The short answer: At the very top of Los Angeles real estate, a trophy price is a hope until a buyer signs. This year a Beverly Hills mega mansion came back on the market at the same price it fetched 12 years ago, a Bel Air landmark that once asked $250 million sold at auction for $130 million, and a Malibu enclave meant to sell for nearly half a billion dollars ended up in bankruptcy court. The lesson for any luxury seller: the market sets the price, and it sets it on closed sales.
Trophy listings are the clearest pricing lessons in the city, because the numbers are so large that every mistake is magnified. Here is our read, and how to use it on a home at any price.
Lesson 1: Twelve years can add up to zero
A 22,300 square foot mansion on an acre in Trousdale Estates hit the market in late October at $70 million, the same price its owner paid in 2014, according to the Los Angeles Times. Over the same 12 years, the Times notes, the median Los Angeles home more than doubled in value.
In our read, a flat price over 12 years is a loss, not a wash. Property tax, insurance, staff and upkeep all went out the door in the meantime, and a 2014 dollar bought more than a 2026 dollar does. Trophy homes can be wonderful places to live. They are not guaranteed to appreciate.
1181 North Hillcrest Road, Beverly Hills, CA 90210
Lesson 2: The market eventually names the number
Casa Encantada, the 1938 estate of about 40,000 square feet on 8.4 acres in Bel Air, is the cleanest example of asking price versus sale price we have seen. Per the Los Angeles Times, it asked $225 million in 2019 and $250 million in 2023, was relisted at $170 million this April, and sold at a foreclosure auction for $130 million. That is about 52 percent of its highest ask, and it is still the priciest home sale in LA County this year.
The house never stopped being extraordinary. What changed was who controlled the timing. When a lender sets the clock, the market names the number.
10701 Bellagio Road, Los Angeles, CA 90077
Lesson 3: Aspirational prices need a buyer who agrees
This spring a 70,000 square foot Bel Air compound with 39 bedrooms came to market at $400 million, aiming to be the most expensive home sale in U.S. history. For context, the Los Angeles Times reported that the national record is $238 million and the California record is $210 million (LA Times). The same article recalls a 105,000 square foot Bel Air spec home once marketed at $500 million that was eventually auctioned for $141 million.
Uniqueness has limits too. The Stahl House, perhaps the most famous home in Los Angeles, listed at $25 million for about 2,200 square feet, was trimmed to $20 million in April, and as of October had not sold (LA Times). That first ask worked out to about $11,364 per square foot. Fame and pedigree are real, but hard to turn into a number a buyer will pay.
Lesson 4: Holding firm can cost more than a price cut
On a Malibu bluff beside Malibu Bluffs Park, a developer set out to build five midcentury inspired mansions and sell them for nearly half a billion dollars. Four of the five are unsold, construction has stalled, and the developer's companies have filed for Chapter 11, according to Malibu.FM, citing the Wall Street Journal.
Bankruptcy court notices from this September show two of the partially completed homes proposed for private sale at $55 million each, with a sale hearing set for September 22 (U.S. Bankruptcy Court, Central District of California, second notice). Whatever the final figures, a forced sale is the most expensive way to discover the market price. For more on the coast, see our guide to selling a luxury home in Malibu.
What the broader market says
The Real Deal's weekly tally of Los Angeles County MLS contracts on homes asking $4 million or more showed fewer signed deals than a year earlier in every October week it reported:
- Week reported October 7: 13 contracts, about half the prior year's count (The Real Deal).
- Week reported October 14: 24 contracts, down from 29, with homes between $4 million and just under $5 million making up nearly half (The Real Deal via Yahoo Finance).
- Week reported October 20: 17 contracts, down 23 percent, with asking volume down 16 percent to $119.5 million (The Real Deal via Yahoo Finance).
Buyers are still buying. They are taking their time, and they are paying for homes priced from real closed sales.
The city line matters at this level
Measure ULA adds a transfer tax of 4 percent on City of Los Angeles sales between about $5.4 million and $10.9 million and 5.5 percent above that, on the full price (The Real Deal). Bel Air is inside the City of Los Angeles. Trousdale Estates is inside the City of Beverly Hills, where ULA does not apply. Some homes with a Beverly Hills mailing address are actually in the City of LA, so check the city line, not the ZIP code. Our guide to the cost to sell a luxury home in Los Angeles walks through the math.
How to price your own luxury home
You do not need a $70 million listing to use these lessons:
- Price from closings, not listings. Asking prices are opinions. Recent sales are the market's answer.
- Know your competition. Buyers will compare your home to everything actively for sale nearby, so you should too.
- Count the cost of waiting. Add up a year of property tax, insurance, loan interest and upkeep, and set it next to the price change you are putting off.
- Be honest about uniqueness. A one of a kind home can earn a premium, but if similar homes are for sale nearby, you will be priced against them.
- Set a review date before you list. Decide in advance when you will revisit the price. Our post on how long it takes to sell a luxury home in Los Angeles can help you set realistic timing.
Frequently asked questions
Why would a Beverly Hills mansion list for the same price it sold for 12 years ago? Because the 2014 price was set when spec homes were selling quickly, and today's top buyers are more selective. Even with the median LA home more than doubling since then, a trophy home is priced by what today's buyers will pay.
Do trophy homes in Los Angeles always sell for less than asking? Not always, but recent examples show wide gaps. Casa Encantada asked $250 million in 2023 and sold for $130 million at auction in 2026, about 52 percent of that ask.
Is a $400 million home sale realistic in Los Angeles? It would be a national record. The current U.S. record is $238 million and the California record is $210 million, per the Los Angeles Times. Only a buyer can confirm the price.
What happens when a luxury seller refuses to cut the price? Often the home sits while holding costs pile up. In the extreme case of the stalled Malibu enclave this year, it ended in bankruptcy court.
Does the LA mansion tax apply in Trousdale Estates? No. Trousdale Estates is in the City of Beverly Hills, and Measure ULA applies only in the City of Los Angeles. Bel Air and some Beverly Hills mailing addresses are in the City of LA, where it does apply.
How do I know if my home is priced right? Start with recent closed sales of truly comparable homes, factor in transfer taxes and holding costs, and set a date to revisit the price if it has not sold.
Thinking about selling a one of a kind home?
I can show you what truly comparable homes have closed at, what you would keep after transfer taxes and costs, and how to price so you set the timing, not the market. Whether you are buying, selling, or looking for a home to rent for 30 days or longer, request a private consultation.
Call Jordan Pollack at 323.238.5225, email [email protected], or visit laluxuries.com. LA Luxuries Estate Agency, 333 S. Beverly Dr Suite 104, Beverly Hills 90212.
Jordan Pollack, Founder / Sales Agent, LA Luxuries Estate Agency, DRE 02010832
This article is general information based on public reporting, not an appraisal, tax or legal advice. Confirm transfer tax amounts with your escrow or tax advisor.
