"Get Realistic" — Shark Tank's Barbara Corcoran offers property advice to celebrities

Celebrity real estate expert and Shark Tank judge Barbara Corcoran has shared valuable advice for A-listers struggling to sell their homes. The 75-year-old founder of The Corcoran Group offered guidance to various A-list celebrities who have faced challenges in selling their luxury properties.

During a November 25 interview on the podcast Money Rehab with Nicole Lapin, Corcoran emphasized the importance of being realistic when selling high-value homes. She cautioned that repeatedly lowering the price of a mansion can signal to buyers that the seller is desperate, leading to lower offers.

Corcoran advised that instead of dropping prices, it's better to take the home off the market for three to six months and then relist with a new broker. This approach can help reset the buyer's perception of the property.

“Get realistic. You have to be realistic. I don’t think it’s a good idea to drop prices on expensive or lower priced real estate. It’s always a signal to the buyer there’s a problem and they’re encouraged to make an even lower offer,” said Barbara.

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Shark Tank's Barbara Corcoran shared details about Jerry Seinfeld overpaying for his property

According to Barbara Corcoran, celebrities often pay inflated prices for their real estate. She recalled a notable example involving comedian Jerry Seinfeld, who paid millions more than the listing price for a New York City apartment. Seinfeld's desire for the property led him to accept a $2 million price increase on the $6 million home.

Corcoran noted that Seinfeld's willingness to overpay was not an isolated incident. Celebrities are often accustomed to being charged premium prices due to their fame. Sellers capitalize on this, refusing to leave any potential profit on the table. As a result, celebrities frequently overpay for their real estate.

“Celebrities are used to being overcharged. When you’re coming in, there’s a lot of hoopla about you, the seller always knows it, they don’t want to leave any money on the table. Typically, a celebrity overpays for their real estate,” revealed Barbara.

The Shark Tank judge also addressed the question of whether buyers would pay extra for a celebrity-owned home. She explained that some individuals might be willing to pay a premium for the prestige and bragging rights associated with owning a celebrity's former home.

However, this premium is relatively insignificant and largely driven by the property's glamour and appeal. Ultimately, most buyers prioritize securing the best possible price for a property.

Nicole later asked Barbara about her recent statement warning against waiting for interest rates to drop before entering the real estate market. The Shark Tank judge explained that delaying a purchase in anticipation of lower interest rates can be a costly mistake. Corcoran argued that buyers will either pay higher interest rates or higher prices for homes.

When interest rates decrease, property prices tend to rise, and buyers face increased competition. Barbara advised buyers to enter the market sooner rather than later, ignoring current interest rates, as refinancing is always an option.

The Shark Tank judge emphasized the importance of participating in the real estate market to benefit from long-term appreciation and to have the means to trade up to more expensive properties. She stated firmly that there is always a good time to buy real estate, and that time is now.

Nicole proposed a game called "TikTok Trend or Truth" to Barbara. The game aimed to verify the accuracy of popular real estate tips circulating on TikTok. Nicole presented the first tip, buying an investment property through a Limited Liability Company (LLC).

The Shark Tank judge classified this tip as a trend, stating that while having an LLC can provide reduced liability, it's not a mandatory step for every investment property purchase. Barbara shared her personal experience, owning some properties through LLCs and others without, downplaying its significance.