104 – Harry Carver from Bluegrass Realty and Investments -

Harry Carver from Bluegrass Realty and Investments moved to Frankfort over 20 years ago for a short-term job, and the rest is history.

Harry is an agent and appraiser at Bluegrass Realty and Investments.
Frankfort resident for 27 years
Been in real estate for the last 9 years, but had a real estate license in the early 2000s before going into state government.
Renewed license after leaving the state government and decided also to get his appraiser’s license.
Currently, he does real estate sales and residential appraisals.
As a real estate agent and appraiser with Bluegrass Realty and Investments, he is self-employed.
Joe Johnson, the broker at Bluegrass Realty, is Harry’s brother-in-law.
Bluegrass Realty is a small local firm.
Starter homes turn over more than larger homes.
In years past, there would be a turnover in houses with the changing state government administrations, but this is no longer the case.
One of the most significant changes in real estate has been the recent court decision regarding real estate agents being able to advertise what they were paying the buyer’s agent (i.e., the commission to the buyer’s agent). This was a state case in another state but had a national impact and resulted in a settlement with the National Association of Realtors. Now, it must be negotiated; it cannot be stated upfront.
Over the years, some of the changes in the market Harry has seen include a few years ago when there were low interest rates and limited inventory in which a house would only be on the market a day before it was sold, with multiple offers, to today with a ton of inventory and houses being on the market longer. Currently, there are about 100 houses on the market in Frankfort.
A few years ago, a starter home was $100,000 to $125,000 and now it’s more like $200,000.
Not a lot of new construction now either. There were several subdivisions planned and approved prior to the housing bust of 2008 but those areas sat vacant. Now there aren’t a lot of approved subdivisions out there so not a lot of construction, not nearly what is needed to keep up with the demand.
Harry has been involved in the community, particularly with Downtown Frankfort.
During his time with state government as a non-merit employee he was a volunteer with Downtown Frankfort and ended up being the director for several years. Since leaving that position, he has continued to be a volunteer.
Downtown is the heart of a community. If you don’t have a vibrant downtown, people spending time together there and doing things downtown, then a community lacks viability. Big companies don’t decide to locate in a town because they have a Wal-Mart on the interstate but because they have a vibrant downtown.
He lives downtown and sees more tourists coming through town and in the coffee shops, etc. As a result of the bourbon tourism, the two new hotels and the plans to redo the Capital Plaza, there are more opportunities for downtown businesses. The retail part of downtown has come and gone but in the last two or three years it is bouncing back.
More people want to live downtown but there are also people interested in buying properties for short term rentals which is creating some angst because with the housing shorting there is competition for properties from people who aren’t going to live in the house. The city took steps to rectify this by limiting in those neighborhoods the number of short-term rentals that each neighborhood could have.
It’s a unique perspective between being a state government employee and working for yourself. There are no guarantees when you are an entrepreneur.
If he were advising someone who wants to be an entrepreneur, one of the issues to consider is affordable health insurance. a lot of people can do it only because they have a spouse who has health insurance through their employer.
Because of the state government, many people in Frankfort can retire at a fairly young age and start a new career. For them, the issue of health insurance is removed because they continue to have coverage as a state government retiree.
· Real estate marketing has traditionally used the yard for sale signs. With the internet, you get more exposure, and it is easier to go online instead of looking through the hard copy MLS book. Also, buyers can search for homes themselves online. By the time they call an agent, they have already narrowed down their search.
He hasn’t used social media much in his business since he’s nearing the end of his career but his daughter-in-law who is a real estate agent in Nashville uses it all the time. Younger people just starting in the business must use it to be successful.
He acknowledged that he’s not a natural salesperson having had jobs when he was younger that required cold calling which is why he likes real estate because he doesn’t feel like he is trying to sell someone on buying something. He is helping them through the process of finding a home.
As an appraiser, it’s quite different. Looking at the comps and evaluating the property to have a better understanding of how a property is valued.
If somebody were looking for a property for an Airbnb, Frankfort is a perfect match for affordability and demand because of tourism.
There are companies that will manage an Airbnb for you so all you do is invest in the property.
Most of the Airbnb’s are concentrated in two neighborhoods in the city. To have an Airbnb in one of these two neighborhoods in the city, you have to get a permit from the Architectural Review Board. In the county, you can have a short-term rental in a residential neighborhood with a conditional use permit if you meet all the criteria and obtain the permit by going before the Board of Zoning Adjustment.
Some people still buy properties to flip, but it depends on the cost of improvements and the cost of materials, which are increasing. We are seeing that also now because of the flood this spring requiring people to buy materials and contractors who are so busy with work on other projects.
Harry chairs the Franklin County Community Fund which is an endowment that they have been working on for about ten years. As a community fund with the endowment, they can only use the money off the principal. It is a permanent endowment to make grants with. After the flood, they created a flood relief fund aside from the endowment so people can give directly so it is “money in, money out” to help people that were impacted by the flood.
It’s overwhelming because it’s not an overnight thing to fix. There are many phases and many needs. The community has come together to help each other.
If somebody was thinking about getting into real estate, they need to know it’s a lot of work to build your business to get to a point where you can survive from one commission check to the next.