Mansion Wouldn’t Sell, So Seller Adds $20M to List Price

September 30, 2019 | Comments Off on Mansion Wouldn’t Sell, So Seller Adds $20M to List Price

September 25, 2019

A 20,000-square-foot Beverly Hills mansion has lingered on the market for two years with several price cuts. But this month, the home sellers decided to do something different: Instead of reducing the price further, they raised it by $20 million.

The mansion, nicknamed the “Opus,” features seven bedrooms, 11 bathrooms, two pools, a car museum, two kitchens, and more. It was originally listed in 2017 for $100 million. In January, the price was cut to $68 million; four months later, it was reduced to just under $60 million.

The home is currently listed for $79.9 million.

The seller and his real estate agent have been quiet on the price jump, but realtor.com® recently asked real estate pros to weigh in on whether such price jumps can be a smart move for a listing.

Recent high-end sales in the area may have prompted the price increase. In July, a 56,500-square-foot mansion, known as the Spelling Manor, in Holmby Hills, Calif., sold for a Los Angeles county record of $120 million, realtor.com® reports. The estate had been listed for nearly four years, originally listed at $200 million in 2016. A few weeks later, a Bel Air 25,000-square-foot estate sold for $75 million; it had originally been listed last year for $88 million.

“They see the ultra-high-end buyer coming back,” Roger Perry, a real estate pro with Rodeo Realty and who has no connection to the Opus property, speculated on the price jump. “Or they want to give themselves a little more room for negotiation.”

Other real estate pros speculate that it could be a marketing ploy to get more attention back on the home. “They start out priced extremely high, knowing that’s not going to be the ultimate sales price,” says Scott Tamkin, a luxury real estate pro with Compass, also not affiliated with the sale. “Does it mater if it’s listed at $80 million or $65 million or $99 million? It doesn’t matter. The buyer is going to negotiate it.” Those who can afford such a home have pretty already seen the listing. The price bump is to entice them to take a second look, Tampkin speculates.

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