Does being a celebrity help or hurt when it comes to buying and selling real estate? Do celebrity sellers get higher prices by virtue of their fame? Is it an easier sell? Are famous buyers paying more because sellers won’t budge much for them or because they can afford to?
Star Struck Offers
New York broker Dolly Lenz of Prudential Douglas Elliman has had her share of celebrity real estate—Donald Trump, Bruce Willis and Barbra Streisand. Dolly was quoted as saying “most will bend over backwards for a movie star.” Unless a celebrity is adamant about their privacy, most brokers will reveal their identity, believing buyers will pay a higher price. Lenz claims Bruce Willis’ buyer paid 25% over market for his Trump Tower Apartment in 2004.
It was recently reported that bassist Tony Kanal of the band No Doubt sold his Los Angeles home for $1,560,000, above the list price of $1,495,000.
But Paddington Zwigard of Brown Harris Stevens, also in New York, says while celebrity homes attract more attention that does not necessarily mean you’ll get a higher price. We think it can’t hurt.
When we represented a bestselling author selling his Manhattan co-op, we advertised the fact it was a celebrity home (with the client’s consent). We even left copies of his bestsellers on the coffee table when showing it. The result? We sold the home for the highest price per share in the building. Maybe it was the hot market but one year later that sale price had not been eclipsed. I also know of other agent’s similar experiences. And it is not a wealth factor. A highly paid Wall Street seller never realized any advantage because of the size of his wallet.
Selling to the Celebrity Posse
While celebrity sellers may find it easier to sell for a higher price, the celebrity buyer offers unique challenges to a broker. A broker has to work around a celebrity’s schedule which often has them out of town for extended periods of time. And showings routinely include the celebrity’s caretakers. So, not only does the agent have to find a property the hard-to-get-a-hold-of celebrity loves, but the broker is faced with the challenge of justifying the purchase price to the celebrity’s highly paid posse of lawyers, accountants and managers, many of whom advise caution to cover their butts should the house cause their employer unexpected expense.
What’s your experience with the glamorati?
Sources: Forbes Magazine, “Celebrity homes’ best feature: Privacy” by Sara Clemence; Forbes “Inside the Homes of Celebrities“, Matt Woolsley 4/30/07.
Technorati Tags: celebrity, real estate, Bruce Willis, Donald Trump, Lenz, Barbra Streisand
