George Real Estate Group Radio Broadcast

Beyond the Sale: Strategic Real Estate Planning

• George Real Estate Group

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What drives success in real estate? Knowledge, strategy, and understanding the bigger picture beyond just transactions. Today we delve into the remarkable 60% national home price appreciation over the past five years and what this means for homeowners who may be sitting on significantly more equity than they realize.

The numbers tell a compelling story in Henderson County, where single-family homes now average $550,000—up $25,000 from last year—despite persistently high mortgage rates. With only 409 active listings against monthly sales of 124 homes, the fundamental supply-demand imbalance continues driving appreciation, with experts projecting steady growth through at least 2029. We break down why waiting for "perfect" market conditions often becomes costlier than taking action, as time in the market consistently outperforms attempts at timing the market.

Beyond traditional homebuying, we explore how strategic real estate planning can transform your financial future. From the substantial tax benefits of primary residence sales ($250,000 individual/$500,000 married exemptions) to sophisticated investment approaches like 1031 exchanges, passive institutional investments, and charitable remainder trusts, real estate offers powerful tools for wealth preservation and legacy creation. The local market's strength—where one-third of purchases are cash transactions—underscores both the enduring appeal and opportunity within our community.

Drawing inspiration from Andrew Carnegie's remarkable journey from factory worker to philanthropist, we reflect on how knowledge transforms possibilities. Whether you're considering your first purchase, planning your next move, or strategizing about investment properties, informed decision-making remains the cornerstone of success. Connect with us at 828-393-0134 or realestatebygregcom to explore how our experienced team can help you navigate these possibilities with no obligation or pressure—just candid, strategic guidance tailored to your unique situation.

Speaker 1:

Hello friends, thank you so much for being here. This is the George Real Estate Group podcast, which is a production of our live weekly radio shows hosted on multiple radio stations here in Hendersonville, north Carolina. The George Real Estate Group serves Western North Carolina and upstate South Carolina and it is a privilege to share positive news about our local real estate market and community. Thanks so much for subscribing and, of course, if you have any real estate questions or if we can help you in any way, be sure to reach out. Visit us at georgerealestategroupradiocom for more information. Good morning and welcome to the George Real Estate Group live radio broadcast here in the queue every Monday morning, sharing with you positive news about your local real estate market and community. Grateful to be here with you. What a day it is, with this new time change and enjoying the later evening, the sun in the evening, and it was surprising for it to be so dark this morning. Again, there's some adjusting, there's some getting used to, but again looking forward to the late sunlight in the day and just grateful to be here with you. Can believe we are already into March and March this year's flying by. The local real estate market remains strong and we'll discuss what's happening locally. We'll discuss what's happening nationally with the real estate market. If you're tuning in for the first time ever, the George Real Estate Group is located in Flat Rock and we serve all of Western North Carolina and upstate South Carolina. We have agents that live in both states. We have an incredible team, we have an incredible group of agents, we have incredible staff and we are so enthusiastic about advocating and facilitating our clients' real estate needs as they navigate through.

Speaker 1:

Do I sell before I buy? Do I buy before I sell? Am I selling and moving into a retirement community? Maybe you've walked through the challenge of a loss of a loved one and we've worked with estates and attorneys and families that are. Again, there's all the types of reasons that one might be looking to buy or sell. You might even own a portfolio of investment properties and maybe you're considering how do I approach this from a tax strategy, from a 1031 exchange, or maybe I'm considering a charitable remainder unit trust. I mean there's multiple ways to be strategic with your real estate. Whether it's, again, maybe you want to leave a legacy for the community and we've helped navigate through that with our clients. Again, you might have commercial property, you might have land. You might have a condo or a townhome, I mean whatever it might be. We've had the privilege of walking alongside with our clients.

Speaker 1:

I mean the benefit of personal real estate. If you've lived in the home two out of a five-year period as an individual, the first $250,000 of profit is not taxed. And again, what you paid for it, what you've put into it, your improvements, plus the cost of selling it, what you've put into it, your improvements, plus the cost of selling it, plus the $250,000, all of that is tax-free as an individual If you lived in the home two out of a five-year period. If you're married, it's $500,000. Now the other reality is if you or someone you know they've lost their loved one, their spouse, if you or someone you know they've lost their loved one, their spouse, the remaining spouse actually has two years from the passing of their spouse to still take advantage of the $500,000 of tax-free money. And again, that's on top of what you paid for it and on top of what you've improved it. And again, we don't recommend you doing anything, of course, in that first year of grieving. However, you have two years from the passing of your spouse to still take advantage of the $500,000 tax-free tax exemption of your personal home.

Speaker 1:

I mean, this is significant. And so when we work with our clients on real estate, it's not just the we're going to help you sell, we're going to help you buy, no, it's the. What's the bigger picture? What are the tax implications? How do you strategically go about this? What does this make sense from a?

Speaker 1:

You know, maybe you're considering a 1031 exchange and that's where you can sell investment properties and move it into something else. Maybe your current investment's not getting the return on it that you'd like, your investment property, your current investments not getting the return on it that you'd like your investment property. We have options. We actually have access to institutional real estate investments where you can buy into these large real estate portfolios that also qualify for 1031 exchange. You don't have to just buy something here locally. You could go from an active ownership of an investment property here to a passive investment into, you know, like I said, these institutional real estate.

Speaker 1:

We have so many options that we have access to that we can share and we can advise and we can coach and we can give you information, whether it's your personal home that you're looking to buy or sell, or your investment properties or your real estate portfolio. Maybe it's a commercial property, maybe it's your land that you own, maybe you're a farmer and you've been leasing out land and looking at other options. We have a lot of options that you could consider. And if you want to be strategic with giving back to the community, there's some very strategic ways to actually you can give your real estate back to a nonprofit of your choice and you can still remain and still retain the revenue from it. There's some really cool ways to go about utilizing real estate, taking advantage of maximizing the tax code to your advantage. And, again, whether it's the giving it to a charity, whether it's thinking about it from a legacy standpoint from your children, we are helping so many of our clients, not just with their personal buying and selling, but also with their real estate investments and, again, we can be strategic with that.

Speaker 1:

But we'd love to have the conversation. There's no cost, there's no obligation. You can give us a call at 828-393-0134, 828-393-0134. You can also find us online at realestatebygregcom. You can also follow us on social media. We're on Facebook and Instagram, and then we also podcast all of our radio shows. You can find us on your favorite podcast platform and we'd love to connect with you there or just stop by our office. We'd love to visit with you.

Speaker 1:

Our office is in a strategic location. We are next to some incredible local businesses and restaurants. We're right next door to the Wrinkled Egg and Flat Rock, the Flat Rock Bakery, hubba Hubba Barbecue, campfire Grill, hubba Lou, our friends at Rent, w&c. I mean there's a number of local businesses there that we support. Of course, if you stop in there and haven't been there before, certainly mention to them that you've heard about them on the radio through the George Rilsick Group, their neighbors, drill Set Group, their neighbors.

Speaker 1:

There's just so many wonderful local businesses that are in the area, specifically in the Flat Rock area, in the East Flat Rock area. There's a new barber shop there in the East Flat Rock area called the man Cave. There was a very well-known barber that used to be in that location Oscar. That had served, I think he'd cut hair for some 60 years. He passed during COVID and then that building ended up getting purchased and that legacy continued with the man Cave, which is a barber shop for men and women and maybe that's not even the right term a barbershop, but check it out there in East Flat Rock, the man Cave. But, again, great local businesses here in the area and we want to support them, we want to encourage them, we want to, and the local businesses that are there along the Rainbow Row and Flat Rock, I mean, tell them.

Speaker 1:

You heard about them on the radio Again. Radio Works, we hear it all the time. We hear people calling in all the time about, uh, the radio. You know I always look and love stories. Um, uh, you know powerful stories about. You know how people have overcome, how people have, uh, they've, they've their past, their, their, their stories. They got to decide what their futures look like.

Speaker 1:

Andrew Carnegie Andrew Carnegie, you've heard of Carnegie. He was born very poor. He was born in Scotland in 1835, and his family immigrated from Scotland to America in 1848. Why would I bring up Andrew Carnegie? Well, this is incredible. He was in 1848, when he was 13,. He immigrated from Scotland to America and he worked long hours in a factory, earning $1.20. A week. Education wasn't an option until he found books and you know his, by the way, his father was a weaver. He struggled to find work in the Industrial Revolution, you know, reshaping, which reshaped the economy. Again, that was part of the reason why they were seeking a better life. When they immigrated to the United States, they went to Allegheny, pennsylvania, and again, at 13 years old, andrew had to help support his family, worked as a bobbin boy in the cotton mill, and so the 12-hour shift, six days a week, $1.20 a week.

Speaker 1:

But Carnegie's thirst for knowledge was unquenchable. One day he discovered an extraordinary opportunity. Colonel James Anderson, a local businessman, had opened his personal library to working boys every Saturday, and for Carnegie this was nothing short of life-changing. He devoured books on history, philosophy, literature, business, lessons that would shape his future more than any classroom ever could, and the power of self-education became clear to him and ignited an ambition that would drive him for the rest of his life.

Speaker 1:

At 14, he secured a job as a messenger boy for a telegraph company. He quickly stood out, memorizing names and locations while mastering telegraphy, eventually earning a promotion as a telegraph operator. And then his work ethic caught the attention of Thomas A Scott, the executive at a Pennsylvania railroad, who became his mentor. Under Scott's guidance, carnegie learned the inner workings of business, investing in savings and companies that benefited the railroad expansions. So this is again Carnegie's sharp instincts, plus his investments, paid off. He entered the steel industry in the 1870s and he really pioneered production materials that revolutionized manufacturing. This is wild. By the turn of the century he had built Carnegie Steel into the largest steel empire in the world and in 1901, he sold his company to JP Morgan for $480 million. That's equivalent to over $15 billion today.

Speaker 1:

But Carnegie had long believed that his wealth came with a responsibility. He said a man who dies rich dies disgraced. As he once wrote True to his word, he dedicated the rest of his life to philanthropy, ensuring that others had access to the same opportunities that shaped him and remembering the impact of Colonel Anderson's library. Carnegie's mission was to bring books to the masses. He funded the construction of over 2,500 public libraries worldwide and places where people from all backgrounds could educate themselves, and the Carnegie libraries, as they came to be known, still stand today in monuments to his belief in self-improvement through learning. And beyond libraries, he donated millions to education, scientific research, world peace initiatives, cultural institutions, leaving an incredible mark on history.

Speaker 1:

So Andrew Carnegie's legacy is not just in Steeler wealth. It was in knowledge and again transformed not only his own life but the countless lives of others and proving that the power of books can change the world. What you think about what you believe, your knowledge, the information that you have, the stories you tell yourself. Again, the tape that's playing in your head again, this boy, working for $1.20 a week, for 12 hours a day, six days a week, went on to have the legacy that he had, but it was truly the books that opened up his mind and shaped his future. Just a powerful story. And again a reminder of, again, just the power of of knowledge, the power of putting it to use. Also, the impact one person can have on another person and again, the compounding effect that, again, all the libraries that carnegie ended up, uh, you know, constructing all over the world. Just thought I'd give you some motivation there, love these stories that have come across and thought I'd share more about those stories. And again, we love those stories.

Speaker 1:

Again, real estate is about stories that when we work with our clients and hear their stories about you know what brought them here to the area, the businesses that they own, their. You know their retirement, what they're doing, the volunteering that they're doing, how people give back. I mean stories connect ourselves. And then again, the stories that we have, whether, again, the challenges that we face, things that we've overcome. Also, again, the beautiful things, the beautiful things of life. And then how we've been able to walk alongside our clients through real estate, because real estate is so essential and people choose to move here. They're living here, whatever story, wherever they came from. And then they decided to live here in the beautiful Hendersonville, the beautiful western North Carolina, and then making our place a better place. It's a privilege and honor to help our clients navigate through the buying and selling process and again in their investments as well.

Speaker 1:

You can give us a call at 828-393-0134. We will dive into some of the numbers, so stay tuned in. We're here on the queue live every Monday morning, but we have a short break coming up, so stay. And. We're here on the Q live every Monday morning, but we have a short break coming up, so stay tuned in, we'll be right back. Good morning and welcome back. You're listening to the George Real Estate Group live radio broadcast here in the Q every Monday morning. We're so grateful to be here with you, sharing with you positive news about the local real estate market and community also the national real estate market.

Speaker 1:

Over the last five years, home prices have risen dramatically and if you own a home, that means its value has probably gone up a lot in a relatively short time. This is wild. Nationally, prices are up nearly 60% compared to 2019. 60% Normally they rise 2% to 5% a year. National average was 57.1% over the last five years. So your home, what this might mean for you, your home may be worth a lot more than what you think and if selling's been on your mind, you can use that bigger than expected return to power, your next move. And so, if you're curious what your home is worth, the market's still moving. I mean nationally the market, and here, specifically locally. Over the last five years we've seen prices rise dramatically. And then for here locally, the average single family home price over the last 12 months in Henderson County is now at $5.50 and change. We still have low inventory levels.

Speaker 1:

As of this morning, only some 409 active single-family homes on the market. Some over the last 12 months, 1,488 single-family homes sold. That's 124 a month. We're averaging the average single-family home price at $550,000. And that's up some $25,000 from the previous 12 months at $525,000. I mean just in the last seven days.

Speaker 1:

To continue to give you a snapshot of what's going on, there's been 41 new listings. There's been 41 new listings. There's been 30 price drops. I mean price drops are still part of what's happening. I mean, I think there was this sort of adjustment because I mean prices were going up so dramatically and they've pulled back a little bit, but they're still strong. We also in the last seven days there's been 30 homes go under contract. So that's where 30 homes went under contract, 41 new listings and then the last seven days, which is the beginning of the month. This is going to be lighter than a normal. Maybe towards the end of the week 18 homes went under contract in the excuse me 18 homes closed in the last seven days. 30 homes went under contract in the last seven days. Again, just a seven-day snapshot here locally, and I'm referring to single-family homes, specifically to Henderson County. But we continue to see strong demand here locally. The demand continues, the prices are up. I mean, the experts are saying prices are only going up At one point or another.

Speaker 1:

You've probably heard somebody say yesterday was the best time to buy a home, but the next best time is today and that's because nationally, home prices continue to rise and that's true here locally and that's with mortgage rates still stubbornly high and home prices are going up. You might be finding yourself holding out for prices to fall or waiting for interest rates to go down. But trying to time the market is impossible. It's you know if you're waiting for the perfect rate or waiting for the. You know, there's you know. Here's the truth. Waiting for the right moment could actually cost you in the long run. Long run, prices are still rising, but just now more at a normal pace, like I shared earlier, some almost 60% appreciation in the last five years. But now this is normal. The annual price increases of 3% to 4% are normal.

Speaker 1:

I think the idea of waiting, the idea that prices will drop dramatically, is wishful thinking In most markets. According to a home price expectation survey from Fannie Mae, industry analysts are saying prices are projected to keep rising through at least 2029. So it's no longer these crazy jumps in prices. Experts project a steady and sustainable increase of 3% to 4% a year nationally, and so the good news is this is a much more normal pace, a welcome sign for hopeful buyers. I mean what this means for you.

Speaker 1:

While it's tempting to wait for prices or mortgage rates to decline before you buy, what you'll need to consider is this Tomorrow's home prices will be higher than today's. The longer you wait, the more the purchase price will go up, and then waiting for the perfect mortgage rate or a price drop may backfire. Even if rates dip slightly, rising home prices could still make waiting more expensive overall. Also, buying now means building equity sooner, so home values are rising, which means your investments start growing as soon as you buy. For example, if you let's put some, just throw some real numbers If you purchased a home for $400,000 today and based on these price forecasts, it's expected to go up in value by more than $83,000 over the next five years. That would be based on a three to 4% appreciation annually over the next five years, and so that's significant. And, of course, I've mentioned this before.

Speaker 1:

Why are prices still going up and why are prices not going down? Well, it all comes to supply and demand. As I shared earlier, only some 400 active single-family homes on the market in Henderson County, and we're averaging some 124 a month selling. So, and even though there's more homes in the market right now than there were the last time or last year or even last month, there still isn't enough of them on the market for all the buyers that want to purchase them. And so this is just a supply and demand reality and this is a quote from Redfin Prices will rise at a pace similar to that of the second half of 2024 because we don't expect there to be enough new inventory to meet demand.

Speaker 1:

And this is, by the way, you can find this on our most recent blog. You can go to georgerilestategroupradiocom. Georgerilestategroupradiocom. You can see our podcast there. You can also see our blogs. All of this is accessible through our blogs, but the bottom line is this time in the market, time and this is true for stocks time in the market beats timing the market.

Speaker 1:

If you're debating whether to buy now or wait, remember real estate rewards those who get in the market, not those who try to time it perfectly. Let me say that again Real estate rewards those who get in the market, not those who try to time it perfectly. In today's market, we know it's challenging and it has its challenges, and this is where working with a real estate professional that understands the nuances, understands the local market, exploring at the George Real Estate Group whether it's our incredible agents combined with our lenders and our inspectors and our attorneys and our team that makes it all possible our appraisers, our surveyors, you name it we have everybody in place to help you navigate through the buying process. So the key is making a move when it's right for you, when it makes sense for you, rather than waiting for the perfect scenario that may never arrive. And so we'd love to have the conversation. There's no pressure, there's no cost, there's no obligation. You can give us a call at 828-393-0134, 828-393-0134. Give us a call, we'd love to have the conversation. Find us online at realestatebygregcom.

Speaker 1:

And again, we've been averaging in Henderson County, not including condos or townhomes or land. We use the single family homes as a barometer. Now, condos and townhomes tend to be about 20% of our market, and then single family homes make up the majority of our market, but we're averaging 124 single-family homes a month selling. There's only 409 active homes on the market right now. Now if you took out the new construction, there's even less. I mean it's about 25% of our market is new construction. So if you take out the proposed or the under construction or the ones that are even completed, when you look at just the existing inventory resale homes, the market has even lower inventory. So we are seeing continued demand even with these interest rates. About a third of our every one out of three homes sold in Henderson County are cash, so we continue to see cash buyers and we also continue to see multiple offers. Every one out of three homes sold in Henderson County are cash. So we continue to see cash buyers and we also continue to see multiple offers.

Speaker 1:

Now, if your home's overpriced, you're not going to see multiple offers and also you cannot underprice your home, and pricing is a whole, its own strategy and something we talk about. And how do we help our clients navigate through? How do you price your home? What is your home really worth? And again, we'd love to have that consultation. There's no pressure, there's no cost, there's no obligation. We have a very candid approach and kind and candid, it's both. And again, when we look at your home, we look at your unique situation, your unique home. We look at your unique situation, your unique home. We look at it in the context of the market what you're competing against, what's under contract, what's sold. We'd love to have that conversation and I mentioned earlier, we've had the privilege of helping our clients navigate through their investment properties.

Speaker 1:

And what does that look like in your estate planning in regards to real estate? What does that look like in your estate planning in regards to real estate? What does that look like in your strategic tax strategy and also how you're giving that kind of legacy. Are you leaving it back to the community? There are very strategic ways to take advantage of the tax code in regards to there's a 1031 exchange. There's also a charitable remainder, trust. I mean there's multiple ways to be strategic with your real estate in regards to not just your personal home, but if you have a portfolio of real estate or maybe you have land, maybe you want to be there there's. Maybe you have active investments, maybe you want to move into more of a passive investment. There are a lot of options that you can consider investment. There are a lot of options that you can consider and we have access to incredible advisors and tax advisors and a team that can help you and we've helped navigate through.

Speaker 1:

How does real estate play out in your overall plan? It's not just your personal home which is so critical and we've helped actually quickly approaching 1,500 families to help throughout the years in my career. We're so grateful. I've joked before I'm an overnight success. It's taken 20 years of showing up every day. We're grateful for our team. We're grateful for the community. We have an incredible team in place. We have incredible staff with incredible systems and models and it's proven and predictable and it's a process that we follow and it's thinking outside the box. It's also thinking bigger than just your personal home. How does this play into your overall strategy of what you want your life to look like and how does this impact? And again, so, if you're out there and you have investment properties, if you have commercial properties, if you have land and you want to think strategically about how that looks like, you can give us a call. We'd love to have the conversation. Give us a call 828-393-0134.

Speaker 1:

We're here every Monday morning right after the nine o'clock hour and we're so honored to serve the community through real estate. You can follow us on our podcast. You can find us online. You can find us online. You can find us on social media. You can find us realestatebygregcom or stop by our office there in Flat Rock. Have a wonderful day, have a wonderful Monday, enjoy this extra sunlight and we'll see you next week.

Speaker 1:

The market changes. Interest rates rise and fall. Headlines tell a different story every day, but here's what hasn't changed People still need to buy and sell homes. At the George Real Estate Group, we've been navigating the ups and downs of the real estate market for over 20 years. We've seen it all and we know what it takes to sell your home for top dollar, no matter the conditions. Buyers are still out there and with the right strategy, marketing and negotiation, your home can sell faster and for more than you might think. If you've been waiting for the perfect time to sell, it's now. Let's sit down, talk strategy and make a plan. Call the George Real Estate Group today at 828-393-0134 and find us online at realestatebygregcom. And don't forget to connect with us on social media and follow our podcast.

Speaker 2:

The George Real Estate Group has the experience of selling over 1,200 properties and serving over 1,200 families with their real estate needs in Henderson County and throughout western North Carolina. The George Real Estate Group is located in Flat Rock, north Carolina, near Hendersonville in Henderson County. You can find them online at realestatebygregcom. The George Real Estate Group can be reached at 828-393-0134 or stop by their office at 2720 Greenville Highway, Flat Rock, north Carolina. Tune in live each week on Monday mornings at 9.05 on WTZQ FM 95.3 and 1600 AM or stream online at WTZQcom.