Jennifer Lopez and Ben Affleck will likely lose money on the sale of their Beverly Hills mansion in Los Angeles in the aftermath of their divorce. The price on the 38,000-square-foot mansion dropped $8 million this week, and the property has been on the market for about 10 months.
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.
The 5.2-acre estate was originally listed at $68 million, has 12 bedrooms and 24 bathrooms, and spans 38,000 square feet, according to Los Angeles County property records. But the Zillow listing shows the price has now dropped to $59.95 million—a price cut of more than $8 million.
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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 in the area 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.”
The property was first listed on July 11, 2024, and Santiago Arana of boutique real estate firm The Agency is the listing agent. Arana didn’t immediately respond to Fortune’s request for comment about the price drop.
Another reason luxury buyers in Los Angeles might be more picky when it comes to purchasing a new home is the mansion tax, which applies to property sales in L.A. of at least $5 million. Properties over $5 million incur an additional 4% tax, while properties costing more than $10 million have an extra 5.5% tax. The cost of the tax is separate from a home sales price, and can be a “massive amount of money,” Emma Hernan, a realtor with the Oppenheim Group and star of the hit Netflix show Selling Sunset, previously told Fortune.
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.
These factors mean Lopez and Affleck have already effectively lost money on this sale. They bought the property in May 2023 for $60.85 million and the current list price is $59.95 million—plus they could lose millions more from the mansion tax. Not to mention, Realtor.com reported the couple had poured “a huge amount of money” into renovations.
However, Jason Oppenheim of the Oppenheim Group told Realtor.com that a sale of this magnitude will take more time.
“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, L.A. 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.”
This story was originally featured on Fortune.com
