Celebrities and Real Estate... #homeownership #wealth #homeownership

Buyer Beware:  Celebrity Ties to Real Estate Could Be Make-Believe
Source:  The Los Angeles Times

As if home buyers didn't have enough factors to weigh when purchasing a home, buyers in La La Land also face weighing the pros, cons and truthfulness of celebrity ties to a property.  In Los Angeles, a property's connection to the rich and famous can add intrigue - and a hefty price premium.

But a celebrity-connected property can also risk value if the legen doesn't hold up or if buyers think attaching a celebrity's name to their home is tacky or exploitative - or both.  Often, homes linked to the famous attract interest and curious foot traffic, which doesn't necessarily translate into actual buyers.

A Redfin study of 60 celebrity homes found they stayed on the market for roughly 36 days longer than comparable homes and sell for less than the original asking price.  Star-specific amenities such as bowling alleys and horse stables can complicate sales, and the homes can be more difficult to show due to privacy concerns.

Making Sense of the Story

- Note the language sellers use when linking famous people to property.  For example, was the structure built "in the style of" an architect or the architect himself.

- Find the proof by asking for the property's original plans and other documents to verify lore.

- If the seller can't provide substantive documentation, hire a building biographer who can sort through records to determine a home's pedigree and background.

- Ask questions, especially what the premium is on a home with Hollywood connections.  What would a similar home, without the name dropping, sell for?

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