Jennifer Lopez and Ben Affleck are poised to lose money on the sale of their $60 million Beverly Hills home thanks to the mansion tax
- Jennifer Lopez and Ben Affleck will probably lose money On the sale of their Beverly Hills manor in Los Angeles in the aftermath of their divorce. The price of the mansion of 38,000 square feet has dropped by $ 8 million this week, and the property has been on the market for about 10 months.
Jennifer Lopez and Ben Affleck lose more than the others in their divorce, which was finalized in January. The Beverly Hills $ 60 million manor that they bought together in May 2023 has been on the market for about 10 months now, and they have been forced to reduce the price of the list.
The 5.2 -acres area was originally listed at $ 68 million, has 12 rooms and 24 bathrooms, and covers 38,000 square feet, according to the Los Angeles County property registers. But the Zillow Listing Shows that the price has now fell to $ 59.95 million, a drop in prices of more than $ 8 million.
Anthony A. Luna, CEO of Los Angeles, based on the Consultative Coast of Los Angeles, said Fortune The drop in prices is not surprising because the luxury market in the region is saturated, so buyers have more leverage to obtain a lower price.
“The area and the status of celebrities no longer justify the swollen prices,” said Luna. “Buyers want an intelligent design, improved systems and long -term value.”
The property was registered for the first time on July 11, 2024 and Santiago Araba of Real Estate Firm The agency is the inscribing agent. Araba did not immediately respond to FortuneThe request for comments on the drop in prices.
Another reason why luxury buyers in Los Angeles could be more picky when it comes to buying a new house is the manor tax, which applies to sales of goods at least $ 5 million. The properties of more than $ 5 million lead to an additional 4%tax, while the properties costing more than $ 10 million have an additional 5.5%tax. The cost of the tax is separated from a sale price of houses and may be a “massive sum of money”, Emma HernanA real estate agent with the Oppenheim group and the star of the successful show Netflix Sell sunset, Said previously Fortune.
Now she warns her clients of the mansion at the mansion before preparing for sale. For example, if the house is $ 5 million, they have to pay an additional $ 200,000 in which they “did not really take into account when they bought the house because the manor tax was not at stake,” she said.
“Now they could break even or even undergo a loss if they assess what the house is really worth,” said Hernan, which could happen with the sale of Lopez and Affleck's house.
Luna added that closing costs, detention expenses and a longer period on the market are also difficult for sellers.
“Liquidity often gains pride, even when it means a haircut of $ 8 million,” he said.
These factors mean that Lopez and Affleck have already lost money effectively on this sale. They bought ownership in May 2023 for $ 60.85 million and the price of the current list is $ 59.95 million, the more they could lose millions of people more from the manor tax. Not to mention, Realtor.com reported that the couple had paid “a huge sum of money” in the renovations.
However, Jason Oppenheim of the Oppenheim group said Realtor.com that a sale of this magnitude will take more time.
“It would have been surprising for the house to sell in less than 100 days,” he said. “Most of the houses of this magnitude are on the market for six months and, in many cases, much longer.” Time will tell us if the property will need another price drop to sell.
Meanwhile, it is also recovering from forest fires that have ravaged its Palisades and Altadena communities earlier this year. Insurance premiums are even higher now, adding more the cost of home ownership in a place which is already notoriously expensive.
“The luxury market no longer concerns vanity. This is value and security,” said Luna. “Buyers do the calculation and they call the bluff.”
This story was initially presented on Fortune.com
