Famous people don’t have it easy all the time – especially when it comes to real estate profits.
According to Redfin, celebrity homes stay on the market 36 days longer than comparable properties on average and often sell below asking price, sometimes suffering multi-million dollar differences.
In an analysis of 60 celebrity homes across the Los Angeles metro, Redfin used property data within 500 meters of each star listing to gauge time on the market and discount trends.
While A-listers might have the notoriety in the media, notable names don’t necessarily yield top dollar at resale or get buyers in the door fast. Celebrity homes tend to offer more bedrooms, bathrooms and extravagant features, according to Redfin data, costing more per square foot than their comparable properties. And given a greater privacy concern, high profile real estate usually requires a lengthier buyer vetting process.
In 2013, Katy Perry sold her Los Angeles abode for $1.36 million less than the $6.93 million initial list price. The popstar purchased the home for $6.5 million back in 2011. Her castle-like compound, spanning nearly 9,000 square feet, sat on the market for over seven months with two price drops, according to Redfin data.
Matthew Perry – not related to the aforementioned singer – originally listed his four-bedroom, 5.5 bathroom Malibu estate (above) for $13.5 million in 2011, later dropping the price by a million dollars in 2014. The ‘Friends’ star closed at $10.65 million, nearly a $2 million drop, in 2015. Nonetheless, Perry made a pretty penny on the home, given he purchased it in 2005 for $6.55 million.
At 5,500 square feet, Jessica Simpson’s former Beverly Hills estate within the Hidden Valley neighborhood is nothing but spectacular, but that doesn’t mean buyers can’t bargain. The singer-turned-designer purchased the French-fashioned mansion in 2005 for a cool $5.28 million, and put it on the market in 2013 for just under $8 million. After dropping the price to $6.5 million, Simpson eventually closed at $6.4 million.
Chicago-raised comedian Vince Vaughn closed at $4.8 million on his Flintridge colonial (above) this past spring, far less than the original asking price of $5.3 million in August 2015. However, the ‘Wedding Crashers’ funnyman managed a decent profit compared to his purchase price of $3.925 million a few years prior.