Setting a Sales Price When a Home Has a Famous Owner
It’s safe to assume that a famous owner can potentially boost the value of a piece of real estate, but whether famous ownership can boost the price by almost 61 percent is far less certain. An article from Realtor.com reports that famed Olympic gold medalist Michael Phelps is selling a home he bought in 2015 for $2.5 million for a listing price of $4.1 million.
Swimmer’s mansion features pool with a view
The mansion located in Paradise Valley, Arizona, within the Phoenix metro, reportedly features 6,000 square feet of living space and five bedrooms and seven bathrooms. The home has a large lot with fruit trees, a large pool and views of Camelback Mountain. Plus, it reportedly features many luxury upgrades, including imported French oak floors, custom lighting, limestone fireplaces, Carrara marble countertops, high-end appliances, and a wine cellar. However, real estate experts were divided on whether the home’s features and famous owner warrant the asking price.
Listing “in line” with comparable local listings
“Phelps is certainly not the first and won’t be the last celebrity to try to push the limits of the market with their pricing,” Cara Ameer, an agent in Ponte Vedra Beach, Florida, told the news outlet. Ameer pointed out the Olympic swimmer’s home was marketed in line with other comparable luxury properties in the area. “It is really neutral and move-in ready, which is also a huge plus since so many luxury homes are often customized to be taste-specific to the owner,” she added.
Phelps may be “shooting for the moon”
“I’m not sure there are enough celebrity-obsessed swimming aficionados with the financial wherewithal to offer his asking price,” said Kevin Deselms, an agent in Golden, Colorado. “I suspect this is a case of shooting for the moon, with the knowledge that he’ll end up needing to drop the price eventually.”
The article points out some other celebrity homeowners have been forced to offer deep discounts to sell their properties. Reba McEntire reportedly discounted $2.9 million from her asking price in order to sell a farm in Tennessee, while Julia Roberts reduced the price of her $30 million Kauai mansion by 40 percent to make a sale. Famed rapper 50 Cent has reportedly reduced the price of his Connecticut mansion from $14.5 million to $5 million over the past decade but has not yet sold the property.
Phoenix home prices rising quickly
Though he may have to discount the price somewhat, Phelps still may sell his Arizona home for much more than he bought it. The article notes that local values have risen 6.2 percent over just the last 12 months. “When you add a huge, stately pool on top of it, that is truly the icing on the cake with this athlete crib — being able to say you swim laps in the same pool that Michael Phelps did,” added Ameer.