Celebrities are also having a tough time in today's market, and some have had to reduce the listing price or are on the verge of foreclosure. No one is immune.
Celebrity Buzz
Most say a celebrities name brings a buzz to the property but this is a business transaction and most pay for the property value not the name. Initially the name can bring in more interest but some of those supposedly interested buyers are just window shoppers taking a strole through an admired actors residence.
Low Balling
On the other side, for the celebrity, they're not going to have much luck low-balling. If you've just been in a hit movie or have a hit record out, it's unlikely that the seller is going to knock down the price.
Featured celebrity real estate sections:
Dreamers
However, there are the fame dreamers and seekers. Of course in real estate it's the most important three words are: location, location, location. But if that location is combined with, 'George Clooney used to live here', that can help add a few zeros to the price.
Takeaways
What do you take away from these celebrity examples? Any lessons to learn? Even the biggest stars get over their heads sometimes, or their egos get in the way, and they end up buying property they can't afford. And then some look at the fundamentals and the market conditions and make wise investments and sell when the time is right.
Be cautious as always though. Don't jump into something with an emotional feeling, even if you're Tom Cruise or if you're buying a property just because Tom Cruise lived there - you might pull a Costanza and end up looking at teeth marks to see if there's a match, buying the wrong famous person's home. Buying the dentists home rather than the actors.
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