Jennifer Lopez and Ben Affleck are losing more than each other in their divorce, which was finalized in January. The $60 million Beverly Hills mansion they bought together in May 2023 has been on the market for about 10 months now and they were forced to cut the listing price.
Anthony A. Luna, CEO of Los Angeles-based real-estate advisory Coastline Equity, told Fortune the price drop isn’t surprising because the luxury market there is saturated, so buyers have more leverage to get a lower price.
“Square footage and celebrity status don’t justify inflated pricing anymore,” Luna said. “Buyers want smart design, upgraded systems, and long-term value.”
Now, she warns her clients about the mansion tax before they prepare to sell. For example, if the home is $5 million, they have to pay an extra $200,000 they “didn’t really factor in when they bought the home because the mansion tax wasn’t in play,” she said.
“Now, they might break even or even take a loss if they price for what the home is actually worth,” Hernan said, which is exactly what could happen with the sale of Lopez and Affleck’s home.
Luna added that closing costs, holding expenses, and a longer time on the market are also challenging for sellers.
“Liquidity often wins over pride, even when that means a $8 million haircut,” he said.
“It would have been surprising for the house to sell in less than 100 days,” he said. “Most homes of this magnitude are on the market for six months, and in many cases significantly longer.” Time will tell whether the property will require another price drop in order to sell.
Meanwhile, LA is also still recovering from the wildfires that ravaged its Palisades and Altadena communities earlier this year. Insurance premiums are even higher now, further adding to the cost of homeownership in a place that’s already notoriously expensive.
“The luxury market is no longer about vanity. It’s about value and security,” Luna said. “Buyers are doing the math, and they’re calling the bluff.”
