*Golden State Warriors star Steph Curry and his wife Ayesha have reportedly managed to lose money on their Bay Area home, which happens to be one of the hottest real-estate markets right now.
According to the Mercury News, the Currys paid “$3.2 million for their 7,520-square-foot Walnut Creek mansion in late 2015, and putting in nearly a half-million dollars to fix it up, the couple has sold the place for $3.195 million after dropping the price last month from $3.395 million. And that price had been dropped from the $3.7 million they were asking back in October of last year. The more recent sale went pending July 5.”
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Many wonder how does one “lose money on Bay Area real-estate?” And the answer seems to come down to one simple rule of thumb: location.
“Since homes valued at more than $2 million make up only a small percentage of properties in Contra Costa County, it’s a very niche market,” says Steve Mohseni, a real-estate agent with RE/MAX in Pleasanton. “So there’s limited demand for this type of home.”
Mohseni checked sales in the past year of homes listed in the city of Walnut Creek for $2 million or more, the definition of high-end. He found that out of the 494 homes sold, only eight were in that category. Of those eight, four sold under the asking price, three sold at asking and one sold for $30,000 above the listed price.
Mohseni says “none of those were over $3 million, until now. So Steph had the most expensive house sold in the city.”
Also Mohseni stresses that real estate is all about location and “the Curry home sits on a nondescript cul-de-sac, with its backyard sloping down to a major thoroughfare.”
“The place is kind of remote and there’s no prestige, no view of the Golden Gate Bridge,” he says. “It’s the mainstream that’s hot, not necessarily the high-end. And in many areas, even the high-end is not as hot compared to four years ago when we saw a lot of Chinese buyers paying all cash and over the asking price. That, as a rule, has slowed down.”