Months after her death, Diane Keaton’s custom L.A. home — known as ‘The House that Pinterest Built’ — was sold for $18 million. And while that’s a significant chunk of cash, it’s also a lot less than the original asking price of $26.9 million.
The Oscar-winning actress, known for her work in Annie Hall, The Godfather trilogy and The First Wives Club, also happened to be a successful house flipper.
Keaton bought the 1920s-era Sullivan Canyon property in 2011 for $4.7 million, then spent eight years rebuilding it into her dream home: a 9,200-square-foot rustic-chic farmhouse with five bedrooms and eight bathrooms. On the sprawling property, there’s a guest house, heated pool and spa.
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The design was inspired by the photo-sharing app Pinterest, which Keaton documented in her 2017 book, The House that Pinterest Built.
“Defined by soaring ceilings, abundant natural light, reclaimed architectural elements, and a level of craftsmanship rarely seen today, every room has been thoughtfully curated to create an atmosphere that feels both grand and remarkably inviting,” according to the most recent listing.
So why would a home like this sell for $10 million under asking?
Why a luxury home might not sell
In March 2025, after 14 years of ownership, Keaton put her Sullivan Canyon property on the market for $28.9 million, lowering it to $27.5 million a few months later. She took it off the market altogether in September and, a few weeks later, the actress passed away from pneumonia at the age of 79.
The property was relisted in December 2025 for $26.9 million and, after sitting for months on the market, lowered to $22.9 million in June. The house did find a buyer in August — whose identity isn’t known at this time — and Realtor.com revealed that it changed hands for $18 million.
This transaction is in stark contrast to what’s going on in the U.S. luxury home market. The median sale price of a luxury home rose 4.7% year over year (during the three months ending May 31), according to a report from Redfin. That’s more than triple the median sale price on a regular home, which rose just 1.5%.
“Overall homebuying demand has been fairly slow because mortgage rates and home prices remain stubbornly high, pricing many regular house hunters out of the market,” according to the report. However, high-end homebuyers are less sensitive to affordability pressures, financial instability and economic uncertainty.
So why did The Home that Pinterest Built sit so long on the market and experience multiple price reductions? Some might say its initial valuation was overly ambitious (or aspirational) — which is sometimes the case with high-end celebrity homes.
Another reason could be related to its highly customized design. The rustic-industrial home was tailored to Keaton’s tastes, which might not appeal to all buyers — at least not at a $26.9 million price point.
For example, it included a circular room with the text of a poem, “Lucky Life” by Gerald Stern, written across the curving walls. And the kitchen’s industrial lighting was made from repurposed chicken feeders.
Some celebrity homes also have features such as bowling alleys and recording studios that could limit the pool of buyers.
However, selling a home after the owner passes away comes with other considerations. If the home was owned jointly, it typically passes to the surviving owner. But if the deceased was the sole owner, then the home becomes part of their estate and is distributed according to their will (if, of course, there is a will). If there isn’t a will, then it has to go through probate.
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What to consider when inheriting a property
If you inherit a house, you may want to deal with it sooner rather than later to avoid ongoing holding costs and extra capital gains taxes.
If there isn’t a joint tenancy or the property isn’t held in a trust, then the property typically goes through probate, which means the court oversees distribution of the estate’s assets. If the property is held in a trust, then the trustee has authority to manage, transfer or sell the property in accordance with the terms of the trust.
That seems to be the case with Keaton’s Sullivan Canyon property.
“It’s understood that the sale of the house, which remained registered to a trust under Keaton’s real name, Diane Hall, was managed by the actress’ adopted children — daughter Dexter, 30, and son Duke, 26 — who are named as her primary beneficiaries and overseeing her estate,” according to Realtor.com.
If you’ve inherited a home, one consideration is the ‘step-up in basis’ tax provision. That means the value of the home resets to its market value on the date of the owner’s death, so you could potentially minimize capital gains taxes if the home is sold quickly. After the date of death, any gain in value would be subject to capital gains taxes.
Another consideration is the carrying costs of the inherited home. If you’re planning to sell the home rather than live in it, you’ll still have to pay ongoing expenses like the mortgage, utility bills, property taxes and maintenance while the house sits empty.
Also consider that homeowner insurance often denies coverage if a property is vacant for a certain period of time, so you may need to purchase vacant home insurance.
For those leaving behind property, make sure that your estate plan is up-to-date and reflects your current wishes. You may want to consider a revocable trust — in which the owner keeps full control of the home while they’re alive and directs what should happen to the home after they pass away — to make the process smoother for your loved ones.
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
