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Not every dream home has a dream outcome. Billionaire Scott McNealy, co-founder of Sun Microsystems, has sold his Silicon Valley mansion for a hefty discount off its original asking price. The San Francisco Standard reported that the five-bedroom mansion in Palo Alto, CA, sold for $35 million, nearly 65% below what he was asking in 2018.
McNealy reportedly purchased the 13-acre parcel in the 1980s, but he and his wife Susan didn’t begin construction on the home until 2008. McNealy founded Sun Microsystems in the 1980s, which was later sold to Oracle for $7.4 billion. Over eight years, they spent nearly $11 million creating a highly customized structure of stone and adobe. The home spans more than 21,000 square feet and features all the amenities a billionaire could want, including an indoor ice rink, a gym with a climbing wall, a home theater, and a dance floor. Outside, there’s a pool, spa, and a large pavilion with views of the surrounding hills.
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The home first hit the market for $96.8 million in 2018. It was relisted for $53.9 million in January 2020 and taken off the market in 2022. The sale was handled off-market. Realtor Deepee Chattha, who had the listing in 2020, told the San Francisco Standard: “Whoever bought this property got a steal, even in today’s economy.”
Real estate in Palo Alto, one of the most expensive cities in Silicon Valley, has continued to climb in price. According to a June Redfin report, prices rose 15.6% year-over-year with a median listing price of $3.6 million. Although sales were down 22%, homes were selling after just 14 days on the market. The area is still highly sought-after, and homes like the McNealy mansion are outliers due to their size and scale.
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Positive and negative signs for luxury homes
Homes at the ultra-high end of the market tend to take much longer to sell because the pool of buyers is much smaller and the homes are often heavily priced to the owner. Kanye West recently found a buyer for his beachfront home in Malibu, CA after knocking $14 million off the asking price. Realtor.com recently rounded up a number of high-profile homes in California that have had their asking prices slashed. Casino magnate Steve Wynn knocked $60 million off the price of his Beverly Hills home and still hasn’t found a buyer. Rick and Kathy Hilton had to knock $30 million off the price of their Bel-Air mansion before it sold.
Not all data is negative, and there are still plenty of active, wealthy buyers. A recent report from Savills revealed that US buyers are snapping up luxury properties in Southern Europe. Property appraiser Miller Samuel and brokerage Douglas Elliman predict that 2024 will be a record year for ultra-expensive homes. The US has already sold six homes for $100 million or more this year, including a penthouse in New York City that sold for $115 million. A mansion in Palm Beach, FL sold for $152 million. “It’s a significant increase in the pace of sales, something we’re not seeing at all in the broader housing market,” said Jonathan Miller, CEO of Miller Samuel.
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This article Billionaire Sells His House for 65% Off. Is the Ultra-Luxury Real Estate Market in Trouble? originally appeared on Benzinga.com