Celebrities Feeling Burned from Real Estate Market

Published by julia | Filed under Miscellaneous, Real Estate, Shout Outs, Uncategorized

It seems that the wealth of normal people is not the only target of the real estate market. Even celebrities are feeling the burn in their wallets when it comes to selling real estate in some of them most sought after neighborhoods in the United States and abroad.

Los Angeles, CA, for instance, is the home to many celebrities and stars. But, the housing prices have fallen by more than 10% in recent months with a near 50% drop in comparable home sales from December 2006 to December 2007.

For stars, that 10% price reduction in homes can mean a whole lot of money. The average star home starts at nearly $1.5 million. A 10% reduction in price would move that asking price from the $1.5 million to $1.35 million. That is a total loss of $150,000 for one home. Jump that price up to $10 million and the loss climbs to $1 million just because the real estate market is less than ideal in Hollywood.

Stars like Wilmer Valderrama and Slash (from Guns and Roses) are feeling the hurt from the market drop. Valderrama, a television actor, took a price cut of $200,000 to sell his home recently. Slash, on the other hand, has taken the case legal, filing suit against his real estate agent for selling a property under the false assumptions of the home being larger than it really was and the lot being less secluded than Slash desired. The home also sold for a loss one year after Slash purchased the property.