With the housing bust came homes that were underwater for all of America. However there have been many reports in the news as of late, that luxury celebrity homes have been selling with individual losses in the millions. Either the homes sold below the original asking price or they had lost so much value that one would look like an idiot even asking for a sale price over and above what the home is worth.
Probably the biggest example is the Gianni Versace mansion, Casa Casuarina in Miami, with an original asking price of $125 million dollars. The current owner, telecom magnate Peter Loftin lowered the price bu $50 million dollars over the past year and still has no buyers. Originally built in the 1930s by architect Alden Freeman, Gianni purchased the property in 1992 for just under $10 million dollars. The Miami Beach property was somewhat dilapidated until Versace invested $33 million into restoring and improving the property.
After Versace was killed at this property, Donatella sold this piece of luxury real estate for $20 million to Mr. Loftin who had turned the property into a boutique hotel. The Versace mansion is being represented by Jill Eber and Jill Hertzberg of Coldwell Banker, aka, The Jills.
On the West Coast, Jim Carrey finally sold his luxury home in Malibu for $13.4 million dollars after dropping the price by almost $4 million dollars. The house was on the market for two years. But, Jim did make a profit as he had purchased the house in 2002 for $9.75 million. Janelle Friedman of Sotheby’s International Realty in Pacific Palisades was the listing agent.
And lastly, Robbie Williams sold his luxury property in Beverly Hills, California for a loss. The property sold for $3.2 million, a loss of $500,000 from the price he paid for it 8 years ago. Originally built in 1947, the main home measures at 3,525 square feet, and features with three bedrooms and four bathrooms, as well as a swimming pool.
The markets are coming up but people are still selling their homes at a loss or a lower asking price. The difference between celebrities and middle America is these losses are not causing them to financially crash. Many homes are in foreclosure still, and people thing their only option is selling the house as a short sale to save their credit. In my travels I did run across the Goodman Law Team who mitigates on behalf of property owners for the purpose of modifying their loans and saving their houses.