Wednesday, March 23, 2011

Celebrities' Worst Real Estate Mistakes

From asking an unrealistic sales price to buying too many homes, celebrities and their super-size homes aren’t immune to a sluggish real estate market.

Business Insider recently revealed some of the top real estate blunders that celebrities have made. Here are three:

1. Underwater with too many homes: Actor Nicholas Cage’s love for real estate ($33 million invested in homes) hasn’t been a smooth ride. He has several homes that were sold for way less than what he bought for and some that have fallen into foreclosure. Cage’s $1.7 million Newport Beach, Calif., home is listed for less than $1 million. His $15.7 million Rhode Island estate is on the market for nearly half what he paid--$7.8 million. After some IRS trouble in 2009 with one of his Louisiana properties, his two $3.5 million homes in New Orleans have been sold back to the bank for a combined $4.5 million. His $8.5 million home in Las Vegas sold for $5 million, and a $9.5 million Manhattan apartment sold for $7.5 million. But among his biggest real estate losses: His Bel-Air Tudor mansion, which was originally listed for $35 million, fell into foreclosure and is now listed at $10.5 million.

2. Unrealistic price tag: Singer Lenny Kravitz first listed his 6,000-square-foot, five-bedroom, seven-bathroom duplex in New York’s Soho for more than $17 million. Three years later, he dropped his asking price to about $13 million. With still no takers, he took the house off the market in 2006 and sank $1 million into renovations. In a down market, he re-listed the home but even higher at $19.5 million. After another three years sitting on the market, Kravitz’ real estate agents convinced him to drop the hefty price tag to $14.9 million, which led to singer Alicia Keys and Swizz Beats finally stepping in to buy the home last year.

3. Foreclosure: Singer Toni Braxton, a six-time Grammy winner, also hasn’t had much luck with real estate. She had a $2.6 million home in Henderson, Nev., fall into foreclosure and eventually sell for about $1 million. Braxton filed for bankruptcy last September after running up to $50 million in debt. Most recently, her $1.2 million home in Duluth, Ga., is now in foreclosure proceedings.

REALTOR® Magazine-Daily News-Celebrities' Worst Real Estate Mistakes

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