Buying for ‘Hollywood Cachet’
Renowned homes typically fetch a price premium, according to luxury real estate agents. Wealthy buyers who view the homes as collectibles are generally willing to pay a higher price for that privilege.
The Rich Often Pay ‘Whatever It Takes’
The ultimate price tag on such homes is hard to quantify since some uber-wealthy buyers will pay almost anything to own a piece of pop culture, according to real estate experts. "It’s like owning a Picasso" or a Fabergé egg, said Tomer Fridman, a real estate agent based in Los Angeles who specializes in luxury and celebrity homes.
Infamy Sells, Too
Infamy can also fetch a higher price, said Arto Poladian, a Redfin luxury real estate agent in Los Angeles. In 2021, Poladian sold the so-called LaBianca house — the home where Charles Manson’s followers killed Leno and Rosemary LaBianca in 1969 — for $1.875 million. The property’s notoriety generated interest and attracted more prospective buyers — "and ultimately with that interest you get a little bit of a higher premium than without it," Poladian said.
A Home’s Value Is in the Eye of the Beholder
At the end of the day, a home is worth whatever the person is willing to pay for it, said Amanda Pendleton, a home trends expert at Zillow. Luxury real estate prices recently hit a record high. The uber-wealthy are largely insulated from high mortgage rates since many can afford to make all-cash deals, according to real estate experts.
Famous Homes Command a Premium
Famous homes generally command even loftier price tags than their market equivalents, those experts said. Josh Altman, a luxury real estate agent in Los Angeles who is featured on the Bravo show "Million Dollar Listing," estimates the premium can be perhaps 5% to 10% if the home is tied to a "household name" celebrity.
Q&A
Q: What is the typical premium for luxury homes?
A: The premium can vary depending on the property and its history, but it’s generally around 5% to 10% if the home is tied to a "household name" celebrity.
Q: Do wealthy buyers pay a higher price for famous homes?
A: Yes, wealthy buyers are willing to pay a higher price for a piece of pop culture and to own a historically significant property.
Q: Can infamy also fetch a higher price?
A: Yes, infamy can also fetch a higher price, as seen in the case of the LaBianca house, which sold for $1.875 million.
Q: Is there a ceiling to what super fans are willing to pay for a famous home?
A: Yes, there is sometimes a ceiling to what super fans are willing to pay, as seen in the case of the "Brady Bunch" house, which sold for about $3.2 million after months on the market.
Q: Can a home’s value be tied to its proximity to a famous residence?
A: Yes, even being in the vicinity of a famous residence can help, as seen in the case of the house next door to the one used for the filming of the original "The Karate Kid" movie.
