Kanye West's Gutted Malibu Mansion Asking Price Drops by $14 Million

Turns out real estate's not all about location, location, location ... 'cause Kanye West's gutted Malibu mansion's not a hot ticket item -- and he's slashed the cost a lot to sell it.

TMZ has learned the mansion's price came down Wednesday ... It started with a $53 million price tag in January ... and has now dropped to $39 million this week. For those bad at math ... that's a $14 million price reduction.

The drop isn't totally shocking ... the house doesn't even really have walls, and it basically feels somewhat uninhabitable at this point -- so, whoever buys it needs to make serious renovations to the property, and it'll probably end up costing a ton of dough to do that.

As we reported ... Ye's been trying to unload this expensive property since December -- and, he even enlisted "Selling Sunset" star Jason Oppenheim to make it happen.

Jason told us at the time he wasn't worried about the serious renovation needs ... saying the house is basically a blank canvas -- and allows the new owner to tailor it to their tastes.

Seems not a lot of prospective new owners are jumping at the listing though ... the house is sorta languishing in the middle of one of the ritziest communities Los Angeles has to offer.