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The Real Deal Los Angeles

Warren Buffett’s Laguna Beach beach house sells for 32% less than asking price

The property first hit the market in February 2017 asking $11 million
October 14, 2018 09:00AM

Warren Buffett and his Laguna Beach vacation home. (Credit: Wikimedia Commons, Zillow)

Trust Warren Buffett to finagle a winning deal no matter what.

When his six-bedroom beach house in Laguna Beach’s Emerald Bay finally sold, it was at a heavily discounted $7.5 million–almost a third lower than the price he initially listed it for, as the Wall Street Journal reported. However, the chairman of Berkshire Hathaway only paid a mere $150,000 for the 3,500-square-foot house in the 1970s.

The sale is further proof — in case anyone still needed it — of Buffett’s philosophy to “never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” Buffett wrote that in 1963 in a note to his partners, according to the Journal.

Buffett himself slashed the price from his initial ask of $11 million in August to $7.9 million.

The buyers are a couple who remain unidentified, though Buffett said in a statement to the Journal that “I feel very good about the couple who bought the house and hope their family gets as much enjoyment from it as our family did.” [WSJ] — Erin Hudson