George Real Estate Group Radio Broadcast

Making Tax-Smart Real Estate Moves

• George Real Estate Group

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The real estate market in Western North Carolina continues to defy expectations. Despite shifting conditions, Henderson County has seen more homes sold through July than during the same period last year. While days on market are increasing and sellers are becoming more negotiable, home values remain remarkably stable—creating a unique window of opportunity for buyers and sellers alike.

Our latest market analysis reveals a fascinating trend: the percentage of original list price received has dropped to 93.4% in July, giving buyers unprecedented negotiating power. Simultaneously, inventory levels have increased 12% year-to-date, offering more choices without the frenzied competition of recent years. For sellers, understanding these dynamics is crucial to pricing strategy and expectations.

Beyond market statistics, we explore the substantial tax advantages of real estate ownership that many overlook. From the $250,000 capital gains exclusion ($500,000 for married couples) to little-known provisions like a surviving spouse's ability to use their deceased partner's exemption, strategic property decisions can save tens or even hundreds of thousands in taxes. We also delve into investment property benefits, including depreciation, expense deductions, and 1031 exchanges that allow wealth-building through tax deferral.

Recent mortgage rate movements have sparked renewed interest among potential buyers. After rates briefly touched their lowest point this year, many are wondering whether to buy now or wait for further decreases. The National Association of Realtors estimates that when rates reach 6%, approximately 5.5 million more households could afford the median home price—but with that affordability comes increased competition. Today's buyers face a critical decision: act now with greater negotiating leverage or wait for potentially lower rates but fewer options.

Whether you're buying your first home, building an investment portfolio, or planning your estate, the current market offers strategic opportunities for those who understand the data. The George Real Estate Group brings over 100 years of combined experience to help you navigate these decisions with confidence. Connect with us at 828-393-0134 or realestatebygregcom to discover how we can turn complex real estate challenges into your advantage.

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 on WHKP Every Thursday morning, bringing you positive news about your local real estate market and community. We're so grateful to be here with you, sharing with you what's going on in the local real estate market, what's going on in the community so much to cover this morning. If you're tuning in for the first time ever, the George Real Estate Group, we've had the privilege of helping over 1, almost 1600 families throughout the years, almost $400 million in real estate. We've helped move and people, whether it's their personal home, investment properties, land developments, commercial. We're grateful to serve the community through real estate and, if you're thinking of buying or selling or investing in real estate, we'd love to have the conversation. There's no pressure, there's no cost, there's no obligation to give us a call or have the conversation. We talk with people every single day and they're discussing their goals, their dreams, their life. Life happens, therefore, real estate happens, and it's a privilege and honor to help our clients navigate through real estate and how that might impact whether it's your personal home, your investment property, maybe it's an estate home, maybe it's land that your family's had the farm, the family farm and there's so many nuances and layers to all of it and every situation is unique and different. Every property's unique and different, but we have, you know, over a hundred years combined experience at the George Real Estate Group and we'd love to interview for the job. You can call us directly at 828-393-0134, 828-393-0134. You can also find us online at realestatebygregcom. You can also look up georgerealestategroupradiocom. You can stop by our office there in Flat Rock, 2720 Greenville Highway, there on Rainbow Row I know the joke might get old, but the dangerous location of Rainbow Row between the Flat Rock Bakery, hubba Hubba Barbecue, campfire Grill, hubba Lou, the Wrinkled Egg, all those great local and independent businesses, the George Real Estate Group's local and independent as well. We have an incredible group of agents, incredible staff. We're so enthusiastic and we love helping our clients navigate through the buying and selling process.

Speaker 1:

We podcast all of our radio shows. You can find that on your favorite podcast platform. We've been doing the podcast for a number of years so we have a number of radio shows. One of the other radio shows we have is every Friday morning at 845,. We sponsor the Hometown Heroes series. We've been doing that for a number of years, which we love doing. We love hearing the stories, sharing stories and meeting incredible men and women serving the community here. It's also hard to believe we're coming up on almost a year since Helene and we'll be doing a lot more with that. But Michelle Edwards with the Polk Referral Center Michelle heads this source of help for residents who were displaced or had property damage during Helene and we're going to have a conversation with Michelle and honor her as our hometown hero and learn about more ways to help our community rebuild after Helene. We're here every Friday morning. If you're curious and want to go back and hear some of our other hometown hero segments, you can find that on our podcast, our radio show.

Speaker 1:

We're so grateful to serve the community through real estate. The real estate market is moving and we're going to talk about a number of things today. The market continues to move. Just to give a quick snapshot, just the last seven days in Henderson County and then we'll look at what's happened year to date, because there is a lot in positive news. Certainly some shifts in the market, but the market's still moving. In the last seven days in Henderson County there's been 39 new listings. A common trend is price decreases, price drops 73 price drops in the last seven days there's been this is really positive there's been 54 homes go under contract in the last seven days and then 33 homes closed. The market is staying strong. It's staying very positive. So if we look at year to date I mean if we look at year to date what's happening with the market? The market continues to move and again it seems to be you know it's so interesting Through the end of July there's been actually more homes sold in Henderson County, more homes sold in Henderson County year to date through the end of July than there were through the end of July last year.

Speaker 1:

So that's incredible to report. Also, the prices are holding. The average price is staying pretty steady, really within a couple of percents. Is there much of a difference in the average home price? Also in the median home price? So really not much is changing in that regard, which is amazing to report that the prices are holding. Probably the biggest change is the days on market.

Speaker 1:

In addition to the list to sales price received, year to date through the end of July, year to date through the end of July, the percentage of the original list price received is at 95.4%, which is down 1% from the previous same timeframe. But if you look at the month of July compared to the previous July, that number is actually down to 93.4%, almost a 3.5% drop. So what it's telling us is sellers are coming off their prices. A percent of original list price received is down to 93.4% in the month of July. Also, inventory levels have been increasing. Year to date through the end of July 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 closed sales. That's why our prices are holding. But because of the increase in inventory and days on market are longer, buyers are taking a little bit longer. The listing date to the close date is actually at 115 days now through the end of July, which is up almost 19% increase in the days to go to closing. And then the days until a home goes under contract is at two months, which is up that's over 37% increase. And then cumulatively, from going on the market to going under contract's up 40%. So I mean time on the market's increasing and it's just what it is with our market. So that's where the market's softening, the market's softening, and yet in the context of the home values, in context of the price, in context of the market, again it's about supply and demand and again it's so important to look at the market.

Speaker 1:

Now I heard a concept, interestingly, that I love this. There's even an acronym for this. But have you heard of the phrase? But of course there's obvious exceptions 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 for but of course there's obvious exceptions. Have you ever noticed when someone, have you ever noticed the moment that someone makes a bold, sweeping statement? There's always that one person ready to jump in and say well, actually, and Scott Adams, the creator 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.

Speaker 1:

Of course there's obvious exceptions and it's a fun eye-opening reminder that in life, business and real estate, absolutes are rare. You know the origin. Scott Adams coined it to describe how people often undermine a general point by focusing on rare outliers. For example, you might say homes priced correctly sell faster and someone will say not true. My cousin listed $50,000 over the market and sold in two days. And the cousin's story might be true, but it's an exception, not the rule. And the cousin's story might be true, but it's an exception, not the rule.

Speaker 1:

So why this matters in real estate? You know general rules are helpful for guiding our clients. You know marketing data, pricing trends and strategies are based on the majority, not the rare exception. You know exceptions can mislead when buyers or sellers are fixated on them, thinking they're the norm. Example all homes need staging to sell, but of course there's always an exception that one neglected fixer-upper that sold in a bidding war last spring. The reality is that was a unique market, not today's environment.

Speaker 1:

How this can apply beyond real estate and business. You need experience to start a company, but of course there's always the exception. Yes, there are self-taught founders who made it big and then life, breakfast is the most important meal of the day and of course the exception except for the millions who skip it are just fine. In sports, defense wins championships, unless you're the 1999 St Louis Rams. So it's okay to recognize exceptions, but don't let them replace common sense or the overwhelming trends. So when you hear a strong generalization, ask is it the rule or the rare exception? Am I making a decision based on data or on a one-off story? So in real estate, the rules work most of the time and the exceptions are interesting stories, but they're not a strategy. And remember, rules exist for a reason. Exceptions make for great dinner stories because they don't pay the mortgage.

Speaker 1:

So this is where you know, especially in real estate. You know it's the pricing your home. Pricing your home is so critical, and of course there's there's, but of course there's always the obvious exceptions. You have the neighbor that sold it for for more. You know the rule is price your home correctly, stage it, market it well and it will sell faster for more money. Every now and then someone throws up a sign in the yard prices 20% over the market and still 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 hot seller's market, buyers may waive inspections and bid high, but of course there are obvious exceptions. In today's market with more inventory, that's rare. So again, don't build your plan on someone else's rare exception. Use proven strategies as your foundation.

Speaker 1:

Here's an example for and we've dove into the world of 1031 exchanges the rule is sell an investment property and pay capital gain taxes. The exception a 1031 exchange, lets you defer those taxes by reinvesting the proceeds into another like-kind property. So again, you can property. So again you can move your commercial real estate and sell it and move it and you can defer the capital gains. You know the thing is not everybody qualifies and also there's timelines involved. This is why we work hand in hand with our real estate investors to make sure they don't miss the 45 day identification period or the 180-day closing deadline, so you don't lose the deferral. So again, there's all of these.

Speaker 1:

Most of the time, success in real estate comes from following the proven rules. But if you're working with a professional, sometimes the right exception can change your financial future. But of course there are always, there's always obvious exceptions. The rules are the foundation, but the exceptions, when they're the right fit can be game changers. So again, we dive into this. We talk about this all the time and help our clients with that.

Speaker 1:

Talking about tax advantages and I've mentioned this before on the radio program if you could grow your wealth, live in a home you love and keep more of your hard-earned money out of Uncle Sam's pocket, would you? And of course, one of the most powerful tools in your financial toolkit is real estate and the tax advantages that come with it, whether it's your primary home, an investment property or a property you swap into the 1031 exchange. Most people are aware of this, but the primary residence tax advantages Homeowners can deduct interest paid on mortgages up to certain limits, which can reduce taxable income. Also, property taxes may be deductible, again depending on what state you're in. And then capital gains exclusion when you sell your primary residence and you've lived there for two of the last five years, you may exclude up to $250,000 in capital gains and if you're married it's $500,000. You're actually allowed to exclude up to $1 million $250,000 per person over 18 years old that's lived in the home.

Speaker 1:

Also another caveat or a nuance to that, and again, we've walked alongside our clients in the beautiful, joyful moments of life and we've walked alongside our clients in the heavy moments where loss of a loved one or divorce or job loss I mean life happens, therefore real estate happens. It can be really happy and joyful reasons why people are buying and selling. It can be just very challenging, honest reasons why people are buying and selling and we've walked alongside with our clients in those moments where they've lost a loved one and a spouse. Now and again they say don't do anything for the first year. You know, in regards to grief, in regards to making big decisions. But did you know that the surviving spouse can take advantage of their spouses? To see spouses $250,000 deduction. You know exemption. So as long as you sell it within two years after their passing, you can take advantage of their $250,000 in exclusion of capital gains. This can be life-changing and it is life-changing for our clients, especially as a lot of our clients, after they lost a loved one, they're downsizing, they're moving a loved one, they're downsizing, they're moving back with family, they're moving into a retirement community and imagine having an additional $250,000 tax-free. And that's just part of the tax code. These are things that we provide and information we provide for our clients as they're navigating through these life experiences.

Speaker 1:

Also, tax investment advantages. In investment properties you have depreciation non-cash deduction that allows you right off the cost of the building over time, which reduces your taxable rental income. Also, your expense deductions your repairs, your maintenance, your management fees, your insurance, even travel to manage the property may be deductible. Also, mortgage interest deductions still applies for investment loans. And then passive income and long-term growth. Rental income is taxed differently from wages and can be offset by property expenses. There's so many advantages. And then also the 1031 exchange the section of the IRS code allows allowing you to sell one investment property and buy another like-kind property without paying capital gain tax immediately.

Speaker 1:

There's some key rules it must be an investment property. It can't work on your primary residence. However, if you move out of your primary residence, you've lived in the. This is amazing. You can stack tax codes and, of course, talk to your tax advisor. You can stack tax codes. You can live in a primary home two out of a five-year period. And then if you rented out the property for two out of that five-year period, not only can you exclude, you can do the $250,000 per individual on the primary home you then could actually do once the property has been a rental property for two years. You can the remaining portion of the property equity. You can actually do a 1031 exchange. Again, these are things most people aren't aware of or talk about. You can actually replace the property If you can. You can invest in another property by and defer the capital gains. You can roll your gains into bigger and better investments without losing a chunk to taxes. So real estate isn't just about owning property. It's about building wealth strategically and using the tax code to your advantage. So whether you're in your first home, building an investment portfolio or considering a 1031 exchange, the right plan can save you thousands. And if you have questions or want to explore how this could work for you, please give us a call.

Speaker 1:

At the Georgia Real Estate Group. Visit us online realestatebygregcom. Find us online. You can also call us at 828-393-0134. We also are on social media Facebook and Instagram or just stop by our office in Flat Rock. We serve all of Western North Carolina and the upstate as well. Rock, we serve all of Western North Carolina and the upstate as well. So we are meeting every single day. We have clients that are working and selling their personal home. We have clients that are selling their investment portfolios. We work with estate planning attorneys, we work with tax strategists. We work with so many different. There's so many. We're not just one piece of the puzzle. We bring together a team and help our clients navigate through how real estate impacts their life, whether it's their personal home, whether it's their investment properties, whether it's thinking ahead with their estate and the legacy they want to leave, and being strategic with it.

Speaker 1:

And again, just selling or helping buy properties is just one piece of the puzzle. It's looking at it from a consultant standpoint in a much bigger picture. We'd love to have the conversation with you about that. Find us online at realestatebygregcom. Follow us on social media. You can follow us also. You can see our blogs on georgerilestategroupradiocom.

Speaker 1:

You know there's a lot of people talking about waiting about the market in regards to the mortgage rates. The mortgage rates are a big topic right now and after the most recent jobs report came out weaker than expected, the bond market actually reacted instantly and, as a result, the early August mortgage rates dropped to their lowest point so far this year. Mortgage rates dropped to their lowest point so far this year and, while that may not sound like a big deal, pretty much every buyer has been waiting for rates to fall, and even a seemingly small drop like this ignites and reignites the hope that we're finally going to see rates 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 project they'll stay somewhere in the mid to low 6% range through 2026. So, in other words, no big changes are expected. This is on our most recent blog. You can find this on georgioroestategroupradiocom. But small shifts like the one we saw this month of July are still likely, and so every time there's changing economic news, there's a chance mortgage rates will react. But should you just be you should. Here's the thing, though the change, the challenge with that is waiting for the rates to drop, because, again, they're always fluctuating but finding out what you qualify for today, and you can always. If rates have a massive drop, you can refinance later, but qualifying for what you can afford today.

Speaker 1:

As I mentioned earlier in the show, sellers are more negotiable than they've ever been before. In the month of July, the average sales price to list price ratio was at 93%. That's significant. That was actually a three and a half percent drop. It was actually 93.4% of original list price received to what it sold for. That's significant, and so if you can, as a buyer, qualify in today's interest rates, you're going to get a good deal.

Speaker 1:

So the thing is, the magic number most buyers seem to be watching for is 6%. It's not just a psychological benchmark, it has real impact. A recent report from the National Association of Realtors says if rates reach 6%, 5.5 million more households could afford the median home price, roughly 550,000 people would buy a home within the next 12 to 18 months. That's a lot of pent-up demand just waiting for the green light. And so if you look back at the graph that we have on our blog again, fannie Mae thinks we'll hit that threshold next year, and so it raises an important question does it really make sense to wait?

Speaker 1:

But the trade-off is this if you wait for the 6%, to wait. But the trade-off is this If you wait for the 6%, you need to realize a lot of other people are too. So when rates continue to inch down and more buyers jump into the market, you're going to have the competition again. Right now you have a lot of choices. Right now you have sellers coming off their price. Prices are probably going to go up if we see increased demand. So the.

Speaker 1:

National Association of Realtors said this homebuyers wishing for the lower mortgage interest rates may eventually get their wish, but for now they'll have to decide whether it's better to wait or jump into the market. So the unique window that exists right now. Inventory is up, which means more 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 a little bit. They've softened. You certainly see all the price reductions and then the sellers are coming off their price more, so there's more realistic pricing and then again, more room for negotiations. You could get a better deal. So all these opportunities could go away when rates fall and then the demand surges, and so the NAR says this buyers who are holding out for a lower mortgage rate be missing out on a key opportunity in the market. So rates aren't expected, are not expected to hit 6% this year, but when they do, you're going to deal with more competition as buyers jump back in. So right now, as a buyer, you have less pressure, more negotiating power, and that opportunity is actually here right now. So we don't know how long you'll last, and it certainly depends on what happens in the economy. So give us a call 828-393-0134, 828-393-0134. You can find us online at realestatebygregcom. We'd love to have the conversation.

Speaker 1:

I heard a quote in regards to. I love this quote actually to. I love this quote actually. You know the the for most people in regards to work and versus play. This, this idea that what seems like work for others is play for me. And this was a con.

Speaker 1:

This is a quote by Naval and essentially it's it's about aligning your life and career so closely with your natural interests, your talents and curiosities that what drains most people actually energizes you. So for a lot of people, work is an obligation that if they stop doing it, they suddenly became financially free. For Naval, the goal is to find an arena where the opposite is true, where you'd keep doing the activity 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 at anything, but when you look at your life and your career and what your work is doing, it's about the skill and passion alignment. The skill is you're naturally good at it or the learning curve feels easy. The passion could be you enjoy it so much that it doesn't feel like a chore, and so when you align those, your output of effort skyrockets because you're running on intrinsic motivation, not willpower. So you have an energy advantage. There's compounding effects and you, you have an energy advantage, there's compounding effects and you can have an unfair advantage. You know you're competing against people who burn out faster in the same area. So it could be an investor who enjoys reading market reports the way others read novels. It could be a real estate agent who genuinely loves touring homes and meeting people. For them, the grind of the cold calls feels like a social event. So finding your play in your work and Naval, he's the founder of Angel, the Angel List and an investment. He's a billionaire. He says this.

Speaker 1:

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 you actually want. And then look for natural pulls. Hobbies you'd pay to do are often things you could build into a career. It doesn't mean avoiding all hard work Again. Hard work might come easier for you, but it means choosing a direction where even the hard parts are tolerable, because the game itself isn't worth playing Again. So also this might come into play with planning ahead for your estate.

Speaker 1:

For a lot of people, estate planning can feel like a headache the paperwork, the property values, tax implication, figuring out who gets what. It can be overwhelming. But for us, this is where we come alive. We love helping through it, sorting through it, combining the legal advice of your estate attorney, combining it with our tax advisors and the real estate. We love putting a plan in place at the George Real Estate Group. And so what might feel like a mountain for you is actually a challenge we can't wait to tackle, and we've worked with families who've waited until the last minute. We've seen how stressful that can be. We've also seen the relief in clients' eyes when everything is in order, the home's properly titled, the real estate is correctly valued, we have a plan in place when you're passing it along to your loved ones, to your next generation. That's why planning ahead and again it's the combination of your tax advisor, your estate attorney and your real estate professional Planning ahead isn't just smart, it's actually a gift to your loved ones.

Speaker 1:

And so, in regards to your real estate, do we sell the property before your estate receives it or do you keep it in the family? How will it be divided fairly? What's the current market value? What are tax strategies that could help your heirs save money? So when we work through these questions now and again as a team, getting these answers now means your wishes are honored later without unnecessary stress or conflict. So if real estate and estate planning and investment management feels like work for you 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 tax strategists. We'll make sure your real estate fits perfectly into your plan.

Speaker 1:

In the George Real Estate Group, we are helping our clients plan ahead today so your family's taken care of tomorrow. We'd love to connect. Call us directly at 828-393-0134. 828-393-0134. We'd love to connect. We'd love to have the conversation. This is, like I said, play for us. We're a lot of people. It's work. We are so passionate and enthusiastic about helping our clients navigate through all of this. And it's not just the buying and selling of real estate. It's the bigger plan, it's the bigger picture. We're here tomorrow morning, every Friday morning at 845, sponsoring the Hometown Hero Series. We've been doing that for a number of years. We're here every Thursday morning at 10 am. However, we can help. We're so enthusiastic about it and we'd love to have the conversation. Give us a call 828-393-0134. Find us online at realestatebygregcom. Connect with us, stop by our office. We just love having the conversation. We love playing in the real estate world. And it's not play, I mean, it just comes naturally for us. Have a great day, have a great week. We'll see you tomorrow morning.

Speaker 1:

Maybe the house feels a little too big these days, the stairs a little steeper, the pace of life a little too fast. But what if your next move wasn't about letting go. It was about making space For peace, for freedom, for what matters most? At the George Real Estate Group, we understand that real estate isn't just about the house. It's about transitions, timing and trust. We've helped thousands of families in Western North Carolina make smart, thoughtful moves closer to nature, closer to family, closer to home. So when you're ready to right size, simplify or start fresh, we'll be here. The George Real Estate Group Local, trusted, proven. Call us today 828-393-0134. Find us online at realestatebygregcom, because your next chapter deserves to feel just right.

Speaker 2:

Thank you for listening to the George Real Estate Group podcast. Tune in next time for more industry news updates and real estate tips. You can reach Greg, the George Real Estate Group, at 828-393-0134 or at realestatebygregcom.