Do Celebrity Homes Cost More?
The answer to this question is yes, and no. While the homes in which celebrities live are typically well above the national average per-square-foot price, the status or name of the celebrity does not equate to a higher overall price. To understand this complicated matter lets look at a few specific examples.
Let’s start with some celeb sellers who had to slash prices. Goldie Hawn and Kurt Russell dropped the price of their Malibu beach house down $3.5 million. The Balinese inspired beach house features a spa-style retreat and meditation room as well as a covered outdoor living room in the ocean-front dwelling. However, despite all these lush amenities and the price break, the couple is still searching for a buyer for their $11.2 million listed property.
This is a competitive price in the celebrity housing market, in fact Meg Ryan has listed her property for $11.4 million. Ryan slashed her original asking price on her Bel-Aire mansion by a whopping 42% from 2008; she is still looking for a buyer.
Now let’s talk about the celeb homes that sold. The first couple of hard rock, Sharon and Ozzy Osbourne, had to drop the price of their Malibu mansion by 21% from $13 million. The Hidden Hills home sold for $7.925 million after a time of no takers which prompted the effective price drop. Super Star Jennifer Aniston also had to lower the price in order to sell her Beverly Hills home. Aniston’s star power and celebrity status wasn’t enough to sell her home for $42 million, the original listing. The 10,000 square foot estate sold for $35 million, nearly a 17% decrease, yes even Jennifer Aniston has to settle every now and then.
As you can see, simply being celebrity-owned isn’t enough to drive prices up, but it can be enough to at least drive up buyer interest. After only nine days after being listed, the home of Katy Perry and Russell Brand went into escrow. The 1920’s home saw a slew of interested parties which sped up the sales process, and the discounted price of a comparatively affordable $3.3 million helped too.
In celebrity real estate the value has more to do with the personal stylings or additions done to the home versus the name or status of the home owner. Increased buyer interest does not equate increased sales, and more and more celebrity homes on the market are reducing prices. However, even though these types of homes are being reduced, they are still priced above national market value.
So, essentially, celebrity-based homes do cost more per square foot than the average home; however, if you look at just that niche of the real estate market, you can see that the name or status of the celebrity has no effect on the celeb-home price. Last year homes in the 90210 zip code were selling at a median price of $699 per square foot, versus $230 per square foot across the nation. But consider this: In the celebrity home niche there are rampant price reductions across the board whether from a TV actor, movie star, or film legend. These reductions speak volumes about the state of the real estate market, but remember they are still well above the national average for homes.