Luxury Real Estate Market Insights with Angie Cullen & Alec Cantley

https://www.youtube.com/watch?v=G1CrOFt3HcI

Timestamps

(00:00) Real Estate Networking and Transactions
(07:37) Real Estate Updates and Market Insights
(11:17) Real Estate Market Analysis and Trends
(22:19) Luxury Real Estate Tips and Definitions
(31:09) Real Estate Trends and Buyer Behavior
(38:47) Luxury Market Pricing and Cash Buyers
(49:18) Breaking Into Luxury Real Estate Market
(59:39) Selling Luxurious Homes and Hiring Professionals
(01:07:03) REMC.co

Key Takeaways

The average Buncombe County sale price was about $624,000 in October 2023, with a median near $490,000. Every price range except $2 million and up was still a seller's market.
Roughly 85% to 90% of Alec Cantley's luxury buyers came from out of state. Above $2 million, about half of what he sells is second homes.
Luxury deals in Western North Carolina are primarily cash, and Cantley said cash now turns up at every price point, including $400,000 to $500,000 deals he has lost to it.
In the $550,000 to $650,000 range, 45% of the homes under contract had taken a price cut, averaging almost $53,000. Half of the pending homes had gone under contract in 18 days or less. Pricing was the difference between the two groups.
Neither panelist planned to change how they work while the federal jury verdict against NAR, with almost $1.8 billion in damages, is under appeal. Angie Cullen noted North Carolina is one of only 13 states that already uses a buyer agency agreement.

Summary

What does it take to break into the luxury real estate market and navigate its unique challenges? Brace yourself for an enriching conversation that aims to equip you with the necessary tools and insights to flourish in this sector. We kick things off with a discussion on the importance of networking and its significant influence on your business growth. We also unveil a new feature that will help streamline transactions within our community.

Our podcast takes a deeper dive into the complexities of the current real estate market, with a special emphasis on luxury real estate. With a helping hand from Angie Cullen and Alec Cantley, we dissect what defines luxury in real estate and the amenities most sought after by opulent buyers. Together, we examine the Western North Carolina luxury real estate market, discussing the effects of climate concerns on property values, the influx of buyers from other states, and the value disconnect between sellers and buyers.

Finally, we turn the spotlight on Alec and Angie again, as they share their wisdom on infiltrating the luxury market. We delve into crucial topics such as the importance of a strong supportive network, the impact of recent legal rulings on commissions, and the prevalence of cash buyers in the market. Subsequently, we unpack the strategies involved in luxury property pricing and hear from Alec and Angie on how to successfully navigate this niche sector. We wrap things up with a focus on selling luxurious homes and the value of hiring professionals. Don't miss out on this treasure trove of information, tailor-made for anyone interested in the world of luxury real estate.

Questions About Luxury Real Estate in Asheville

How do you define luxury when the average sale price is around $624,000? Angie Cullen draws the line at the top 10% of the MLS, which is a moving target rather than a fixed number. Alec Cantley treats luxury as an experience instead of a price point. He has sold small bungalows, masterfully renovated, that felt luxurious, and he could take you to a $2 million beat up farm that does not. Nest Realty, where Cullen is the owner, meets every client with the same level of care regardless of price.
Which amenities do luxury buyers in Western North Carolina actually want? Cullen said buyers here want privacy, quiet, curated outdoor spaces, and above all the view, which can appraise for hundreds of thousands of dollars on its own. Cantley starts from the client's lifestyle: wellness rooms and home gyms have become common requests, second home buyers keep asking for pools, and high end buyers expect smart home technology and fine finishes. The features they both called underrated are storage, a butler's pantry, and stonework, retaining walls, and outdoor fireplaces that can easily run $500,000.
Are luxury buyers hesitating, or is the ceiling still far off? Cantley is bullish on Western North Carolina. His feeder markets have shifted from South Florida to Texas, California, and Hawaii, and in one week he had two client conversations about whether their Florida and Louisiana properties will stay insurable. Cullen made the historical version of the same argument: the region has been a luxury retreat since the Vanderbilts, and the places that used to compete for those buyers can no longer offer what they did.
How much of luxury pricing is art and how much is science? Cantley called himself a gut feel guy who uses data for general direction, because a true unicorn property has no comp and the work is talking the seller through what buyers will and will not like. Cullen leans more statistical. She asks a builder she has a relationship with what it would cost to rebuild the house today at a price per square foot, values the land separately, and checks the Ruiz Report data on how many homes sold in each price range before setting the number.
What should a new agent do to break into the luxury market? Cantley started as an administrative assistant and spent two and a half years learning the business from one of the top brokers in town. His advice is to surround yourself with successful agents, walk broker opens to learn inventory whether you have buyers or not, and commit. The $400,000 client from 12 years ago is now a $1.4 million client. Cullen added: present yourself as a luxury expert before you sell any, and build the vendor list, because you should know without hesitating who in town can fix a slate roof.