Acquisition creates global residential real estate and employee relocation services leader

(Southern Pines, NC) December 7, 2011 – Brookfield Residential Property Services (“Brookfield”), a Brookfield Asset Management Inc. affiliate, announced that it has purchased Prudential Real Estate and Relocation Services (“PRERS”), a recognized leader in employee relocation and real estate franchising from Prudential Financial, Inc. Prudential Relocation Services operates as Pricoa Relocation in Asia and Europe.

William P. Saunders, Jr., owner of Prudential Gouger O’Neal & Saunders Real Estate said, “I am pleased with this announcement and the combination of the two forward thinking real estate groups.” He continued saying, “Prudential Real Estate has given us the opportunity to reach out to the nation for our clients, now we have been given an even larger world-wide audience.” 

Kay Beran, president of Prudential Gouger O’Neal & Saunders Real Estate, stated that she is looking forward to working with a larger network for relocation and referrals. “It will be business as usual but on a larger scale.  We are excited by the opportunities this merger brings to the table.” 

The addition of PRERS to Brookfield’s existing residential real estate franchising and employee relocation services businesses establishes Brookfield as the world’s second largest employee relocation services provider and the third largest residential real estate franchising business.

Under a licensing agreement, Prudential Real Estate brokerage affiliates will be able to continue to use the Prudential brand based on the terms of their franchise agreements.

“This transaction creates a global employee relocation services and real estate franchising leader,” explained Graham Badun, CEO, Brookfield Residential Property Services. “We have now increased the breadth and depth of our service offering, keeping pace with the evolving needs of our clients around the world.”

 A North American & Global Leader

Through its various brands, Brookfield’s residential real estate franchisees are now present in all 50 U.S. states, 10 Canadian provinces, Mexico and Portugal, with a network of approximately 80,000 real estate agents, 2,800 real estate brokerage locations and more than $150 billion in annual residential real estate transactions.

U.S.‐based Brookfield Global Relocation Services moves nearly 85,000 families in and out of over 125 countries around the world each year. With the acquisition, more than one‐third of Fortune 100 companies are its clients. In addition, Brookfield is now the largest provider of relocation services to government, with long term relationships with the U.S. and Canadian governments.

The acquisition greatly strengthens Brookfield’s existing U.S. business and results in the expansion of its operations in nine countries, with a rapidly growing presence in China, Brazil and India.

“Today, Prudential’s Real Estate and Relocation Services businesses join a global company with a track record of over 100 years of success,” said Earl Lee, President of Prudential Real Estate and Relocation Services. “We’re excited to become part of a company that is focused on and deeply immersed in the real estate sector and is in the business for the long‐term.”

Earl Lee will continue to lead the U.S. real estate business, and Rick Schwartz, President, Brookfield Global Relocation Services, will assume responsibility for the combined global relocation services business.

Brookfield’s parent company, Brookfield Asset Management, is a global asset manager with approximately $150 billion in assets under management. Brookfield is co‐listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA.

 About Brookfield Residential Property Services

Brookfield Residential Property Services is a leading global provider of real estate and relocation services, analytics and knowledge. The company’s portfolio consists of leading brands, including Brookfield Global Relocation Services, the second largest provider of global relocation services, Prudential Real Estate and Relocation Services, Brookfield Real Estate Services, Royal LePage, Real Living, Via Capitale and Centract.  Through its real estate brands, it has nearly 80,000 real estate professionals in more than 2,800 locations, who transact over $150 billion annually. Its global footprint spans North America, the United Kingdom, France, China, Singapore, India, Brazil and Australia, and includes more than 2,500 employees worldwide. It is a division of Brookfield Asset Management, a global asset manager with approximately $150 billion of assets under management.

Prudential Gouger O’Neal & Saunders Real Estate has been affiliated with Prudential Real Estate since 1995 and has provided real estate services to the residents of Moore County for more than 40 years.

One important decision homebuyers face is whether to secure a 30-year, fixed-rate mortgage or go for a 15-year one, which carries a lower interest rate.

“All things equal, a 15-year mortgage allows you to pay off your mortgage twice as fast while saving a significant chunk of money on interest,” explains Mark Crosby, a mortgage expert in Wilmington, Del. Still, “I think the 30-year mortgage is a logical choice for most people because it has more advantages.”

For starters, mortgage payments are less expensive with a 30-year mortgage, enabling more consumers to qualify for home purchases. “With a 30-year mortgage you are almost always free to make additional principal payments necessary to pay off your loan [faster] without penalty,” Crosby says. “With the 15-year loan, you are committed to giving that extra money to your lender each month, whether you can really afford to at the time or not.”

Higher payments that come with a 15-year mortgage make little sense if they keep you from building savings or contributing to a 401(k) plan, IRA, and perhaps your kids’ college funds, adds Dan Green, a loan officer with Waterstone Mortgage in Laurel, Md. “You could be needlessly tying up too much of your money into your house.”  

Green said another reason people favor a 30-year fixed mortgage is the tax benefit that can be achieved. “This is because the amortization schedule of 30-year fixed is back-heavy, with early-term payments big on interest and light in principal,” he explains. “By contrast, the 15-year fixed is always light on interest which lowers its taxpayer benefits.”

While it’s true you gain more of a tax break from a 30-year loan, it shouldn’t be the main consideration when deciding on a term. The 30-year borrower pays less in yearly taxes because he or she pays significantly more in interest.

So it all comes down to choice and circumstances. Choose the 15-year loan if you have the financial wherewithal to assume the payments. Your interest savings will be substantial and you’ll own your home faster. Opt for the 30-year loan for lower payments and greater flexibility. You can always choose to pay more on your mortgage when the money is available.

Kay Beran can be reached at(910 692-2635.  Prudential Gouger O’Neal & Saunders Real Estate is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

For Immediate Release                                                                     10/20/2011

This report is the ultimate resource for buyers, investors, sellers and all those who like to keep abreast of the ever-changing Moore County Area market.  Comprised by Prudential Gouger O’Neal & Saunders Real Estate, this quarterly report details residential, land and all classes of properties with sales prices and trends in every part our sales area.   

Some highlights of the 3rd quarter report include:

• The current number of listings in all classes has decreased from 3,928 to 3,330     down 9% from the 3rd quarter of 2010.
• The current number of residential listings has decreased from 2,295 to 2069 down 10% from 3^rd quarter of 2010.
• The average sales price is now $246,732 for residential properties and $221,419 for all classes of properties which includes land, residential, commercial, and multi-family. This is almost identical to 2010.
• The number of days on the market is 184 for all properties vs 183 for this time last year – a very stable number by all standards.
• The units sold for 2010 in all classes are down 8% and residential sales are down 12%.

Although we still face economic challenges, record low mortgage rates and improved
affordability continue to drive the market in Moore County and surrounding area. Our mortgage rates are averaging 4 to 4.25% for the 30 year fixed.  Good credit is key to locking in an excellent rate.  See www.bankrate.com for current updates. The easiest way to find out about our market is by logging in to www.prudentialpinehurst.com.

The statistics on the reports are derived from the PSP MLS and are subject to verification.
 

For an in depth explanation of  this tax, use the link from www.factcheck.org.  The direct link to the answer is http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

Remember, the first $250,000 in profit from the sale of a personal residence won’t be taxed, or the first $500,000 in the case of a married couple. The tax falls on relatively few — those with high incomes from other sources. Check with your tax advisor to get the full picture of how your income relates to your real estate investments and don’t panic about this tax!

BRAC Report – See the latest article in The Pilot regarding the impact of the upcoming Base Reallignment.

Buyer or Seller Market: Buyer

Average Time on the Market: 180 plus days for Residential, higher for land and commercial.

See the Pending Trend Report

Market Trend: Buyer activity –  stable. No more tax but sellers are “pricing right”.  Note the return of Value Range Marketing by Prudential Gouger O’Neal & Saunders!  We have successfully used this for homes in our market.

Housing Inventory: Good Supply. Many price adjustments. Few new construction starts.

Average Sold Home Price in 2011: $225,448  through 1st quarter 2011.  $252,595 through first quarter 2010.

Best Selling Price Range: $100,000 – $300,000  – same for 2009 and 2010 and 2011

Sold Price as a % of Asking Price: 94%  in 2009 and 93.5% in 2010 and 92.42%  in 2011 for All categories of properties

National News:

Pending Home Sales Rise in March

Washington, DC, April 28, 2011

March saw another increase in pending home sales, with contract activity rising unevenly in six of the past nine months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said home sales activity has shown an uneven but notable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he said. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards.”

For more information – click here.

Mortgage Rate Information

 
Forecasters were predicting mortgage rates to hover in the 5-6 percent range in 2011.  What we actually see is a projection for continued low rates between 4 and 5%.  However reports throughout the nation indicate that appraisal process is making the processing of contracts for sale difficult – too few comparables to support the prices.

See the current rates from Wells Fargo Home Mortgage.

Produced in conjunction with the Pinehurst/Southern Pines Area Association Multiple Listing Service, our market reports are the benchmark for residential real estate market information and an essential reference source for our clients, financial institutions, and other market professionals. Each overview looks at trends, in which statistics are broken down by the average sales price and the number of sales for each month. Our goal is to give consumers an idea of immediate, historical and emerging market trends.

The Latest Market Reports:  

 See the 2010 Area Market Report – including Moore County and neighboring areas,

See the First Quarter 2011 Market Report

Pinehurst, NC— The majority of America’s potential homebuyers and sellers — 68 percent — believe that the real estate market and property values will recover in the next year or two, according to a new survey by Prudential Real Estate and Relocation Services, a Prudential Financial, Inc. [NYSE:PRU] company.  This exceeds the 47 percent of Americans who expected house prices would rise in a similar survey conducted in April 2010, underscoring a more bullish outlook for the real estate market today.  In addition, 86 percent of Americans believe real estate is a good investment despite the market volatility of the past few years. The Prudential Real Estate Outlook Survey of 1,253 Americans between the ages of 25-64 in the market for buying a home was conducted Jan. 20-27, 2011.

The national survey reveals that six in 10 respondents are more interested in buying real estate (58%) and are optimistic about buying given the momentum of the economic recovery (59%).  It also shows that although the price of many Americans’ homes declined during the recession, 89 percent recognize they can also buy a new house at a lower price. 

“This survey clearly demonstrates that Americans nationally and locally continue to be optimistic about the real estate market and believe that home prices will rise,” said Kay Beran, President of Prudential Gouger O’Neal & Saunders.  “A key take away from the survey is although consumers recognize that it is a good time to buy, they are concerned about their ability to sell their homes. This is one of the reasons for a slowdown in the Moore County recovery.”   

For those on the fence about buying, uncertainty about selling an existing home (77 percent), concern about getting a fair price for the home (67 percent) and emotions (58 percent) are holding them back.  For those who have sold homes in the past year, despite the down market 78 percent report that they were satisfied with the sale.  Of these, 32 percent were very satisfied with the final price of their home and 46 percent were grateful they were able to sell given market conditions.  A relatively small number, 22 percent, indicated that they were disappointed or resentful about the price they received for their home.

The survey highlighted Americans’ interest in trading up their homes.  Of the 45 percent looking to trade up, 64 percent wanted more space or property, 49 percent a nicer house and 41 percent a better neighborhood.  Only 21 percent surveyed said they were looking to scale down, and 34 percent said that they wanted a similar home.            

The survey highlighted the importance of getting the right price in today’s market —74 percent of buyers believe that many homes could meet their needs and that price is a significant differentiator, while 26 percent stated that they were willing to pay top of market for a home that specifically suits their needs.  In setting the right price, however, sellers were split—with 53 percent wanting to price right at or slightly below market to attract more bids and 47 percent wanting to price slightly higher than market and hoping to find a buyer willing to pay more.  

The majority of respondents underscored the importance of real estate agents in the process of buying or selling their home.  Seventy-five percent of those surveyed said that an agent is very important or essential to this process, with only 24 percent saying agents are helpful but not imperative. 

“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes; which is reflective of our market as well,” added Beran.  “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”   

The Prudential Real Estate Outlook Survey was conducted online. The margin of error is +/- 3 percent. A more detailed breakdown of the data is available, as well as supporting charts and visuals, at www.news.prudential.com.

Prudential Gouger O’Neal & Saunders is the oldest real estate firm in the greater Moore County area and became a Prudential Real Estate affiliate in November of 1995.  Gouger O’Neal & Saunders has been in the residential and commercial real estate business since 1971, and has been a leader in real estate sales ever since.   

Prudential Real Estate and Relocation Services is Prudential’s integrated real estate brokerage franchise and relocation services business. Prudential Real Estate franchises are independently owned and operated. Companies are selected based upon outstanding performance records, high levels of customer service and shared business values with those of Prudential. Prudential Real Estate is one of the largest real estate brokerage franchise networks in North America, with more than 1,600 franchise offices and 54,100 sales professionals in the franchise Network as of Dec. 31, 2010.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately

$784 billion of assets under management as of Dec. 31, 2010, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential’s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.news.prudential.com.

Short Sale Tips

Thinking of Making an Offer on a Short Sale? What You Need to Know

Are you looking to buy a new home? Are you thinking that now’s a great time to find bargains? That’s true, but it pays to know a little about the seller’s situation before you make an offer. 

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market. 

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase. 

You’re a good candidate for a short-sale purchase if: 

• You’re very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale. 
• Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure. 
• You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms. 

If you’re serious about purchasing a short-sale property, it’s important for you to have expert assistance. Here are some people you want to work with: 

• Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who’s knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation. 
• A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they’ve represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)  
• Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it’s much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few. 

Some of the other risks faced by buyers of short-sale properties include: 

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process. 
• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you. 
• No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits. 

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers. 

SEARCH FOR PROPERTIES

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.  

FROM:  Don Padgett II, President & COO Pinehurst Resort and Country Club 

I’m pleased to announce that today the Dedman family purchased a 220-acre site in Aberdeen, which you may know as The Pit Golf Links. The course has been closed for several months and was recently sold through foreclosure proceedings. 

As an organization we are thrilled that the family moved forward with this acquisition as it represents their continued commitment to Pinehurst and Moore County. As Bob told me last week, “This property truly complements our existing holdings in that area. Now we will have a beautiful and unique 925-acre site.”

Undoubtedly, you will be curious about what we intend to do with the property, but at this time we have no immediate plans. Over the next couple of weeks we will evaluate the golf course, clubhouse and other facilities to determine our next steps. Currently, our biggest priority is the reopening of No. 2, which I believe is the most important event in the last 10 years for Pinehurst, our guests, members and the entire community.

Homeowner Tax Credits

If you have made some energy efficient changes to your home in 2010, you may have an opportunity to get tax credits for the improvements!

The details: 

Windows, Doors, New Furnace or Air Conditioners that provide for more energy efficiency in your home may provide you with the eligibility for a tax credit for up to 30% of the cost, up to a maximum of $1,500.  A tax credit is a dollar for dollar reduction in your tax bill, making a credit more valuable than the deduction.

Keep in mind – the $1,500 is a lifetime maximum.  If you claimed the full credit on your 2009 tax return, you can’t claim it in 2010, even if you made more home improvements last year.

If you’re not sure whether your energy-efficient improvements qualify, be sure to check it out.  Most manufacturers will certify that their products meet the standards for the credit.  Check with your contractor – check with the IRS.   IMPORTANT - keep your tax records for verification in case the IRS questions your returns.

In all cases, check with your CPA and/or your trusted tax advisor for confirmation.