This artical is first shown on marketwatch
Elon Musk is a man on the move, and not just to the outer reaches of the moon.
The rocket man has listed his last-known San Francisco Bay Area mansion for $31,990,000. But this isn’t this property’s first time on the market. This is actually the third time the palatial home has been listed in the past 17 months—and this time, it comes with a $5 million price cut from before.
Perhaps more of a head-scratcher: Why hasn’t this home sold yet?
Why Elon Musk’s home hasn’t sold
One possible reason: In true eccentric billionaire fashion, the SpaceX CEO didn’t work with a real estate professional to sell the home, at least at first. Rather, he went the for-sale-by-owner route and told interested parties to reach out to him directly to talk turkey.
Maybe potential buyers couldn’t find his number. Whatever the reason, Musk ended up withdrawing the listing.
This time, it’s back with a real estate agency attached to the listing, Mary & Brent Gullixson with Compass.
“Representation is crucial,” says Jonathan Spears, founder of Florida’s the Spears Group. He points out how diligent Musk usually is with his time, even going so far as to break his schedule into five-minute intervals to maximize productivity. “So by hiring a real estate professional, Musk will get a market expert who can not only bolster exposure but also channel their experience into finding the perfect buyer for the home.”
Still, while a real estate agent can certainly help move this property, there are other potential challenges in selling the place. One overriding question: Are luxury home prices in the once-megahot Silicon Valley market overinflated?
To find out, let’s take a deep dive into Musk’s home to see how it stacks up, inside and out.
A sneak peek inside Musk’s massive estate
Located in Hillsborough, CA, the seven-bedroom, 9.5-bathroom estate measures 16,000 square feet and sits on a 47.4-acre lot—which, according to the listing, is one of the largest parcels of land on the San Francisco Peninsula.
So what will just shy of $32 million buy you exactly? For starters, a five-star kitchen (with space for a personal chef, naturally), a grand living room, and a library with leather walls. The listing also notes the next owner will enjoy a hydraulic lift wall that can combine the dining room and music room.
If you’re feeling a bit scared off by the price tag (your standard mortgage payment after 20% down would be about $151,174 per month), you can save money on your kid’s school tuition because, as the listing points out, there are “excellent public schools” nearby.
“Since the home was built in 1916, it blends a lot of old-world features like Palladian windows and checkerboard floors along with today’s tech features that only Musk could put a spin on,” says Cara Ameer, bicoastal real estate professional at CaraAmeer.com.
“My favorite features of this home include the lush manicured grounds, providing unparalleled privacy and insulating this historical estate while yielding spectacular water views and proximity to FBO (private airport) for optimal access,” says Spears.
What Musk’s home sale means for Silicon Valley real estate
Musk paid $29,850,000 for this property in 2017. The main reason he gave for vacating the Golden State? It’s the exorbitant house prices—which obviously aren’t a problem for the world’s richest man, but certainly could be for Tesla’s many employees.
“It’s tough for people to afford houses, and a lot of people have to come in from far away,” Musk said, according to the New York Post. “We’re taking it as far as possible, but there’s a limit to how big you can scale [Tesla] in the Bay Area.”
Yet real estate experts believe there are likely still plenty of millionaires willing to fork over big bucks to stay in the Bay Area—and ultimately maybe even live in a place where Musk once slept.
“I don’t think the sky is falling for Silicon Valley real estate,” says Ameer. “And this home is truly a unique find.”
“Elon Musk’s move to Texas, while significant, does not mean that California is headed for disaster,” adds Spears. “Texas has thrived on a Silicon Valley exodus as have other favorable tax havens like Florida and Tennessee. But the mild climate and generational wealth in California will always generate demand from the ultrahigh net worth buyers.”
Will Musk’s house sell for asking price this time?
“The house is ambitiously priced,” says Ameer. “I’m sure Musk is motivated to unload it and get on with his relocation.”
Ameer points out that the highest-priced home currently on the market in the area is $46,000,000 and has only a tiny fraction of the lot size that Elon’s does.
“Musk’s house sits on 47-plus acres, so that makes it quite a standout amongst its competition in this price bracket,” says Ameer.
“Luxury is a special niche,” adds Tami Bonnell, CEO of EXIT Realty and 40-year real estate veteran. “The people who can afford a property of this type want what they want.”
This artical is first shown on marketwatchAuthor on date 2021-10-21 15:23:00
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