Why are Jennifer Lopez and Alex Rodriguez downloading their Malibu dream house so fast?

They are Jennifer Lopez and Alex Rodriguez Are you experiencing a coronavirus-related home buyer’s remorse? It seems safe, as the celebrity power couple has decided to sell the beachfront property they bought less than two years ago in Malibu, California.

López and Rodríguez have just listed the house for sale for $ 7.99 million, just 18 months after buying it for $ 6.6 million from the actor of “Entourage” Jeremy Piven.

The 2,424-square-foot house, which was built in 1949, has been “reworked for a masterful redesign,” according to the listing. Although details about the interior of the house are sparse, the list mentions that it has numerous terraces and glass walls, and is located on 50 feet of sandy beach.

It is unclear exactly how much renovation work has been completed on the house, as the list includes only exterior photos, and Carl Gambino, the house’s listing agent with Compass, declined to be interviewed for this story.

However, in the past, López spoke openly about wanting to fix the house, with the help of a well-known home designer.

Did Joanna Gaines help J. Lo renovate this house?

During an interview on “The Ellen DeGeneres Show” last year, López described the house as a “waterfront repair house” and explained how Rodríguez surprised her on her second anniversary by taking charge Joanna Gaines HGTV’s “Fixer Upper” to renovate the home.

“It is a house that needs work,” Lopez told DeGeneres.

A few weeks later, López and Gaines (along with the baby). Crew) were photographed standing on the beach in front of the house, with TV filming equipment in the background.

So after investing all that effort to tune the house, why did the couple decide to drop it like a hot potato?

Has COVID-19 turned this beach house into a potential money pit, or a cash cow?

Some real estate experts speculate that the celebrity couple’s decision to sell may have been motivated by the coronavirus pandemic, as the house is so close to neighboring properties.

Even with direct beach access, other beach visitors may have been too close for López and Rodríguez’s comfort.

“Although the beach is nice and convenient, the house is located between two other properties,” he says. Cedric Stewart, a real estate agent with Keller Williams Capital Properties in Washington, DC.

“This setup doesn’t exactly lend itself to social distancing. As soon as orders to stay home were lifted, people started flooding beach destinations and oceanfront reserves skyrocketed,” says Stewart. “A crowded beach is not the best way to protect yourself during a pandemic.”

The pair is reportedly part of a group of investors trying to buy the New York MetsSo they may also be downsizing their real estate portfolio to free up some cash for that deal. But they may also be acting strategically should the recession drag on, he says. Odest Riley Jr., president of WLM Financial, a real estate brokerage firm in Inglewood, CA.

“They seem to be reading the tea leaves and the financial markets, and moving from a property that could turn into a money pit in the midst of a national crisis,” he says. “By putting the property back on the market and hopefully making a good profit, it allows them to free up cash and not get caught up in a possible investment that could probably be very difficult to finance for the next buyer. And if the market takes a fall in 2021, allows them to have cash available to collect different properties at a lower price. “

The COVID-19 pandemic may be affecting López and Rodríguez in another way: With everyone working from home due to the pandemic, beachfront properties are a hot product right now, he says. Cara Ameer, a real estate agent with Coldwell Banker in California and Florida.

“They made a deal on this house when they bought it and they may want to take advantage of the hot market, particularly with second homes because of COVID-19,” she says. “Everyone is looking for that getaway property, and there is no better time to buy a beach house.”

And despite López’s public criticism of Rodríguez’s sweet surprise, the Malibu home is most likely not more or less special to the couple than any of his other properties. After all, this is not your first joint foray into real estate. They have had multi-million dollar houses in Los Angeles; New York; the Hamptons; Encino, CA; and Coral Gables, FL, among others.

“Owning multiple properties is a business in itself, and given the number of real estate transactions in which this power partner is continually involved, the decision to buy or sell is often not an emotional one at this level and more about what makes business sense and lifestyle – now, “says Ameer.

Gaines’ apparent involvement adds another layer of celebrity glitter to the house, which could ultimately increase the asking price.

“The pricing strategy seems correct,” says Ameer. “Going to just under $ 8 million is an aggressive approach and may be able to create a multi-bid situation.”

The publication Why Jennifer Lopez and Alex Rodriguez download their Malibu dream house so fast? first appeared in Real Estate News & Insights | realtor.com®.