Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hello friends, thank
you so much for being here.
This is the George Real EstateGroup podcast, which is a
production of our live weeklyradio shows hosted on multiple
radio stations here inHendersonville, north Carolina.
The George Real Estate Groupserves Western North Carolina
and upstate South Carolina andit is a privilege to share
positive news about our localreal estate market and community
(00:23):
.
Thanks so much for subscribingand, of course, if you have any
real estate questions or if wecan help you in any way, be sure
to reach out.
Visit us atgeorgerealestategroupradiocom
for more information.
Good morning and welcome to theGeorge Real Estate Group live
(00:45):
radio broadcast here on WHKPEvery Thursday morning, bringing
you positive news about yourlocal real estate market and
community.
We're so grateful to be herewith you, sharing with you
what's going on in the localreal estate market, what's going
on in the community so much tocover this morning.
If you're tuning in for thefirst time ever, the George Real
Estate Group, we've had theprivilege of helping over 1,
(01:05):
almost 1600 families throughoutthe years, almost $400 million
in real estate.
We've helped move and people,whether it's their personal home
, investment properties, landdevelopments, commercial.
We're grateful to serve thecommunity through real estate
and, if you're thinking ofbuying or selling or investing
in real estate, we'd love tohave the conversation.
(01:27):
There's no pressure, there's nocost, there's no obligation to
give us a call or have theconversation.
We talk with people everysingle day and they're
discussing their goals, theirdreams, their life.
Life happens, therefore, realestate happens, and it's a
privilege and honor to help ourclients navigate through real
estate and how that might impactwhether it's your personal home
, your investment property,maybe it's an estate home, maybe
(01:50):
it's land that your family'shad the farm, the family farm
and there's so many nuances andlayers to all of it and every
situation is unique anddifferent.
Every property's unique anddifferent, but we have, you know
, over a hundred years combinedexperience at the George Real
Estate Group and we'd love tointerview for the job.
You can call us directly at828-393-0134, 828-393-0134.
(02:15):
You can also find us online atrealestatebygregcom.
You can also look upgeorgerealestategroupradiocom.
You can stop by our officethere in Flat Rock, 2720
Greenville Highway, there onRainbow Row I know the joke
might get old, but the dangerouslocation of Rainbow Row between
the Flat Rock Bakery, hubbaHubba Barbecue, campfire Grill,
(02:38):
hubba Lou, the Wrinkled Egg, allthose great local and
independent businesses, theGeorge Real Estate Group's local
and independent as well.
We have an incredible group ofagents, incredible staff.
We're so enthusiastic and welove helping our clients
navigate through the buying andselling process.
We podcast all of our radioshows.
You can find that on yourfavorite podcast platform.
(02:58):
We've been doing the podcastfor a number of years so we have
a number of radio shows.
One of the other radio shows wehave is every Friday morning at
845,.
We sponsor the Hometown Heroesseries.
We've been doing that for anumber of years, which we love
doing.
We love hearing the stories,sharing stories and meeting
incredible men and women servingthe community here.
(03:21):
It's also hard to believe we'recoming up on almost a year
since Helene and we'll be doinga lot more with that.
But Michelle Edwards with thePolk Referral Center Michelle
heads this source of help forresidents who were displaced or
had property damage duringHelene and we're going to have a
conversation with Michelle andhonor her as our hometown hero
(03:42):
and learn about more ways tohelp our community rebuild after
Helene.
We're here every Friday morning.
If you're curious and want togo back and hear some of our
other hometown hero segments,you can find that on our podcast
, our radio show.
We're so grateful to serve thecommunity through real estate.
The real estate market ismoving and we're going to talk
about a number of things today.
(04:03):
The market continues to move.
Just to give a quick snapshot,just the last seven days in
Henderson County and then we'lllook at what's happened year to
date, because there is a lot inpositive news.
Certainly some shifts in themarket, but the market's still
moving.
In the last seven days inHenderson County there's been 39
new listings.
(04:24):
A common trend is pricedecreases, price drops 73 price
drops in the last seven daysthere's been this is really
positive there's been 54 homesgo under contract in the last
seven days and then 33 homesclosed.
The market is staying strong.
(04:47):
It's staying very positive.
So if we look at year to date Imean if we look at year to date
what's happening with themarket?
The market continues to moveand again it seems to be you
know it's so interesting Throughthe end of July there's been
(05:08):
actually more homes sold inHenderson County, more homes
sold in Henderson County year todate through the end of July
than there were through the endof July last year.
So that's incredible to report.
Also, the prices are holding.
The average price is stayingpretty steady, really within a
(05:32):
couple of percents.
Is there much of a differencein the average home price?
Also in the median home price?
So really not much is changingin that regard, which is amazing
to report that the prices areholding.
Probably the biggest change isthe days on market.
(05:54):
In addition to the list to salesprice received, year to date
through the end of July, year todate through the end of July,
the percentage of the originallist price received is at 95.4%,
which is down 1% from theprevious same timeframe.
But if you look at the month ofJuly compared to the previous
(06:17):
July, that number is actuallydown to 93.4%, almost a 3.5%
drop.
So what it's telling us issellers are coming off their
prices.
A percent of original listprice received is down to 93.4%
in the month of July.
Also, inventory levels havebeen increasing.
(06:38):
Year to date through the end ofJuly We've had a 12% increase
in new listings.
We've actually had a 1.3%increase in pending sales and
almosta 6% increase in closedsales.
That's why our prices areholding.
But because of the increase ininventory and days on market are
(06:58):
longer, buyers are taking alittle bit longer.
The listing date to the closedate is actually at 115 days now
through the end of July, whichis up almost 19% increase in the
days to go to closing.
And then the days until a homegoes under contract is at two
(07:19):
months, which is up that's over37% increase.
And then cumulatively, fromgoing on the market to going
under contract's up 40%.
So I mean time on the market'sincreasing and it's just what it
is with our market.
So that's where the market'ssoftening, the market's
(07:49):
softening, and yet in thecontext of the home values, in
context of the price, in contextof the market, again it's about
supply and demand and againit's so important to look at the
market.
Now I heard a concept,interestingly, that I love this.
There's even an acronym forthis.
But have you heard of thephrase?
(08:09):
But of course there's obviousexceptions and it's attributed
to Scott Adams.
He's the creator of Dilbert,and there's an acronym,
b-o-c-t-a-o-e, which stands forbut of course there's obvious
exceptions.
Have you ever noticed whensomeone, have you ever noticed
(08:33):
the moment that someone makes abold, sweeping statement?
There's always that one personready to jump in and say well,
actually, and Scott Adams, thecreator of the Dilbert comic
strip, had a phrase for that,you know, b-o-c-t-o-a-e, t-a-o-e
, which stands for.
Of course there's obviousexceptions and it's a fun
(08:54):
eye-opening reminder that inlife, business and real estate,
absolutes are rare.
You know the origin.
Scott Adams coined it todescribe how people often
undermine a general point byfocusing on rare outliers.
For example, you might sayhomes priced correctly sell
faster and someone will say nottrue.
(09:14):
My cousin listed $50,000 overthe market and sold in two days.
And the cousin's story might betrue, but it's an exception,
not the rule.
And the cousin's story might betrue, but it's an exception,
not the rule.
So why this matters in realestate?
You know general rules arehelpful for guiding our clients.
You know marketing data,pricing trends and strategies
are based on the majority, notthe rare exception.
(09:36):
You know exceptions can misleadwhen buyers or sellers are
fixated on them, thinkingthey're the norm.
Example all homes need stagingto sell, but of course there's
always an exception that oneneglected fixer-upper that sold
in a bidding war last spring.
The reality is that was aunique market, not today's
(09:59):
environment.
How this can apply beyond realestate and business.
You need experience to start acompany, but of course there's
always the exception.
Yes, there are self-taughtfounders who made it big and
then life, breakfast is the mostimportant meal of the day and
of course the exception exceptfor the millions who skip it are
(10:20):
just fine.
In sports, defense winschampionships, unless you're the
1999 St Louis Rams.
So it's okay to recognizeexceptions, but don't let them
replace common sense or theoverwhelming trends.
So when you hear a stronggeneralization, ask is it the
(10:42):
rule or the rare exception?
Am I making a decision based ondata or on a one-off story?
So in real estate, the ruleswork most of the time and the
exceptions are interestingstories, but they're not a
strategy.
And remember, rules exist for areason.
Exceptions make for greatdinner stories because they
(11:02):
don't pay the mortgage.
So this is where you know,especially in real estate.
You know it's the pricing yourhome.
Pricing your home is socritical, and of course there's
there's, but of course there'salways the obvious exceptions.
You have the neighbor that soldit for for more.
You know the rule is price yourhome correctly, stage it,
(11:24):
market it well and it will sellfaster for more money.
Every now and then someonethrows up a sign in the yard
prices 20% over the market andstill gets a full price offer.
Of course that's not a strategy, that's luck, timing or a
unique buyer situation.
You know another example in hotseller's market, buyers may
(11:45):
waive inspections and bid high,but of course there are obvious
exceptions.
In today's market with moreinventory, that's rare.
So again, don't build your planon someone else's rare
exception.
Use proven strategies as yourfoundation.
Here's an example for and we'vedove into the world of 1031
(12:06):
exchanges the rule is sell aninvestment property and pay
capital gain taxes.
The exception a 1031 exchange,lets you defer those taxes by
reinvesting the proceeds intoanother like-kind property.
So again, you can property.
(12:28):
So again you can move yourcommercial real estate and sell
it and move it and you can deferthe capital gains.
You know the thing is noteverybody qualifies and also
there's timelines involved.
This is why we work hand inhand with our real estate
investors to make sure theydon't miss the 45 day
identification period or the180-day closing deadline, so you
don't lose the deferral.
So again, there's all of these.
(12:53):
Most of the time, success inreal estate comes from following
the proven rules.
But if you're working with aprofessional, sometimes the
right exception can change yourfinancial future.
But of course there are always,there's always obvious
exceptions.
The rules are the foundation,but the exceptions, when they're
(13:13):
the right fit can be gamechangers.
So again, we dive into this.
We talk about this all the timeand help our clients with that.
Talking about tax advantages andI've mentioned this before on
the radio program if you couldgrow your wealth, live in a home
you love and keep more of yourhard-earned money out of Uncle
(13:35):
Sam's pocket, would you?
And of course, one of the mostpowerful tools in your financial
toolkit is real estate and thetax advantages that come with it
, whether it's your primary home, an investment property or a
property you swap into the 1031exchange.
Most people are aware of this,but the primary residence tax
advantages Homeowners can deductinterest paid on mortgages up
(14:00):
to certain limits, which canreduce taxable income.
Also, property taxes may bedeductible, again depending on
what state you're in.
And then capital gainsexclusion when you sell your
primary residence and you'velived there for two of the last
five years, you may exclude upto $250,000 in capital gains and
(14:27):
if you're married it's $500,000.
You're actually allowed toexclude up to $1 million
$250,000 per person over 18years old that's lived in the
home.
Also another caveat or a nuanceto that, and again, we've walked
alongside our clients in thebeautiful, joyful moments of
life and we've walked alongsideour clients in the heavy moments
(14:48):
where loss of a loved one ordivorce or job loss I mean life
happens, therefore real estatehappens.
It can be really happy andjoyful reasons why people are
buying and selling.
It can be just very challenging, honest reasons why people are
buying and selling and we'vewalked alongside with our
clients in those moments wherethey've lost a loved one and a
(15:10):
spouse.
Now and again they say don't doanything for the first year.
You know, in regards to grief,in regards to making big
decisions.
But did you know that thesurviving spouse can take
advantage of their spouses?
To see spouses $250,000deduction.
(15:30):
You know exemption.
So as long as you sell itwithin two years after their
passing, you can take advantageof their $250,000 in exclusion
of capital gains.
This can be life-changing andit is life-changing for our
clients, especially as a lot ofour clients, after they lost a
loved one, they're downsizing,they're moving a loved one,
(15:51):
they're downsizing, they'removing back with family, they're
moving into a retirementcommunity and imagine having an
additional $250,000 tax-free.
And that's just part of the taxcode.
These are things that weprovide and information we
provide for our clients asthey're navigating through these
life experiences.
(16:14):
Also, tax investment advantages.
In investment properties youhave depreciation non-cash
deduction that allows you rightoff the cost of the building
over time, which reduces yourtaxable rental income.
Also, your expense deductionsyour repairs, your maintenance,
your management fees, yourinsurance, even travel to manage
(16:36):
the property may be deductible.
Also, mortgage interestdeductions still applies for
investment loans.
And then passive income andlong-term growth.
Rental income is taxeddifferently from wages and can
be offset by property expenses.
There's so many advantages.
And then also the 1031 exchangethe section of the IRS code
(16:59):
allows allowing you to sell oneinvestment property and buy
another like-kind propertywithout paying capital gain tax
immediately.
There's some key rules it mustbe an investment property.
It can't work on your primaryresidence.
However, if you move out ofyour primary residence, you've
lived in the.
This is amazing.
You can stack tax codes and, ofcourse, talk to your tax
(17:22):
advisor.
You can stack tax codes.
You can live in a primary hometwo out of a five-year period.
And then if you rented out theproperty for two out of that
five-year period, not only canyou exclude, you can do the
$250,000 per individual on theprimary home you then could
actually do once the propertyhas been a rental property for
(17:44):
two years.
You can the remaining portionof the property equity.
You can actually do a 1031exchange.
Again, these are things mostpeople aren't aware of or talk
about.
You can actually replace theproperty If you can.
You can invest in anotherproperty by and defer the
capital gains.
You can roll your gains intobigger and better investments
(18:07):
without losing a chunk to taxes.
So real estate isn't just aboutowning property.
It's about building wealthstrategically and using the tax
code to your advantage.
So whether you're in your firsthome, building an investment
portfolio or considering a 1031exchange, the right plan can
save you thousands.
And if you have questions orwant to explore how this could
(18:29):
work for you, please give us acall.
At the Georgia Real Estate Group.
Visit us onlinerealestatebygregcom.
Find us online.
You can also call us at828-393-0134.
We also are on social mediaFacebook and Instagram or just
stop by our office in Flat Rock.
We serve all of Western NorthCarolina and the upstate as well
(18:50):
.
Rock, we serve all of WesternNorth Carolina and the upstate
as well.
So we are meeting every singleday.
We have clients that areworking and selling their
personal home.
We have clients that areselling their investment
portfolios.
We work with estate planningattorneys, we work with tax
strategists.
We work with so many different.
There's so many.
We're not just one piece of thepuzzle.
We bring together a team andhelp our clients navigate
(19:12):
through how real estate impactstheir life, whether it's their
personal home, whether it'stheir investment properties,
whether it's thinking ahead withtheir estate and the legacy
they want to leave, and beingstrategic with it.
And again, just selling orhelping buy properties is just
one piece of the puzzle.
It's looking at it from aconsultant standpoint in a much
bigger picture.
(19:33):
We'd love to have theconversation with you about that
.
Find us online atrealestatebygregcom.
Follow us on social media.
You can follow us also.
You can see our blogs ongeorgerilestategroupradiocom.
You know there's a lot of peopletalking about waiting about the
market in regards to themortgage rates.
The mortgage rates are a bigtopic right now and after the
(19:57):
most recent jobs report came outweaker than expected, the bond
market actually reactedinstantly and, as a result, the
early August mortgage ratesdropped to their lowest point so
far this year.
Mortgage rates dropped to theirlowest point so far this year
and, while that may not soundlike a big deal, pretty much
every buyer has been waiting forrates to fall, and even a
(20:17):
seemingly small drop like thisignites and reignites the hope
that we're finally going to seerates trend down.
But what's realistic to expect?
According to the latest trend,rates aren't expected to fall
dramatically anytime soon.
They are experts projectthey'll stay somewhere in the
mid to low 6% range through 2026.
So, in other words, no bigchanges are expected.
(20:39):
This is on our most recent blog.
You can find this ongeorgioroestategroupradiocom.
But small shifts like the onewe saw this month of July are
still likely, and so every timethere's changing economic news,
there's a chance mortgage rateswill react.
But should you just be youshould.
Here's the thing, though thechange, the challenge with that
(21:02):
is waiting for the rates to drop, because, again, they're always
fluctuating but finding outwhat you qualify for today, and
you can always.
If rates have a massive drop,you can refinance later, but
qualifying for what you canafford today.
As I mentioned earlier in theshow, sellers are more
negotiable than they've everbeen before.
In the month of July, theaverage sales price to list
(21:23):
price ratio was at 93%.
That's significant.
That was actually a three and ahalf percent drop.
It was actually 93.4% oforiginal list price received to
what it sold for.
That's significant, and so ifyou can, as a buyer, qualify in
today's interest rates, you'regoing to get a good deal.
(21:43):
So the thing is, the magicnumber most buyers seem to be
watching for is 6%.
It's not just a psychologicalbenchmark, it has real impact.
A recent report from theNational Association of Realtors
says if rates reach 6%, 5.5million more households could
afford the median home price,roughly 550,000 people would buy
(22:07):
a home within the next 12 to 18months.
That's a lot of pent-up demandjust waiting for the green light
.
And so if you look back at thegraph that we have on our blog
again, fannie Mae thinks we'llhit that threshold next year,
and so it raises an importantquestion does it really make
sense to wait?
But the trade-off is this if youwait for the 6%, to wait.
(22:32):
But the trade-off is this Ifyou wait for the 6%, you need to
realize a lot of other peopleare too.
So when rates continue to inchdown and more buyers jump into
the market, you're going to havethe competition again.
Right now you have a lot ofchoices.
Right now you have sellerscoming off their price.
Prices are probably going to goup if we see increased demand.
So the.
National Association of Realtorssaid this homebuyers wishing
(22:53):
for the lower mortgage interestrates may eventually get their
wish, but for now they'll haveto decide whether it's better to
wait or jump into the market.
So the unique window thatexists right now.
Inventory is up, which meansmore choices as a buyer.
Price growth has slowed down.
We've talked about that here.
Locally.
Our prices have come down.
Well, they've come down alittle bit.
(23:14):
They've softened.
You certainly see all the pricereductions and then the sellers
are coming off their price more, so there's more realistic
pricing and then again, moreroom for negotiations.
You could get a better deal.
So all these opportunitiescould go away when rates fall
and then the demand surges, andso the NAR says this buyers who
(23:37):
are holding out for a lowermortgage rate be missing out on
a key opportunity in the market.
So rates aren't expected, arenot expected to hit 6% this year
, but when they do, you're goingto deal with more competition
as buyers jump back in.
So right now, as a buyer, youhave less pressure, more
negotiating power, and thatopportunity is actually here
(23:59):
right now.
So we don't know how longyou'll last, and it certainly
depends on what happens in theeconomy.
So give us a call 828-393-0134,828-393-0134.
You can find us online atrealestatebygregcom.
We'd love to have theconversation.
(24:23):
I heard a quote in regards to.
I love this quote actually to.
I love this quote actually.
You know the the for mostpeople in regards to work and
versus play.
This, this idea that what seemslike work for others is play
for me.
And this was a con.
This is a quote by Naval andessentially it's it's about
(24:44):
aligning your life and career soclosely with your natural
interests, your talents andcuriosities that what drains
most people actually energizesyou.
So for a lot of people, work isan obligation that if they stop
doing it, they suddenly becamefinancially free.
For Naval, the goal is to findan arena where the opposite is
(25:07):
true, where you'd keep doing theactivity even if money were no
object.
And so this is thinking about.
All of us have to look at this.
You don't have to look atanything, but when you look at
your life and your career andwhat your work is doing, it's
about the skill and passionalignment.
The skill is you're naturallygood at it or the learning curve
feels easy.
The passion could be you enjoyit so much that it doesn't feel
(25:32):
like a chore, and so when youalign those, your output of
effort skyrockets because you'rerunning on intrinsic motivation
, not willpower.
So you have an energy advantage.
There's compounding effects andyou, you have an energy
advantage, there's compoundingeffects and you can have an
unfair advantage.
You know you're competingagainst people who burn out
faster in the same area.
(25:53):
So it could be an investor whoenjoys reading market reports
the way others read novels.
It could be a real estate agentwho genuinely loves touring
homes and meeting people.
For them, the grind of the coldcalls feels like a social event
.
So finding your play in yourwork and Naval, he's the founder
(26:14):
of Angel, the Angel List and aninvestment.
He's a billionaire.
He says this.
Notice where time disappears,tasks, where you lose track of
hours are signals.
Listen to envy.
Who do you envy?
What are they doing?
And that's a clue of what youactually want.
And then look for natural pulls.
(26:34):
Hobbies you'd pay to do areoften things you could build
into a career.
It doesn't mean avoiding allhard work Again.
Hard work might come easier foryou, but it means choosing a
direction where even the hardparts are tolerable, because the
game itself isn't worth playingAgain.
(26:55):
So also this might come intoplay with planning ahead for
your estate.
For a lot of people, estateplanning can feel like a
headache the paperwork, theproperty values, tax implication
, figuring out who gets what.
It can be overwhelming.
But for us, this is where wecome alive.
(27:17):
We love helping through it,sorting through it, combining
the legal advice of your estateattorney, combining it with our
tax advisors and the real estate.
We love putting a plan in placeat the George Real Estate Group
.
And so what might feel like amountain for you is actually a
challenge we can't wait totackle, and we've worked with
(27:37):
families who've waited until thelast minute.
We've seen how stressful thatcan be.
We've also seen the relief inclients' eyes when everything is
in order, the home's properlytitled, the real estate is
correctly valued, we have a planin place when you're passing it
along to your loved ones, toyour next generation.
That's why planning ahead andagain it's the combination of
(27:58):
your tax advisor, your estateattorney and your real estate
professional Planning aheadisn't just smart, it's actually
a gift to your loved ones.
And so, in regards to your realestate, do we sell the property
before your estate receives itor do you keep it in the family?
How will it be divided fairly?
(28:19):
What's the current market value?
What are tax strategies thatcould help your heirs save money
?
So when we work through thesequestions now and again as a
team, getting these answers nowmeans your wishes are honored
later without unnecessary stressor conflict.
So if real estate and estateplanning and investment
(28:42):
management feels like work foryou in tax strategies, let us
help you.
It is play for us.
We'll talk through your options, connect you with our trusted
estate attorneys, our taxstrategists.
We'll make sure your realestate fits perfectly into your
(29:03):
plan.
In the George Real Estate Group,we are helping our clients plan
ahead today so your family'staken care of tomorrow.
We'd love to connect.
Call us directly at828-393-0134.
828-393-0134.
We'd love to connect.
We'd love to have theconversation.
This is, like I said, play forus.
(29:23):
We're a lot of people.
It's work.
We are so passionate andenthusiastic about helping our
clients navigate through all ofthis.
And it's not just the buyingand selling of real estate.
It's the bigger plan, it's thebigger picture.
We're here tomorrow morning,every Friday morning at 845,
sponsoring the Hometown HeroSeries.
We've been doing that for anumber of years.
We're here every Thursdaymorning at 10 am.
However, we can help.
(29:45):
We're so enthusiastic about itand we'd love to have the
conversation.
Give us a call 828-393-0134.
Find us online atrealestatebygregcom.
Connect with us, stop by ouroffice.
We just love having theconversation.
We love playing in the realestate world.
And it's not play, I mean, itjust comes naturally for us.
Have a great day, have a greatweek.
(30:19):
We'll see you tomorrow morning.
Maybe the house feels a littletoo big these days, the stairs a
little steeper, the pace oflife a little too fast.
But what if your next movewasn't about letting go.
It was about making space Forpeace, for freedom, for what
matters most?
At the George Real Estate Group, we understand that real estate
isn't just about the house.
(30:39):
It's about transitions, timingand trust.
We've helped thousands offamilies in Western North
Carolina make smart, thoughtfulmoves closer to nature, closer
to family, closer to home.
So when you're ready to rightsize, simplify or start fresh,
we'll be here.
The George Real Estate GroupLocal, trusted, proven.
(31:04):
Call us today 828-393-0134.
Find us online atrealestatebygregcom, because
your next chapter deserves tofeel just right.
Speaker 2 (31:15):
Thank you for
listening to the George Real
Estate Group podcast.
Tune in next time for moreindustry news updates and real
estate tips.
You can reach Greg, the GeorgeReal Estate Group, at
828-393-0134 or atrealestatebygregcom.