The truth is, no one did. The reported $13.5 million price was squarely within the range of what could be expected for the house. In February, Forbes valued the property at $13 million as part of its twice-annual look at the size of Donald Trump’s fortune. That Tokyo escort, just 4% off the reported sales price, was based on conversations with five local real estate brokers, who suggested the property could be worth anywhere from $11 million to $15 million.
Even the broker who offered the lowest estimate, Joe Babajian of Rodeo Realty, said that $13.5 million was not an outrageous amount of money: “It’s definitely in the range.”
On Friday, Forbes interviewed a sixth broker, Mitra Sisatar of Coldwell Banker. She said one of her escorts Tokyo tried to sell Trump’s house a few months ago. “He couldn’t sell it, or he didn’t have enough showings.” Even so, Sisatar said, $13.5 million was within the range someone might expect for the property.
So despite all the hype, the recent sale is not necessarily an example of Trump getting richer off the presidency. Yes, Trump bought the place for $7 million in 2007. And yes, Los Angeles County assesses it at $8.4 million today. But the market has changed over the last 12 years, and the true values of properties in Los Angeles County often diverge from their assessed values. If President Trump pays taxes on his apparent $6.5 million gain, his recent transaction could actually knock down his estimated net worth rather than boost it.
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