUD19.8 million (USD15 million) deal, only for the buyer to back out after three weeks.
Redfin has mapped out the homes of the famous in this nifty map:
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Source: Property Report