The longer a listing lingers on the market, the harder it is to sell. Brokers typically resort to price cuts in order to budge the seemingly unmovable.
This is not the case with fashion mogul Albert Elkouby’s 28,000-square-foot mansion in Beverly Hills, which he dubbed “the party house” and spent five years building. T
Sam Real of Nest Seekers International recently took over the dusty listing — and rather than giving it a price cut, he bumped the price higher, to $80 million. Real claims that, despite the fact that the mansion has sat without a suitor for two years, new wood floors and landscaping, as well as freshly painted bedrooms, justify the additional $8 million tag.
“I have nothing but the greatest respect for the previous agents, but at the time, the house was not fully finished,” Real said. “So, they may have had a little more difficulty promoting it as we are currently right now.”
Sources said the property has a perception problem because it’s been on the market too long.
But it’s possible the seller chose Nest Seekers because of its large New York presence, according to industry insiders, potentially giving the firm access to a new pool of buyers. Nest Seekers is still trying to gain a foothold in L.A. and choosing a “hungry startup” was likely an attractive offer, according to one source.
Real said he is implementing a marketing strategy targeting areas outside of L.A. with billboards, posters on buses and flyers.
“With a property of this stature, a lot of buyers are not going to be L.A. locals,” he said.
Jonathan London of Compass, who is not involved in the listing, said despite a property’s amenities and a tailored marketing strategy, it’s usually the asking price that’s to blame when a home doesn’t sell.
“If a property sits on the market for a long time in Central L.A., it’s definitely the price because we have so many buyers at the moment,” London said. “You can throw as much marketing as you want, but if it’s overpriced there’s no way you can [sell it].”
Hilton & Hyland’s Goldsmith declined to comment on the new asking price, but said the brokerage parted with Elkouby on good terms. Marketing any listing that has lingered for more than a year is a challenge, he said.
Elkouby, CEO of apparel manufacturer JH Design Group, purchased the site for $18 million in 2008, according to property records.
He built the home with a slew of extravagant features, from a 3,000-square-foot ballroom with 30-foot ceilings, a lounge with a cocktail bar for up to 200 people and parking for up to 66 cars.
“Million Dollar Listing New York” star Ryan Serhant of Nest Seekers and “Real Housewives of Beverly Hills” cast member Marisa Zanuck partnered to launch the Beverly Hills office of Nest Seekers in 2013. Zanuck left two years later to join Rodeo Realty.