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 It is likely to lose money for selling their Beverly Hills mansion to Los Angeles after their divorce. The price of the 38,000-square-foot mansion dropped $ 8 million this week and the property was on the market for almost 10 months.
Jennifer Lopez and Ben Affleck lose more than each of their divorce, which ended in January. The $ 60 million mansion of the Beverly Hills they bought together in May 2023 was on the market for almost 10 months now and forced them to cut the list price.
The 5.2-acre estate was originally listed at $ 68 million and 12 bedrooms, 24 bathrooms and covering 38,000 square feet, according to Los Angeles County-owned property. But the Zillow list Showing the price has now dropped to $ 59.95 million – a price cut of over $ 8 million.
Anthony A. Luna, CEO of Los Angeles based on real-estate advisory coastline equity, is said Fate The price drop is not surprising because the luxury market there is saturated, so consumers have more action to get a lower price.
“Square footage and celebrity status no longer justify increasing pricing,” Luna said. “Consumers want smart design, upgraded systems, and long-term value.”
The property was first listed on July 11, 2024, and Santiago Arana of the Boutique Real-Estate Firm The agency is the list agent. Arana did not respond immediately FateThe request for comment on the price fall.
Another factor that expensive buyers in Los Angeles could be more picky when it comes to buying a new home is the mansion tax, which applies to sales ownership in LA at least $ 5 million. Over $ 5 million owners have an additional 4% taxes, while owners worth more than $ 10 million have an additional 5.5% tax. The cost of the tax is separate from a home sales price, and can be a “massive amount of money,” Emma HernanA Rieltor with Oppenheim Group and Star of Hit Netflix Show Seller of sunsetpreviously said Fate.
Now, he warns his clients about mansion taxes before they prepare to sell. For example, if the house is $ 5 million, they will have to pay an extra $ 200,000 “they are not really a factor when they buy the house because the mansion tax is not played,” he said.
“Now, they can break even or even lose their price for what the house really costs,” Hernan said, exactly what could happen to Lopez and Affleck's home sale.
Luna added that closing costs, handling costs, and longer market hours will also challenge sellers.
“Watering often wins pride, even if it means a $ 8 million haircut,” he said.
These factors mean Lopez and Affleck have effectively lost money on this sale. They bought Ari -hero in May 2023 for $ 60.85 million and the current list price was $ 59.95 million -including that they could lose million -million more from mansion tax. Not to mention, Realtor.com It is reported that the couple poured out “a large amount of money” in repairs.
However, Jason Oppenheim of the Oppenheim team said Realtor.com A sale of this magnitude will take more time.
“It is surprising that the house will sell less than 100 days,” he said. “Most homes of this magnitude have been in the market for six months, and in many cases longer.” It will be said at a time if the owner will require another price drop to sell.
Meanwhile, LA is still recovering from wildfires that destroy Palisades and Altadena communities earlier this year. Insurance premiums are now higher, further increasing the cost of homeownership to a place that is very expensive.
“The luxury market is no longer about vanity. It's about value and security,” Luna said. “Buyers are doing math, and they call Bluff.”
This story was originally featured on Fortune.com
