What Should You Do If Your Mansion Won’t Sell? Raise the Price by $20M


Like many uber-luxury properties across the country, a 20,000-square-foot mansion in Beverly Hills has been sitting on the market for two years, undergoing multiple rounds of price cuts. But last week, something unusual happened: Instead of another decline in the price, it went up—by $20 million!

The seven-bedroom, 11-bathroom oasis, nicknamed “Opus,” was originally listed for $100 million in 2017. In January of this year, the price of the home, which comes with two pools, two kitchens (because why have just one?) and a car museum, sitting on about an acre in the tony Trousdale Estates neighborhood, was cut to $68 million. Four months later, the price dropped again to just under $60 million. Now, it’s back up to $79.9 million.

“It’s probably not the smartest thing to do,” says local luxury real estate agent Roger Perry of Rodeo Realty. “It looks foolish, going up and down in price. Anybody at that price level knows the price history.”

The home was designed by the celebrated architect Paul McLean and includes a wine cellar, an oversized private screening room, a billiard-room, and droolworthy views of Los Angeles.

It’s owned by producer-turned-developer Nile Niami, according to Mansion Global. He and his real estate agent did not immediately return requests for comment from realtor.com®.

Perry, who has no connection to the property, believes the jump in price is due to two recent, high-end sales in the area.

In July, the 56,500-square-foot Spelling Manor, in Holmby Hills, CA, sold for a record $120 million. The home, built for producer Aaron Spelling and his family, was the most expensive sale ever in Los Angeles County. It was originally listed for $200 million in 2016, and had been on the market for nearly four years.

About two weeks later, a nearly 25,000-square-foot mansion in Bel Air sold for $75 million. It had been listed in late 2018 for $88 million.

“They see the ultra-high-end buyer coming back,” Perry theorizes, to explain why the owners of Opus  jacked up the price. “Or they want to give themselves a little more room for negotiation.”

Local luxury agent Scott Tamkin, of Compass, believes the whopping price increase is a marketing ploy designed to draw the eyeballs of the uber-rich back to the home.

“They start out priced extremely high, knowing that’s not going to be the ultimate sales price,” he says. “Does it matter if it’s listed at $80 million or $65 million or $99 million? It doesn’t matter. The buyer is going to negotiate it.”

That’s because there are really no comparable properties at that stratospheric price range. So the price is whatever the buyer and seller agree on.

“The number of people who can likely afford a property like this saw it before it was finished, or within the first weeks,” says Tamkin. The goal of the price bump is make them take a second look, he says.

But there’s always the chance of a new billionaire on the block: “There’s always new wealth being created.”

The post What Should You Do If Your Mansion Won’t Sell? Raise the Price by $20M appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

What Should You Do If Your Mansion Won’t Sell? Raise the Price by $20M