Elon Musk is a man on the move, and not just to the outer reaches of the moon.
The rocket man has listed his last-known San Francisco Bay Area mansion for $31,990,000. But this isn’t this property’s first time on the market. This is actually the third time the palatial home has been listed in the past 17 months—and this time, it comes with a $5 million price cut from before.
This latest sales announcement is understandable, since last week, the billionaire CEO of Tesla announced he was moving his electric car company’s headquarters from Palo Alto, CA, to Austin, TX.
Perhaps more of a head-scratcher: Why hasn’t this home sold yet?
Why Elon Musk’s home hasn’t sold
One possible reason: In true eccentric billionaire fashion, the SpaceX CEO didn’t work with a real estate professional to sell the home, at least at first. Rather, he went the for-sale-by-owner route and told interested parties to reach out to him directly to talk turkey.
Maybe potential buyers couldn’t find his number. Whatever the reason, Musk ended up withdrawing the listing.
This time, it’s back with a real estate agency attached to the listing, with Compass.
“Representation is crucial,” says Jonathan Spears, founder of Florida’s the Spears Group. He points out how diligent Musk usually is with his time, even going so far as to break his schedule into five-minute intervals to maximize productivity. “So by hiring a real estate professional, Musk will get a market expert who can not only bolster exposure but also channel their experience into finding the perfect buyer for the home.”
Still, while a real estate agent can certainly help move this property, there are other potential challenges in selling the place. One overriding question: Are luxury home prices in the once-megahot Silicon Valley market overinflated?
To find out, let’s take a deep dive into Musk’s home to see how it stacks up, inside and out.
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A sneak peek inside Musk’s massive estate
Located in Hillsborough, CA, the seven-bedroom, 9.5-bathroom estate measures 16,000 square feet and sits on a 47.4-acre lot—which, according to the listing, is one of the largest parcels of land on the San Francisco Peninsula.
So what will just shy of $32 million buy you exactly? For starters, a five-star kitchen (with space for a personal chef, naturally), a grand living room, and a library with leather walls. The listing also notes the next owner will enjoy a hydraulic lift wall that can combine the dining room and music room.
If you’re feeling a bit scared off by the price tag (your standard mortgage payment after 20% down would be about $151,174 per month), you can save money on your kid’s school tuition because, as the listing points out, there are “excellent public schools” nearby.
“Since the home was built in 1916, it blends a lot of old-world features like Palladian windows and checkerboard floors along with today’s tech features that only Musk could put a spin on,” says Cara Ameer, bicoastal real estate professional at CaraAmeer.com.
“My favorite features of this home include the lush manicured grounds, providing unparalleled privacy and insulating this historical estate while yielding spectacular water views and proximity to FBO (private airport) for optimal access,” says Spears.
What Musk’s home sale means for Silicon Valley real estate
Musk paid $29,850,000 for this property in 2017. The main reason he gave for vacating the Golden State? It’s the exorbitant house prices—which obviously aren’t a problem for the world’s richest man, but certainly could be for Tesla’s many employees.
“It’s tough for people to afford houses, and a lot of people have to come in from far away,” Musk said, according to the New York Post. “We’re taking it as far as possible, but there’s a limit to how big you can scale [Tesla] in the Bay Area.”
Yet real estate experts believe there are likely still plenty of millionaires willing to fork over big bucks to stay in the Bay Area—and ultimately maybe even live in a place where Musk once slept.
“I don’t think the sky is falling for Silicon Valley real estate,” says Ameer. “And this home is truly a unique find.”
“Elon Musk’s move to Texas, while significant, does not mean that California is headed for disaster,” adds Spears. “Texas has thrived on a Silicon Valley exodus as have other favorable tax havens like Florida and Tennessee. But the mild climate and generational wealth in California will always generate demand from the ultrahigh net worth buyers.”
Will Musk’s house sell for asking price this time?
“The house is ambitiously priced,” says Ameer. “I’m sure Musk is motivated to unload it and get on with his relocation.”
Ameer points out that the highest-priced home currently on the market in the area is $46,000,000 and has only a tiny fraction of the lot size that Elon’s does.
“Musk’s house sits on 47-plus acres, so that makes it quite a standout amongst its competition in this price bracket,” says Ameer.
“Luxury is a special niche,” adds TamiBonnell,CEO ofEXIT Realty and 40-year real estate veteran. “The people who can afford a property of this type want what they want.”
Elon MuskSilicon ValleyTexas
Margaret Heidenry is a writer living in Brooklyn, NY. Her work has appeared in the New York Times Magazine, Vanity Fair, and Boston Magazine.
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As an enthusiast deeply immersed in real estate trends and an expert in the field, let me shed light on the intricate details surrounding Elon Musk's recent decision to list his San Francisco Bay Area mansion. Musk's move is not just about changing residences but is intrinsically linked to strategic decisions impacting the real estate market.
Firstly, Elon Musk's decision to list his mansion for the third time in 17 months, especially after announcing the relocation of Tesla's headquarters to Austin, Texas, reflects a dynamic real estate scenario. This is not a mere change of address; it's a calculated move influenced by various factors.
One noteworthy aspect is Musk's initial attempt to sell the property without a real estate professional, opting for a for-sale-by-owner approach. However, this unconventional strategy might have contributed to the property's prolonged stint on the market. Musk's subsequent collaboration with Compass, a reputable real estate agency, exemplifies the importance of professional representation in selling high-value properties. Jonathan Spears rightly emphasizes the crucial role of representation in the real estate process.
Now, let's delve into the specifics of Musk's mansion. Located in Hillsborough, CA, the property boasts seven bedrooms, 9.5 bathrooms, and spans an impressive 16,000 square feet on a 47.4-acre lot—one of the largest in the San Francisco Peninsula. Priced at nearly $32 million, the mansion offers opulent features, including a five-star kitchen, a grand living room, and a library with leather walls. Unique elements, such as a hydraulic lift wall, showcase Musk's penchant for cutting-edge technology.
Cara Ameer, a bicoastal real estate professional, highlights the property's blend of old-world charm and contemporary tech features. The lush manicured grounds, providing privacy and water views, contribute to the property's allure.
Musk purchased the estate for $29,850,000 in 2017, and his decision to sell is attributed to the exorbitant house prices in California, particularly in Silicon Valley. Despite Musk's departure, real estate experts assert that Silicon Valley's real estate market remains robust. Tami Bonnell, a seasoned real estate veteran, emphasizes the unique nature of luxury properties, suggesting that the mansion's standout features and vast lot size distinguish it in its price bracket.
The article also touches on the potential challenges in selling Musk's home, including the ambitious pricing. Ameer speculates that Musk is motivated to sell and move forward with his relocation, while also noting that the property's acreage sets it apart from the competition.
In conclusion, Elon Musk's real estate maneuvers provide valuable insights into the dynamics of the luxury property market, the impact of individual decisions on property value, and the role of professional representation in real estate transactions. This case serves as a microcosm of broader trends in Silicon Valley's real estate landscape.
