- Jennifer Lopez and Ben Affleck will seemingly lose cash on the sale of their Beverly Hills mansion in Los Angeles within the aftermath of their divorce. The worth on the 38,000-square-foot mansion dropped $8 million this week and the property has been available on the market for about 10 months.
Jennifer Lopez and Ben Affleck are shedding greater than one another of their divorce, which was finalized in January. The $60 million Beverly Hills mansion they purchased collectively in Might 2023 has been available on the market for about 10 months now and so they have been pressured to chop the itemizing value.
The 5.2-acre property was initially listed at $68 million and has 12 bedrooms, 24 loos and spans 38,000 sq. ft, based on Los Angeles County property data. However the Zillow itemizing exhibits the value has now dropped to $59.95 million—a value lower of greater than $8 million.
Anthony A. Luna, CEO of Los Angeles-based real-estate advisory Shoreline Fairness, advised Fortune the value drop isn’t shocking as a result of the posh market there’s saturated, so patrons have extra leverage to get a cheaper price.
“Sq. footage and movie star standing don’t justify inflated pricing anymore,” Luna mentioned. “Patrons need good design, upgraded programs, and long-term worth.”
The property was first listed on July 11, 2024, and Santiago Arana of boutique real-estate agency The Company is the itemizing agent. Arana didn’t instantly reply to Fortune’s request for remark in regards to the value drop.
One more reason luxurious patrons in Los Angeles may be extra choosy relating to buying a brand new house is the mansion tax, which applies to property gross sales in LA of not less than $5 million. Properties over $5 million incur an extra 4% tax, whereas properties costing greater than $10 million have an additional 5.5% tax. The price of the tax is separate from a house gross sales value, and could be a “large sum of money,” Emma Hernan, a realtor with The Oppenheim Group and star of hit Netflix present Promoting Sundown, beforehand advised Fortune.
Now, she warns her purchasers in regards to the mansion tax earlier than they put together to promote. For instance, if the house is $5 million, they must pay an additional $200,000 they “didn’t actually think about after they purchased the house as a result of the mansion tax wasn’t in play,” she mentioned.
“Now, they may break even and even take a loss in the event that they value for what the house is definitely value,” Hernan mentioned, which is strictly what might occur with the sale of Lopez and Affleck’s house.
Luna added that closing prices, holding bills, and an extended time available on the market are additionally difficult for sellers.
“Liquidity usually wins over delight, even when meaning a $8 million haircut,” he mentioned.
These elements imply Lopez and Affleck have already successfully misplaced cash on this sale. They purchased the property in Might 2023 for $60.85 million and the present listing value is $59.95 million—plus they may lose tens of millions extra from the mansion tax. To not point out, Realtor.com reported the couple had poured “an enormous sum of money” into renovations.
Nevertheless, Jason Oppenheim of The Oppenheim Group advised Realtor.com a sale of this magnitude will take extra time.
“It could have been shocking for the home to promote in lower than 100 days,” he mentioned. “Most properties of this magnitude are available on the market for six months, and in lots of instances considerably longer.” Time will inform whether or not the property would require one other value drop in an effort to promote.
In the meantime, LA can also be nonetheless recovering from the wildfires that ravaged its Palisades and Altadena communities earlier this 12 months. Insurance coverage premiums are even greater now, additional including to the price of homeownership in a spot that’s already notoriously costly.
“The luxurious market is now not about self-importance. It’s about worth and safety,” Luna mentioned. “Patrons are doing the mathematics, and so they’re calling the bluff.”
This story was initially featured on Fortune.com
