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Former Treasury Secretary Loses 1 Million Dollars on Washington DC Home Sale

Henry_paulsonHis name graced is on billions of dollars, but when Henry Paulson went to sell his home he lost a million dollars from what he had paid for it just 4 years earlier.

The former Treasury Secretary of the United States sold his villa style home right down the road from the Vice President’s residence after having it on the market for the past 8 months.

With all the political clout and power that Paulson carried, he still was bit by the real estate downturn as we all are. The laws of the marketplace really do not bend for anyone in the long term.

The property sold for $3.25 million after originally being listed at $4.6 million, according to the website of the broker, Washington Fine Properties LLC. The asking price was later cut to $4.15 million.

Paulson, who ran the Treasury during the credit crisis precipitated by the housing market’s collapse, paid $4.3 million for the home in August 2006, city property records show. Washington-area home prices declined 25 percent from the time of his purchase through October, according to the S&P/Case-Shiller home-price index for the region.

“This is a unique property, singular in its architecture and interior artistry as well as the splendor of its natural setting,” according to the broker’s listing. “It offers comfort, convenience, beauty and exceptional privacy in one of the area’s premier residential neighborhoods.”

Now this would be tough for most families, but is just a rounding error for Henry Paulson. As the former head of Goldman Sachs he has made a bit of money. His net worth is still north of 700 million dollars so the loss of a million dollars on his home sale is not so bad in the big picture.

12 comments

  1. It is clear the Real Estate down turn has truly touched everyone. I believe that this post highlights, if you were ever thinking of buying a home any time…from FTHB to move-up buyer, one should "DO IT NOW"! Look Real Estate is simply not for sale, it is on sale! Money is cheap too! Last week I was doing mortgages below 5%.

  2. Yes, at least its a sale! Everyone is effected but in this case probably not a lot of tears shed. The Fire Sprinkler Initiative is really up against it in the current climate trying to lobby support to add more cost to builders. I wonder which way he will vote!

  3. Ironic… certainly not shocking. @Kevin you are right… no one is immune from this.

  4. It is such a bad time… I hope and pray that 2011 is the turnaround year that we were all waiting for!

  5. I agree with Kevin, Real Estate is on Sale! Buy now.

  6. i totally agree with Kevin. real estate industry now is really cutting down its price.. we can say that it is indeed on SALE, when you buy now you can get a property more cheaply than its original price.

  7. Well, like we say here in beautiful Asheville NC – its a buyers market. Asheville has not been hit quite as hard as the rest of the country but we are still feeling the pain here.

  8. I wish I had 700 million dollars! Or a 4 million dollar house to begin with!

  9. I definitely believe that the housing market is going to continue to suffer as the economy is still horrid and the unemployment rate continues to remain high. This definitely shows how everyone is suffering from the horrible market.

  10. I cannot, frankly, say I am sorry for his loss. If he was too busy to research or too arrogant to follow the advice of competent real estate professional, then tough toenails.

  11. Not to bad compared to the amount percentage drop in value most of America faced.

    -Mike http://sanfranciscorealestateguy.com

  12. The price is really low. A good chance to buy.

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