Real Estate Investing

Forbes had an interesting piece recently on the “Celebrity Real Estate Losers” of Hollywood. Unfortunately, it seems Ed McMahon is the biggest loser, having to reduce his asking price from $7.7 million to a mere $5.7 million. Poor Ed.

In other news, Guns N’ Roses guitarist Slash is suing his real estate agent for much the same reason as San Diego couple Vernon and Marty Ummel. Like the Ummels, Slash feels he overpaid for the Spanish-style Hollywood Hills home he purchased in January 2006. Slash sold the home in December 2007 for $5.7 million, a loss of $500,000. The ongoing California Supreme Court case has Slash alleging that the home is neither as big nor as private as his real estate agent led him to believe it was. Real estate agent lawsuits seem to be a new trend. Couple that with the rash of personal attacks on real estate agents during home tours and it sums up to a good time to be exiting the business. Which indeed, many realtors are doing, but I digress…

Other Hollywood real estate losers:

Rock star Avril Lavigne had to reduce her asking price from $6.9 million to $5.8 million. With tennis courts, a pool, five bedrooms and six baths, the Beverly Hills house is being touted “one of the best values on the market today” by Lavigne’s agent, Forbes reports.

TV star Wilmer Valderrama reduced the asking price by $200,000 on his five-bedroom home. He received only $1.75 million for the home, which is in the less desirable Tarzana neighborhood.

Legendary hairstylist Vidal Sassoon has seen the asking price for his lavish Mulholland Drive estate drop by $5 million to only $20 million.

Access Hollywood is linking this trend to the writer’s strike. The L.A. real estate downturn began alongside the strike in November, Access claims, with December sales volume 48 percent less than a year prior and average home price down 11 percent.