It turns out, real estate is tricky for everyone–even celebrities.
In fact, according to a new Redfin study that compared 60 celebrity homes to other similar properties, celebrities may have an even tougher time in the market than us Normals.
“We found that celebrity-owned homes tend to be bigger with more bedrooms and bathrooms, and they cost more per square foot than other abodes nearby,” noted celebrity real estate expert Alanna Finn. “That might not be a shock to most BUT we did find it interesting that, on average, star-owned properties stay on market for about 36 days longer than other homes and they usually sell for less than the original asking price.” Ouch!
“Celebrities will sometimes add amenities to a home, which might not be a selling point for future homebuyers,” said Redfin real estate agent Alec Traub. “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. Those homebuyers may be less inclined to want to pay the initial asking price.”
Another reason stars have a harder time unloading their properties? They’re harder to show. “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,” said Traub. “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.”
Of course, anyone can experience the disappointment of selling a home under asking. Celebrities, however, tend to experience the worst of it, with many selling homes for more than $1 millon under the initial asking price. In 2013, pop star Katy Perry put her home on the market for $6.93 million, two years after purchasing the luxurious compound for $6.5 million. The 9,000 square foot estate gathered dust on the market for over seven months, ultimately selling for $1.36 million less than the initial list price.
In 2005, songstress Jessica Simpson purchased a 5,500 square foot Beverly Hills dream house for $5.28 million. In 2013, she put it on the market for just under $8 million. The final selling price? $6.4 million.
Of course, not every star is lucky enough to break even. Some experience major losses–actor Nick Nolte, for example, originally listed his Malibu estate in 2013 for $8.25 million. The property was finally sold in 2014–for a relatively paltry $3.9 million.