Wednesday, May 30, 2012

Celebrities Lose Their Star Power With Housing

Celebrities are increasingly finding that having a famous name doesn’t always help them sell real estate, even though those famous names may help them move movie or music tickets, perfumes, or other products. Several celebrities who have tried to sell their homes recently have had to reduce their asking prices or have found their big-priced homes linger on the market waiting for a buyer. In the last year, for example, actors like Goldie Hawn and Kurt Russell have had to reduce the asking price for their $11.2 million Malibu beach home by $3.5 million. Ozzy and Sharon Osbourne sold their Malibu home for 21 percent less than their original asking price at $7.9 million. Actress Meg Ryan has relisted her Bel Air mansion at $11.4 million, a 42 percent price reduction since she first listed it in 2008. "In the art world, there is this notion of provenance — that who owns something can detract or add to the value," says Elizabeth Currid-Halkett, author of Starstruck: The Business of Celebrity. "But it does not seem to translate to celebrity homes." However, celebrities do tend to draw extra attention for their for-sale homes. But real estate pros say that celebrities just shouldn’t equate that with a “sold” sign or a boost in sales price. “The value of a house has more to do with the individual stamp the person puts on the property, real estate experts say, than a famous autograph on the sales contract,” according to a recent Los Angeles Times article. Source: “Celebrity Sellers Have Little Effect on Home Prices," Los Angeles Times (May 19, 2012)

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