Click Here

REALTORŪ Magazine Online: The real estate professional's business support tool.


Daily Real Estate News  |  March 22, 2011  |   Celebrities' Worst Real Estate Mistakes
From asking an unrealistic sales price to buying too many homes, celebrities and their super-size homes aren’t immune to a sluggish real estate market.

Business Insider recently revealed some of the top real estate blunders that celebrities have made. Here are three:

1. Underwater with too many homes: Actor Nicholas Cage’s love for real estate ($33 million invested in homes) hasn’t been a smooth ride. He has several homes that were sold for way less than what he bought for and some that have fallen into foreclosure. Cage’s $1.7 million Newport Beach, Calif., home is listed for less than $1 million. His $15.7 million Rhode Island estate is on the market for nearly half what he paid--$7.8 million. After some IRS trouble in 2009 with one of his Louisiana properties, his two $3.5 million homes in New Orleans have been sold back to the bank for a combined $4.5 million. His $8.5 million home in Las Vegas sold for $5 million, and a $9.5 million Manhattan apartment sold for $7.5 million. But among his biggest real estate losses: His Bel-Air Tudor mansion, which was originally listed for $35 million, fell into foreclosure and is now listed at $10.5 million.

2. Unrealistic price tag: Singer Lenny Kravitz first listed his 6,000-square-foot, five-bedroom, seven-bathroom duplex in New York’s Soho for more than $17 million. Three years later, he dropped his asking price to about $13 million. With still no takers, he took the house off the market in 2006 and sank $1 million into renovations. In a down market, he re-listed the home but even higher at $19.5 million. After another three years sitting on the market, Kravitz’ real estate agents convinced him to drop the hefty price tag to $14.9 million, which led to singer Alicia Keys and Swizz Beats finally stepping in to buy the home last year.

3. Foreclosure: Singer Toni Braxton, a six-time Grammy winner, also hasn’t had much luck with real estate. She had a $2.6 million home in Henderson, Nev., fall into foreclosure and eventually sell for about $1 million. Braxton filed for bankruptcy last September after running up to $50 million in debt. Most recently, her $1.2 million home in Duluth, Ga., is now in foreclosure proceedings.

Source: “5 More Celebrity Real Estate Blunders,” Business Insider (March 19, 2011)

Read more:
Which Celebrity Do You Want Next Door?

Browse all of today's news
E-mail this page to a friend
Give us feedback

Search news
Launch my search
Subscribe to news
Subscribe to News
Daily and weekly real estate news, trends, NAR press releases, convention coverage, plus exclusive features and columns.

RSS Feed
Get the Daily Real Estate News delivered straight to your desktop or news aggregator. (New to RSS? Learn the basics here.)
How did you sell it?
Tell us how you overcame hurdles to sell a challenging or very unique listing!