Do Celebs Get Premium Prices On Their Homes?

Recently, real estate agent Barbara Cocoran went on the Today Show to discuss real estate pricing for the rich and famous.

The high end market of celebrity real estate is not like regular real estate, not even compared to millionaires who own mansions in exclusive neighborhoods.

According to Cocoran, buyers pay a premium prices on homes that have been own by stars.

There are several examples of celebs asking for premium rates on their homes. One such example is Alicia Keys and her husband, Swizz Beats. They own an apartment in New York City and recently put it on the market.

They purchased the home from another celeb, Lenny Kravitz, and this increases the value more. In 2010, they paid $14.5 million for the apartment. They put it on the market for $17,950,000.

The home is a 6,000 square foot penthouse. The home features a top floor roof terrace that gives the home an additional 3,000 square foot of outdoor space. There’s a fireplace, floor to ceiling windows, and other luxurious amenities.

So, appraisers have to ask, has anything happened in two years that had upped the value of the home for $3 million? Except for some upgrades and repair work, the answer is probably nothing. The value of the home is only higher because of the star power attached to the apartment.

Other examples include New York Yankee Alex Rodriguez’s Miami mansion. The asking price is $38 million. However, when compared to homes that feature similar amenities and larger properties than A-Rod’s home has, the price does seem rather higher.

Home buyers seem to be willing to buy homes at premium prices simply because of the celebrity status attached to the previous home owner.

Ultimately, only time will tell which celeb homes sell for what prices, thus we will have to see what the final sale prices are for these homes.

Categorised in: Appraisal Tutorials & Info, Blog

This post was written by Joseph Castaneda