Even billionaires are feeling the pinch in today’s housing market! Evan Spiegel, the co-founder and CEO of Snapchat, recently sold his Los Angeles mansion, but not without taking a significant price cut.
The Sale Details
Spiegel, whose fortune is estimated at $3.1 billion, and his wife, Australian model Miranda Kerr, initially listed their Brentwood home for $19.95 million back in March. By July, they reduced the price to $17.75 million. However, the 7,000-square-foot property ultimately sold for just $16.1 million—nearly $4 million less than what they originally wanted. The sale was finalized on September 18.
The home was listed by Drew Fenton from the luxury real estate firm Carolwood Estates, which has a reputation for selling high-profile properties, including the Playboy Mansion.
A Star-Studded History
Before Spiegel moved in, the mansion had a glamorous history. Built in 1951, it was previously owned by actor Harrison Ford from 1983 to 2012 and later bought by former HBO Max chief content officer Kevin Reilly. Ford originally purchased the home for $1 million, while Reilly sold it to Spiegel for $12 million in 2016.
After living in the Brentwood mansion for about eight years, Spiegel and Kerr recently moved into their new $120 million mega-estate in Holmby Hills. They are also trying to sell another Brentwood property, a renovated three-bedroom home listed for $4.95 million.
The Challenges of Selling Luxury Homes
So, what’s making it tough to sell high-end properties like Spiegel’s? A big factor is Los Angeles’ new mansion tax, which imposes an additional 4% tax on properties over $5 million and 5.5% on those above $10 million. This tax is typically paid by the seller and can add up to a hefty sum. Realtor Emma Hernan, who stars on Netflix’s “Selling Sunset,” described the mansion tax as a “nightmare,” saying it discourages both buyers and developers.
Spiegel isn’t alone in facing these challenges. Other billionaires, like media mogul Rupert Murdoch, had to cut the price of his Manhattan penthouse by nearly 40% to $38.5 million. Rapper Ye (formerly Kanye West) also slashed the price of his Malibu home from $53 million to $39 million.
A Shifting Luxury Market
While luxury homes are pricier than ever, the market remains imbalanced, mainly due to low inventory. According to luxury real estate agent Niklas Hackstein, buyers in this segment are either highly interested and competing with others or looking for steep discounts. “It’s like they’re doing the seller a favor by taking the home off their hands,” he noted.
Conclusion
Evan Spiegel’s experience highlights the difficulties even wealthy homeowners face in a challenging market. With high prices and new taxes, selling luxury properties has become a complex game, and it seems the rules are changing.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
