As the Los Angeles housing market continues to soar, some high-profile real estate players are selling their mega-mansions – surprisingly – at a loss.
Trevor Noah recently sold his Bel Air mansion for $26.4 million, more than $1 million less than he paid in 2020. Michelle Pfeiffer and David E. Kelley sold a Pacific Palisades home for $6.5 million of dollars, $1.2 million less than they paid for it in 2018. Earlier this year, Sandra Bullock sold a condo in West Hollywood’s Sierra Towers in an off-market deal to Joker director Todd Phillips. According dirt.comshe paid him $5.1 million in 2017 and discharged him for $3.6 million, representing a loss of $1.5 million.
Director Simon Kinberg was one of the biggest losers, selling his Hollywood Hills estate, which he bought for $31.5 million, to $28.5 million. But they are not the only ones. james lebron, Simon Cowell, justin bieber and Channing Tatum have also sold property at a loss in the past two years.
How is this possible in a booming market? Several factors come into play. Agents point out that the ultra-rich often buy on a whim, paying top dollar, and could tire of their new acquisitions just as quickly.
For those in the public eye, the need for secrecy can come at a high price. “Celebrities are deeply concerned about privacy and security, so they are drawn to out-of-market listings. Out-of-market listings are often overpriced; it creates a perfect storm,” says John Iglar by Douglas Elliman. These listings are often overstated by up to 20%.
Additionally, homes over $20 million can be particularly difficult to appraise. “It’s more like buying art, so it’s a bit tricky,” says Michael Nourmand, the president of Nourmand & Associés. “You have regular homes where there are past sales that are much more similar, and you have some of these bigger, more expensive homes where they’re kind of unique. It is more difficult to determine how much they are worth. The stakes are higher. There are fewer choices. It is more difficult to compare prices. It’s not like buying a liter of milk, where you can look online and see what everyone is charging for it.
Idiosyncratic renovations can also complicate the profitability of a real estate investment. “Sometimes you have someone [where] Money is not an object. They don’t think about resale. They just do it for themselves,” says Nourmand. “As a real estate agent, I always tell people, don’t do this. You always have to prepare your house with the idea that at some point someone else is going to own the property.
According to several brokers, neighborhoods on the Sunset Strip, especially Bird Streets, have seen their resale value decline in recent years (a recent seller lost $10.5 million). “There are too many mundane, undifferentiated homes on the market in this neighborhood at shocking numbers, at $20 million, $30 million, $40 million,” says an anonymous agent. “And most of them are not interesting.”
For the ultra-rich, stock market volatility, rising interest rates and inflation also mean that the money made by selling at a loss can be worth the influx of money and capital. “Selling at a loss is starting to happen a bit more now, because I think the perception of value is gone,” Nourmand says. “I think you had people making a lot of money, buying really expensive properties.”
But as one anonymous broker notes, losing money selling a home in today’s market is simply avoidable: “Honestly, if you’re selling at a loss and you’ve been buying in the last few years, seriously, you have to make every mistake in the book. You must be trying to lose money because the market has gone up 25%. If you lost money in this market, you shouldn’t be in real estate.
A version of this story first appeared in the June 22 issue of The Hollywood Reporter magazine. Click here to subscribe.
The mention sources can contact us to remove/changing this article
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]
- The 2023 Porsche 911 GT3 RS has 518 HP and insane aero stuff August 17, 2022
- 6 Best Face Washes for Men Under $40 for Every Skin Type August 17, 2022
- Afghanistan announces squad, Mohammad Nabi to lead August 17, 2022
- WaPo: Lawyers for Trump allies sought to copy voting machine data in battleground states August 17, 2022
- Women’s Basketball Announces 2022-23 South East Conference Schedule – UK Athletics August 17, 2022