HALLS OF FAME

Is buying a celebrity's former home a good investment?

Is buying a celebrity's former home a good investment?

Not just anyone gets to tee off in Greg Norman's backyard and call Tiger Woods "neighbor." Only the buyer of Norman's mansion-an 18,000-square-foot compound on Jupiter Island, FL, with a 5,500-square-foot putting green and a yacht-ready dock-does.

If you like the idea of owning a golfer's paradise, or any chunk of celebrity real estate, now may be the time to buy.

A year or two ago, homes with a celebrity history frequently fetched a premium, says Los Angeles-based real estate agent Donna Sallen. But not today. "Even celebrities are affected by this market," she says.

While that may produce a few more sleepless nights in Hollywood mansions, it's good news for buyers looking for property with a star-studded past. Even rich and famous homeowners like Norman, actor Mel Gibson and real estate mogul Donald Trump are settling for less than their asking prices.

In 2007, Norman listed his 8-acre property for $65 million; a year later, he slashed the price more than 25% to $47.5 million. Gibson's 75-acre estate in Greenwich, CT, spent a year on the market at $39.5 million before he cut the price to $35 million in late 2008. Even Trump had to shave $25 million off the price of his Palm Beach, FL, mansion, which sold in 2008 for $100 million.

"People aren't going to overpay for a property because it belongs to a celebrity," says Aileen Comora, listing agent for actress Meg Ryan's $19.5 million, six-bedroom Spanish-style villa in Bel Air, CA. "It's all about value."

Value may sound ironic in reference to multimillion-dollar homes, but compared to years past, today's celebrity real estate market is a buyer's delight. "I think we're in a very unusual economic time," Comora says. "I don't think people are willing to throw money away."

In late 2008, one savvy buyer saved nearly $1 million on Grammy Award-winning singer Gwen Stefani's former five-bedroom Los Angeles home. Mark Brazill, creator of "That '70s Show," bought the home from Stefani in 2007 for $4.8 million; Brazill put it on the market for $4.9 million in early 2008, but eventually sold it for just under $4 million. Sallen, who represented Brazill in the second sale, blames the real estate downturn for the nearly 20% plummet in price.

Seeing a celebrity property languish on the market doesn't surprise Mark David, who chronicles celebrity real estate for his blog, the Real Estalker. "Sometimes it doesn't really matter, because real estate is real estate," he says. "[Celebrity] can bring attention to a property. I don't know if it necessarily sells the property."

Which leads you to ask: Is celebrity property a good investment? Can a celebrity home ride out this economic storm and command a premium again in the future?

"It depends which celebrity owned it," Sallen says. "It could be a positive or a negative."

The best celebrity real estate investments seem to be properties with historical significance, not merely a connection to a pop icon.

Joshua Saslove has plenty of experience with high-profile buyers and sellers as a broker in Aspen, CO. Though he can't remember a time that celebrity status helped sell a property, his listing for Storm King Ranch is a potential exception. The 840-acre tract near Aspen, on sale for $23.5 million, was a frequent hunting ground for President Theodore Roosevelt, who often stayed in the lodge that remains on the property. "There's a sensitivity to the fact that this significant person spent time here," Saslove says. "That could influence somebody's thinking."

Another property attracting interest because of its historic inhabitant: baseball great Hank Aaron's four-bedroom home in West Palm Beach, FL. For Donald Gorbach, the listing agent and a lifelong baseball fan, Aaron gives the home a special meaning that isn't reflected on its $895,000 price tag.

"Hank Aaron is a legend, and there aren't too many living legends today," Gorbach says.

But even if a legendary past isn't on your list of a property's must-haves, you may still be in the market for a celebrity home. Realtors routinely don't disclose a home's celebrity ties because of privacy, security or simply discretion.

"The majority (of celebrity sellers) don't want anybody to know," says Comora, who is rumored to have sold Bob Dylan's house without the buyer knowing it belonged to him. "They let the property speak for itself."

So if that golfer's paradise speaks to you, remember: It's all about value. You don't necessarily need to buy Greg Norman's home to make it a good investment-although it probably couldn't hurt.

ON THE MARKET

Here are a few celebrity homes currently for sale.

Celebrity: Greg Norman
Property: Jupiter Island, FL, compound. "It's a compelling opportunity because of its rarity," says Suzanne Frisbie, listing agent for the 8-acre waterfront estate.
Price: $47.5 million
Listing: www.corcoran.com/property/listing.aspx?Region=FL&ListingID=4202

Celebrity: Teddy Roosevelt
Property: 840-acre Storm King Ranch near Aspen, CO, includes seven-bedroom lodge
Price: $23.5 million
Listing: http://www.joshuaco.com/mls/details/98263

Celebrity: Lance Bass
Property: Three-bedroom colonial home in Beverly Hills, CA
Price: $3.925 million
Listing: www.luxsocal.com/Home138397.html