The Free CRE Tool You’re Probably Ignoring (and Why It’s Costing You Deals)

Aviva Sonenreich (00:00)
This week's listener of the week is Derek Sells the Bay. Derek, thank you so much for leaving us a five star review. And for those of you listening, if you leave us a five star review below, you might be next week's listener of the week. Week, week. This week on commercial real estate secrets, I had so much fun talking to James Milner.

the president and owner of Appalachian Commercial Real Estate out of Boone, North Carolina that he's back. James, thank you for being on the show today.

James Milner, CCIM (00:37)
Always a pleasure.

Aviva Sonenreich (00:39)
So James, for the listeners, who are you? I know, they know you obviously intimately, but a quick reminder would be great.

James Milner, CCIM (00:50)
Quick reminder is James Milner president and owner of Appalachian Commercial Real Estate based in Boone, North Carolina, which is a small town in Northwest North Carolina. And our firm does commercial real estate sales, leasing, consulting, and appraisal services.

Aviva Sonenreich (01:10)
Great to have you on the show today again. Okay, so the reason why we're here is because you used a trigger word. And there have been frustrations in the commercial real estate industry because our software is so expensive, right? You could easily spend 10 grand, 12 grand for a couple of costar licenses. And you talked about pulling data

James Milner, CCIM (01:14)
pleasure.

Aviva Sonenreich (01:40)
or using the county assessor as a advantage strategy, et cetera. The county assessor is free information. Correct me if I'm wrong. How are you using free information provided by the cities and counties to your advantage in your commercial real estate in 2025?

James Milner, CCIM (01:42)
Yes.

I think the most important thing for our industry is information and that that data is your data, not anyone else's, and you're going to use it to your competitive advantage. So one of the ways that we use data at our firm is the register of deeds or the county assessor. If we hear about a sale, not all sales go through

one of the CIEs that you mentioned. And so if we hear that something happened, then we're quick to verify that information and can go through either the tax assessor or the registrar deeds to make sure that it happened. In North Carolina, we are a disclosure state. So we have this thing called excise stamps. And so it's $2 per thousand.

And so we get to calculate the sales price of a property in some states and counties that's not, they're non-disclosure states. So we're very lucky in North Carolina to be able to get that information.

Aviva Sonenreich (03:06)
Hmm, it's so interesting. once you extract the information, then what do you do with it? How do you organize it and then ultimately use it for your clients advantages?

James Milner, CCIM (03:21)
As one of our business lines is appraisal, we have invested in a very cool piece of software. So I'm going to give them a shout out. Company called Valcre. They're from California and Valcre allows us to house all this information. So whether it's a property and then once you have the property set up, you can enter it.

a lot of different data points. For example, if it's sold, if there's a lease connected with it, if you have the expense, right, if it has an NOI and a cap rate and all those types of metrics. So we house all of that data there and it's one central cloud-based system. How do we use it? We use it to our advantage to properly

price property, either for sale or for lease, based on what is happening in the market. Now, I don't know what's happening in your neck of the woods, but in mine, the bid ask gap is crazy, right? You're using transactional information from the past to try and predict the future. so a sales price is getting set based on old information and the market is moving at a totally different pace.

and buyers think that they should be entitled to a good deal and sellers still think that they have the Taj Mahal. And so putting the deal together is difficult now more than ever.

Aviva Sonenreich (04:59)
That sounds familiar. Sounds like a conversation I had earlier this morning. So, what percentage do you feel like is the bid ask gap?

James Milner, CCIM (05:00)
Mm.

so if we're doing a broker opinion of value, right. And we're trying to price a piece of property for a seller. even though we have market data to support a certain number, in my opinion, this just mine. So don't come running after me with a chainsaw. I think there's at least another 25 to 30 % to

cut off that number and then take it to market and then let the buyer pool respond.

Aviva Sonenreich (05:50)
You know, it's funny is that conversation I was having earlier today about prices, you know, why is my appraisal useless or Why is this appraisal so high in your broker opinion of value so low? And I said, well, prices have retreated 25 to 30%, which is interesting because it sounds like we're both feeling that in different markets, but.

James Milner, CCIM (06:01)
Hmm.

Aviva Sonenreich (06:16)
We are feeling it.

James Milner, CCIM (06:17)
Well, and just the fact is, that transactional velocity is slowing down. The access to capital for the buyers is hard. We need our buddy, Jerome. Please, Jerome, if you're listening to this podcast, please give me a rate cut in September. Please. It will help the American people borrow money again and go buy commercial real estate. Go buy in a beautiful industrial building out in Denver.

but the transactions are slowing down is the most important thing for listeners to understand in that, they're, while there are plenty of sellers, think they're fewer buyers and they don't only want a good deal. They want a great deal.

Aviva Sonenreich (07:06)
Can you blame them?

James Milner, CCIM (07:07)
No.

Aviva Sonenreich (07:08)
Okay, so if I'm a seller and I have an appraisal from 2022 or 2024, can you explain to me in layman's terms why it's not applicable in 2025?

James Milner, CCIM (07:23)
because that appraisal looked at past transactions and the most important part of an appraisal is what is called an effective date. It's only good as of the date it was written. The market can change by the day, the hour, the minute. So, you know, it is not important to rely, while historical data is important,

It gives us an indication. There is a difference between that appraisers opinion of market value and price. And price is what someone is willing to pay you. Value is what someone thinks it's worth.

Aviva Sonenreich (08:10)
James and I are being kitschy because this is the struggle that every broker is dealing with today, which is July 29th, 2025. Now, I wanna go back. There's an element of our job where we hop on the county assessor. It's funny because...

Nobody really goes on the assessor's office, but there's actually, I mean, it's a website for the people and everybody should be familiar with it. What are other ways you use the county assessor website for your commercial real estate or your client's advantage?

James Milner, CCIM (08:36)
Mm.

Yeah, I mean, if we're trying to do assemblage deals, or if we're just representing a buyer or seller really, but we use the GIS data to our advantage because we want to know who your potential neighbors are or are going to be. Is there another opportunity either for a transaction to occur or if you're trying to put together a

number of different properties, right, in assemblage, then having that GIS data is important. We also use it as a form of due diligence, right? So that GIS data can tell us a lot. It can tell us ⁓ FEMA flood hazard areas. It can tell us topography. It can tell us zoning, right? So a lot of the basic information

is there that we need to do as a brokerage to familiarize ourselves with the property.

Aviva Sonenreich (09:49)
Do you spend any time in the foreclosure section? No.

James Milner, CCIM (09:54)
No,

but my best friend is the clerk of superior court for our county. trust me, there's a foreclosure worth knowing about, can usually get a call in quick order. you know, the foreclosures are, I don't know what's happening in your market, but in North Carolina, there are certain markets where foreclosures are starting to tick up and that's not good for.

Aviva Sonenreich (10:09)
Damn.

James Milner, CCIM (10:23)
the economy overall.

Aviva Sonenreich (10:27)
Well.

I can't disagree with you there. So for the rest of the 2025 outlook, what do you think? Is it better or worse than Q1 and Q2 of 25 for transaction volume?

James Milner, CCIM (10:43)
My personal opinion is that the remainder of the year is probably going to be stable and soft. I think that we are in an access to capital crisis. We need to get people borrowing money again. And we need deals to start penciling and making sense. Because right now they're not making a whole lot of sense. Therefore, they're

very few buyers out there. And we just need a little bit more equilibrium in supply and demand. What about you? What's your 2025 take for the remainder of the year?

Aviva Sonenreich (11:24)
I think you used a great word and it's soft. I think that it's all gonna be okay, but I think there's a lot of opportunity now and coming if you're a buyer. And.

A crucial problem with buying real estate is, good friend of mine always said, if you spend too much money per square foot initially, like it's never gonna work, right? So it's exactly what you're saying. Seller's pricing expectations are...

unrealistic with what the buyers are willing to pay right now. Like, and I don't fault them for it. They have been bludgeoned by brokers day after day after day after day for years telling them their property was worth, you know, 30 % less what the market will yield today. So I don't blame the sellers. So it's soft.

James Milner, CCIM (12:11)
the end of the day,

I think that it's important for sellers to understand that they have, if they have an opportunity to get out and they want to get out, they may very well have a very strong and stable asset and selling is just not in their, bailiwick. They're just not interested. But if you feel like you need to sell now might be a good time.

Aviva Sonenreich (12:24)
Mm-hmm.

James Milner, CCIM (12:40)
because as we continue down the path of pain, it can only get worse.

Aviva Sonenreich (12:48)
And if you do find yourself having to sell, definitely call James or myself.

James Milner, CCIM (12:53)
Yes.

A broker is your advocate, is your friend, and is your trusted knowledge resource center.

Aviva Sonenreich (13:01)
Yeah, I mean, we only save you hundreds of thousands of dollars if you listen to us at the very minimum.

James Milner, CCIM (13:07)
Listening is the most important part.

Aviva Sonenreich (13:11)
I, so my husband is a broker with me now and he used a phrase that I say to people, which is, this is what I do for a living. I literally lease and sell warehouses for a living, right? Like, please listen to me. Anyway.

James Milner, CCIM (13:31)
I tell people Aviva that you're either smart enough to call me or dumb enough not to. And that's a bold statement, but listen, we are experts in our field. And if you feel like you can go on it on your own, by all means, I wish you all the best. But if you want some advice and good counsel, then let us be part of your team to help you.

Aviva Sonenreich (13:37)
No.

James Milner, CCIM (14:02)
make the best decisions possible.

Aviva Sonenreich (14:04)
Most people get it.

James Milner, CCIM (14:08)
Some people don't.

Aviva Sonenreich (14:11)
Are you going to CREi this year?

James Milner, CCIM (14:14)
I have not yet pulled the trigger. It is trending in a positive direction rather than the negative, but I have not officially pulled the trigger. I have a big trip at the end of September, beginning of October to Vancouver for CCIM. And as you know, as a family person now, I am just trying to juggle.

Aviva Sonenreich (14:18)
Okay. Mm-hmm. Mm-hmm.

Mm.

James Milner, CCIM (14:42)
all

responsibilities. know, there's an adage we have here, even in the sticks, happy, happy wife, happy life. And I'm trying to try my best.

Aviva Sonenreich (14:52)
You are doing, you're doing a great job. I'm kidding, no kidding. No, you do it effortlessly. Okay, James, before I have you tell another commercial real estate secret as the last question, context, James and I met at a conference where we talk about commercial real estate.

present online. Have you found anything in the last six months to be particularly working well, poorly, or any of the like?

James Milner, CCIM (15:25)
I'm not listening to the noise of people trying to tell me that TikTok is not relevant. I love TikTok. I'm gonna keep making TikToks. I got that courage from you. I'm not good at the consistency part, but I've gotten over that hump of being willing to try putting a TikTok together.

You know, am I getting blown up on TikTok with followers and views? No. Do I really care? No. but I, I like TikTok and I'm going to keep doing my TikTok thing and, yeah, but all social media is important and, know, we talk about digital presence and it's, it's really, really important. The other big thing that I would tell you is,

I think I found the platform that I am most successful on, even though it is not my platform of choice. So if we look at all these metrics, right, of engagement or followers or whatnot, I find a lot of success on LinkedIn. And our good friend, Fly Jamerson, has encouraged me to write more.

on LinkedIn. don't really, she said to me the other day, she said, I really don't care what you say, just say something because you're an important voice. I said, hmm, that means a lot, fly.

Aviva Sonenreich (17:03)
She's right. You are. So, all right.

James Milner, CCIM (17:04)
Well, so what about

you? Are you ⁓ still TikTok mad? I saw this IG the other day from you. I can't remember if it was a story or a real, but you said, hey folks, I'm ready to get back in the game. I'm going to do my part. I'm going be more intentional. I said, that's my girl. Way to go.

Aviva Sonenreich (17:25)
you

James Milner, CCIM (17:35)
You do it.

Aviva Sonenreich (17:35)
You know, yeah,

I mean, it's like you said, having kids is a crazy element of this where like, I don't want to be on my phone with my child and I want to spend my child's childhood with them while still have work being a individual. So how do I do that? When I'm with the kid, the phone goes away. So creativity, I,

You know, I lost my groove with a little bit of the creativity there. I did the podcast as a way to always have content. You know, we use a strategy with the podcast to create social media clips for all the platforms.

James Milner, CCIM (18:13)
point of your story or real the other day is that, who was it? Your husband, right? Said, all you do is take clips of your podcast segments and repurpose it for your platforms. And you were like, I'm gonna do better.

Aviva Sonenreich (18:31)
Hey, no, you know, just just want to always be the best version of myself and bring the best content I can. Because the more you give, the more you get, to be entirely honest with you. So. I know it's a beautiful thing. I believe we're going to have some really good social media clips from this pod. James.

James Milner, CCIM (18:42)
Amen to that.

Amen.

Much, much better than the first go-around, I'll tell you that.

Aviva Sonenreich (18:59)
Hey, ⁓ this is fun. We'll have to do like quarterly. Okay.

James Milner, CCIM (19:03)
Yeah, anytime, whenever

you need me, I'm here for you.

Aviva Sonenreich (19:09)
Yeah. Yeah. Yeah. No, no, I'm just kidding. Okay. What's your please? Yes.

James Milner, CCIM (19:14)
Hey, let me, can I ask you one more question? If

I, ⁓ may happen before the end of the year, but if I started podcasts, will you, will you play roles reverse with me? Okay. I'll keep you posted.

Aviva Sonenreich (19:28)
I would love that.

⁓ You can call it in the boon.

James Milner, CCIM (19:35)
I actually have a name for it, it's called Boon T.

Aviva Sonenreich (19:38)
Okay, I'm just glad you used the word boon in it. It's too good. Love it. All right, James, for the listeners, what is your latest commercial real estate secret?

James Milner, CCIM (19:45)
Alright.

I think that follow up is really important and what we don't do a good job of as brokers is maintaining our client relationships. And so I want to challenge our brokers this week to think about transactions that have had a high impact on your life. doesn't necessarily have to be monetarily connected. Just could have been an awesome transaction. And I want you to

do something to cultivate that relationship. You don't have to give them a piece of market data. You don't have to send them a listing, but what you do need to do is pick up the phone, give them a call, ⁓ and just say hello and check in on them. And I think it'll go a really, really far way.

Aviva Sonenreich (20:42)
that. James, thank you for being on the show today. And for everybody listening. wait, James, where can the listeners find you follow you contact you hire you to sell their building.

James Milner, CCIM (20:47)
As always.

Everything with the company is Appalachian CRE. But if you need to find me, ⁓ the easiest way is our website, which is Appalachian, A-P-P-A-L-A-C-H-I-A-N-C-R-E.com. And all our contact information is there. And if you want to see the wild and crazy world of James Milner on TikTok, is boon. ⁓

C-R-E. That's my Twitter handle as well.

Aviva Sonenreich (21:32)
Thank you for everybody listening. We'll see you next week.