Lizzo loses nearly $4M on her LA mansion — a third of its value. How to know when selling at a loss is the right move
Lizzo recently sold her Beverly Hills mansion, taking on a big loss in order to let the property go.
The Grammy Award-winning artist put the home on the market more than a year ago, according to a New York Times report (1). She reportedly bought it in 2022 from a Warner Records executive for $15 million.
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When she listed her home in late 2024, the singer was asking for $15.99 million, but the Times reports the most recent asking price was dropped to $12.5 million. However, the home eventually sold for $11.15 million — a loss of almost $4 million.
The mansion isn’t short on amenities, as the 5,442-square-foot home has a private studio, theater room, salt-water pool, gym and an outdoor kitchen with a fire pit. It’s also in a gated community, sits on almost a third of an acre and has “sweeping canyon and hillside views,” according to the Times.
The property has even been home to another pop star — singer Harry Styles — although the current home was built in 2018. Styles’s former home was demolished after he moved out in 2016, according to a Realtor.com report (2).
When selling at a loss is the right call
Selling a home at a loss is never easy, but sometimes it’s a move you might have to make.
Circumstances that might push you to sell a property at a loss could include financial pressure that’s making it hard to make mortgage payments, having to relocate quickly or dealing with a declining real estate market (3).
If you are unable to keep up with your mortgage payments, or if you find yourself in a situation where you’re underwater on your mortgage, it could make sense to sell at a loss, according to HomeLight (4). It may also make sense for those who are forced to move for work to sell at a loss.
You might also find yourself in a situation where the financial pressure of carrying a mortgage becomes too much to handle — the death of a partner or going through a divorce, for example.
If you’re underwater on your mortgage — which means you owe more than the home is worth — you might be able to negotiate a short sale with your lender. A short sale is when your home sells for less than the mortgage balance, but the lender agrees to forgive the difference.
