Sotheby's Concierge Auctions | Agent Guide

AGENT GUIDE: LUXURY PROPERTY AUCTIONS

LESSON 01: Auction Basics

Agents earn their commission in 60 days. Sellers gain unmatched reach, speed, and certainty. Buyers get incredible deals. This is core to the Sotheby's Concierge Auctions model.

Our origin story began when CEO Laura Brady met President Chad Roffers back in 2004. Building on Chad’s experience in Silicon Valley and Laura’s time in corporate retail at Neiman Marcus, as top-producing luxury real estate agent and broker, they came together to create a more efficient method for buying and selling the world’s finest homes.

We have maintained a commitment to the agent community since day one. Agents receive their full commission and we have never closed a deal without a listing agent. We support agents with:

Ҵ An additional tool for high-end listings

Ҵ Listing and buyer agent commissions

Ҵ Co-branded, award-winning marketing at no cost

Ҵ A 60-day, contingency-free accelerated sale

Ҵ Trusted relationships with high-net-worth buyers

Ҵ A global database of 850,000 people including buyers, agents, and industry experts

Ҵ Sotheby's International Realty listings receive exposure to Sotheby’s 670,000± daily subscribers

Ҵ Dedicated support

Ҵ Referral opportunities

ASPEN, COLORADO

Sold for $14.28M

PROSPECTS

1,206

SHOWINGS

28 BIDDERS 5

In cooperation with Craig Morris & Andrew Ernemann of Aspen Snowmass Sotheby's International Realty

"Sotheby's Concierge Auctions did exactly what they were hired to do, and the process worked...We had great showing activity, generating substantial interest from potential bidders and numerous registered bidders with the firm’s marketing platform and open house schedule. I will unequivocally recommend Sotheby's Concierge Auctions in the future, and I look forward to working with them again."

— Craig Morris, Listing Agent

Q&A

Q: Is there always a listing agent representing an auction property?

A: Yes. Sotheby's Concierge Auctions has never auctioned a property without a listing agent.

Q: Does your seller pay engagement fees or marketing costs?

A: No, we do not charge any seller fees. Sotheby's Concierge Auctions fronts all marketing costs, and is paid by way of a 12% buyer’s premium paid by the winning bidder once the auction closes.

NEXT LESSON

In 15 years, Sotheby's Concierge Auctions has closed over $3B in luxury property sales at auction with activity in 46 U.S. states and 36 countries/territories. These sales have resulted in over $60M in agent commissions.

Lesson 02 will explore the commission structure and how to use auctions as a tool for quickly selling properties for market price.

Visit: ConciergeAuctionsReferral.com

Email: referrals@conciergeauctions.com Call: +1 212.390.8144 | +44 203.327.2751

HILLSBORO BEACH, FLORIDA

Sold, Listed for $159M

SHOWINGS

29

BIDDERS 11

In cooperation with Mayi de la Vega of ONE Sotheby’s International Realty

"I hired Sotheby's Concierge Auctions because their reach to the most elite buyers across the globe is unsurpassed, and I've been equally impressed by the attention to detail and business acumen of their entire organization. If I had the chance to sell this property again, Sotheby's Concierge Auctions would be my first call. They are the best organization in the world to produce the highest price for one-of-a-kind properties in an efficient manner."

— Robert Pereira, Seller

LESSON 02: Commissions

There are five ways that agents can earn money with the Sotheby's Concierge Auctions model.

REPRESENT A SELLER

Any time you represent a seller at auction and the auction closes, the seller pays your full commission based upon the final sale price and your signed listing agreement.

REPRESENT A WINNING BIDDER

Any time you bring a winning bidder to an auction anywhere in the world, you will receive an amount equal to the cooperating broker commission based on the final sale price. This is paid as a buyer’s agent commission if you are licensed in the jurisdiction or as a referral fee if you are not, as offered by the listing broker and funded by the seller.

RECEIVE A SELLER REFERRAL

Agents are the linchpin of a successful auction. Sotheby's Concierge Auctions has never conducted an auction without a listing agent. When a potential seller comes to us without an agent, we refer the homeowner to one of our Preferred Agents.

RECEIVE A BUYER REFERRAL

When a potential bidder comes to us without an agent, we refer the buyer to one of our Preferred Agents. Moreover, every auction has bidders who do not win; we refer them to listing agents on those sales. As an example, Preferred Agent Cindy O’Dare from Premier Estate Properties has closed more than $60M in sales as a direct result of the auction process, often representing bidders who did not win an auction, but who were still interested in buying in the area.

REFER A NEW LISTING AGENT/PROPERTY

If you know of a colleague with a $1M+ listing that is proving challenging to sell, refer them to Sotheby's Concierge Auctions. If the property successfully sells at auction, you will be paid 0.5% of the gavel price.

OPPORTUNITIES

REPRESENT A SELLER

REPRESENT A WINNING BIDDER

RECEIVE A SELLER REFERRAL

RECEIVE A BUYER REFERRAL

REFER A NEW LISTING AGENT WITH PROPERTY

REPRESENT A SELLER

REPRESENT A WINNING BIDDER

RECEIVE A SELLER REFERRAL

RECEIVE A BUYER REFERRAL

REFER A NEW LISTING AGENT WITH PROPERTY

A Preferred Agent is an agent who has transacted with Sotheby's Concierge

Auctions on either the seller or bidder side and/or is knowledgeable about our auction model. Preferred Agents are members of our global network of agents, are highlighted on ConciergeAuctions.com, and have access to co-branded marketing materials.

OPPORTUNITIES: BASED ON A $5M SALE

Q&A

Q: What five ways can you make money with Sotheby's Concierge Auctions?

A: Represent a seller. Represent a winning bidder. Refer a new listing agent. Receive seller or buyer referrals from Sotheby's Concierge Auctions.

Q: Can you get paid if you bring a winning bidder to an auction in a location in which you are not licensed?

A: Yes. You will receive a referral fee equal to the cooperating broker commission, as offered by the listing broker and funded by the seller.

Q: How much would your referral fee be if you introduced a listing agent with a specific property to Sotheby's Concierge Auctions and it closed at a gavel price of $5M?

A: $25,000 ($5,000,000 x 0.5% of the gavel price = $25,000)

NEXT LESSON

The properties that can benefit most from auction have a motivated seller, are unique, are in a challenging market, are overpriced, are in a vacation destination, or in a remote location—or a combination of these.

Lesson 03 will explore what makes a property suited for auction.

Visit: ConciergeAuctionsReferral.com

Email: referrals@conciergeauctions.com

Call: +1 212.390.8144 | +44 203.327.2751

STATESVILLE, NORTH CAROLINA

Sold for $5.4M

SHOWINGS

30+

BIDDERS 9

In cooperation with Derek Rowley of Mountain Sotheby's International Realty

"My experience working with Sotheby's Concierge Auctions has been one of the most rewarding in my 10-year real estate career. The entire process was absolutely world-class. I have never before witnessed the high level of professionalism, organization and detail their entire team brought to this sale, and it was a privilege to be a part of it. I look forward to a long and prosperous relationship with Sotheby's Concierge Auctions and would give them the highest recommendation to anyone looking to sell their property."

— Derek Rowley, Listing Agent

LESSON 03: Properties Suited for Auction

The properties that benefit most from auction have a motivated seller, are unique, overpriced, in a challenging market, vacation destination, or remote location—or a combination of these.

A MOTIVATED SELLER

When a homeowner prioritizes selling quickly, the auction process answers that need—approximately 60 days from launch to close.

A UNIQUE PROPERTY

Unique properties—whether by design, location, amenities, purpose, or price point—usually require a very specific buyer from a smaller buyer pool. Our global outreach allows us to present luxury properties to these niche buyers.

A CHALLENGING MARKET

By re-framing the schedule around a set sale date, auctions create a sense of urgency and excitement and bring buyers to the table ready to bid.

AN OVERPRICED LISTING

In a situation where a property is generally overpriced it can sit accumulating days on market. Research has shown that the amount of time a listing remains on the market can have a direct negative impact on the ultimate sales price of the property. Auctions can alleviate the challenge of days on market.

VACATION DESTINATION

Sotheby's Concierge Auctions reaches beyond the local market to luxury buyers in key feeder markets for the locale. Auctioning allows sellers set a sale date during the area’s peak selling season.

REMOTE LOCATION

Some of the most spectacular homes are in remote locations. It can be difficult to reach the right buyer. Sotheby's Concierge Auctions marketing reaches global buyers ready to compete for these properties.

1,237

SHOWINGS

43

In cooperation with Malia Cox Nobrega & Barbara Scrivens of LIV Sotheby's International Realty

"It was truly a pleasure to work with Sotheby's Concierge Auctions on the sale of 318 Kicking Horse Trail in Cordillera, CO. Our Project Managers were the consummate professionals and exceeded our expectations at every turn. The interest and number of buyers that Sotheby's Concierge Auctions was able to generate created the perfect environment for the ultimate sale of the property. The experience of being part of this dedicated and specialized team was extremely positive and the end result gratifying for all involved."

— Barbara Scrivens, Listing Agent

Q&A

Q: What are the characteristics of luxury properties that are best suited for auction?

A: A motivated seller, a unique property, a challenging market, an overpriced listing, a vacation destination or a remote location.

Q: Why would an auction help sell a property in a slow-moving market?

A: Auctions create a sense of urgency.

Q: Why are unique properties a good fit for auction?

A: Sotheby's Concierge Auctions’ propertyspecific marketing campaigns reach niche buyers interested in one-of-a-kind properties.

Q: If you have a seller who is extremely motivated, why is auction a good solution?

A: It allows a seller to sell on their timeline— usually within 60 days—contingency free.

NEXT LESSON

Our auction format attracts interest from both the seller side and buyer side as a profitable way to sell and buy houses.

Lesson 04 will cover the ten benefits of luxury property auctions.

Visit: ConciergeAuctionsReferral.com

Email: referrals@conciergeauctions.com

Call: +1 212.390.8144 | +44 203.327.2751

LAS VEGAS, NEVADA

Sold for $6.71M

SHOWINGS

28

BIDDERS 12

In cooperation with Kristen Routh Silberman of Synergy Sotheby's International Realty

"Working with Sotheby's Concierge Auctions is always a thrill—from excitement and anticipation to ultimately, success—and the buyer interest in this sale was especially rewarding. Since the first time I met Sotheby's Concierge Auctions after their auction of Cher's Hawaii estate in 2010, I've been a fan. They are the best of the best at driving qualified, global interest and revealing value of one-of-a-kind properties."

— Kristen Routh-Silberman, Listing Agent

LESSON 04: 10 Benefits of Auction

Our auction format attracts both seller side and buyer side interest as a profitable way to sell and buy homes.

1. GOING, GOING, GONE!

Many clients already buy and sell art, collectibles, and luxury cars at auction. Because they are comfortable with auctions, working with Sotheby's Concierge Auctions is a natural next step.

2. TIMING

With traditional real estate transactions, the timing of a sale is determined by the market. By using auctions, sellers have control over when their property will sell.

3. EXTENSIVE, PROPRIETARY DATABASE

Sotheby's Concierge Auctions has the largest footprint of any real estate auction marketplace—owning 90%+ of the luxury auction sphere. We have invested more than $20 million dollars in growing our database—now totaling more than 850,000 people, including qualified high-net-worth buyers, agents, and industry experts. Sotheby's International Realty listings also receive exposure to Sotheby’s 670,000± daily subscribers.

4. COMPETITION FROM MULTIPLE BIDDERS

Our global marketing introduces each property to an extraordinary number of qualified buyers—typically resulting in 3 to 7 bidders per property competing in a transparent bidding war. Bidders come to win and the competition drives up the price. The result is a winning bid that reflects the true market value.

5. TRANSPARENCY

From our first conversation until closing, we are committed to full transparency with you and your seller. We will explain how the auction process works, what we will deliver, and what your seller can expect when the auction is live. Before each auction opens, we provide the starting bid range, bidder lineup, and all exposure metrics to the seller so that they are fully informed of what to expect.

6. VETTED BUYERS

We vet every bidder before a bid is placed. Prior to the auction, bidders must sign our Auction Terms & Conditions and wire a deposit into an escrow account. They must also provide a bank letter stating proof of funds with the ability to close in 1–4 weeks.

7. EXCLUSIVE

We know every luxury home and select only the best. One of every 20, to be exact. The result? Buyers have direct access to incredible deals on the world’s finest properties.

8. FOCUSED ATTENTION

Each property is assigned a team of specialists. Their focus? You and your client. As an agent, it is neither feasible nor profitable to solely focus on one listing. We provide a dedicated auction team who fields opportunities, promotes the auction, and hosts scheduled showings from launch to auction.

9. NOT DISTRESSED. AT ALL.

None of our assets are distressed—quite the opposite, in fact. The properties we auction regularly break multi-year records for the highest sale in their market. To date, we have broken five world records for highest sale price at auction. We have many repeat agents and sellers who, from the start, are choosing the auction format for their listing.

10. MITIGATE DAYS ON

MARKET

The number one issue affecting the final sale price for luxury homes is Days On Market. Every day a property is on the market decreases a buyer’s perception of its value. With a quick online search, buyers can clearly see the full history of a property including total Days On Market, price history, every listing agent hired, every price reduction made, and every time a property has been de-listed and re-listed. With our global outreach, we mitigate the issue of Days On Market by introducing listings to scores of potential buyers, creating urgency in the market with a certain sale date, often resulting in multiple, vetted bidders and a closing within 1–4 weeks from start to finish. There is no better way to orchestrate a sale on your seller’s timeline.

Q&A

Q: How is an auction different from the traditional resale model?

A: Sellers are at the mercy of the market with the traditional resale model. Auctions give sellers control to name the sale date.

Q: Do sellers remain in complete control?

A: Yes. Your seller has the control to move forward or cancel the auction up until the evening before the auction opens.

Q: Do property auctions create a multiple offer situation?

A: Yes, it also creates a transparent bidding war between buyers.

Q: Are the bidders vetted?

A: Yes, highly. Typically, all bidders wire a $100,000 deposit into escrow, show proof of funds, and sign Auction Terms & Conditions, which makes each bid a binding offer.

NEXT LESSON

Our process normally results in 200–400 prospects, 25–50 open houses, and 3–7 bidders.

Lesson 05 will describe how we consistently generate interest and will show a detailed timeline of the auction from launch to close.

Visit: ConciergeAuctionsReferral.com

Email: referrals@conciergeauctions.com

Call: +1 212.390.8144 | +44 203.327.2751

PHILADELPHIA AREA, PENNSYLVANIA

Sold for $6.552M

PROSPECTS

2,420

BIDDERS

9

In cooperation with Janet Rubino & Wendie Steffens of Kurfiss Sotheby's International Realty

"Sotheby's Concierge Auctions did exactly what they do best: exposed this property with incredible reach through their robust marketing strategies, on-site sales outreach, and extensive database of ultra-high-net-worth buyers."

— Janet Rubino, Listing Agent

LESSON 05: Timeline

The auction timeline is intense, but extraordinarily effective. Here is how it works:

From launch to close, the auction timeline is typically within 60 days.

PHASE I—UNDERWRITING: Once the Auction Agreement is signed, the property moves into Underwriting for committee review and approval.

PHASE II—PREPARATION: After the property has passed Underwriting, the auction team will be assigned to begin launch preparations. This includes the gathering of marketing assets and materials, collating of the diligence package, and forming the sales strategy.

PHASE III—GLOBAL LAUNCH & EARLY BIDDER

AGGREGATION: On launch day, the property will go live on our global marketplace, ConciergeAuctions.com. The global marketing campaign and early bidder aggregation will begin, including targeted database member outreach and open houses/scheduled showings.

PRE-AUCTION CALL: Approximately 12 to 24 hours prior to bidding opening, a call will be scheduled with the auction team to review the initial bidder lineup and any Starting Bids.

PHASE IV—LOCAL MARKET & ADDITIONAL BIDDER ENGAGEMENT: Bidding continues for approximately two weeks, on ConciergeAuctions.com, during which time the MLS will be continually adjusted to the current high bid. The Sotheby's Concierge Auctions’ database is re-engaged and the auction team and listing agent collaboratively expose the opportunity to the local market for new interest.

SIGNED AGREEMENT

PHASE V—CLOSING: Once bidding concludes, the property will move into the closing period, led by the chosen escrow agent, which will take approximately 1–4 weeks.

PHASE I: UNDERWRITING

PHASE II: PREPARATION & DILIGENCE

Timing: 2 Weeks

AUCTION LAUNCH

PHASE III: GLOBAL MARKETING & EARLY BIDDER/DATABASE AGGREGATION

Timing: 3 Weeks

PRE-AUCTION CALL

UNDERWRITING APPROVED BIDDING OPENS

PHASE IV: BIDDING & ADDITIONAL BIDDER/LOCAL MARKET ENGAGEMENT

Timing: 2 Weeks

BIDDING CLOSES

PHASE V: CLOSING

Timing: 1–4 Weeks

Q&A

Q: How long is the marketing period for a typical auction?

A: Four weeks is the typical time period for our marketing exposure period and the scheduled showings.

Q: How quickly can a property launch once the seller signs with Sotheby's Concierge Auctions?

A: Properties can launch in as little as two week from signing the auction agreement.

Q: How long is the whole process?

A: From launch to close, approximately 60 days.

NEXT LESSON

It is truly a collaboration between Sotheby's Concierge Auctions and the listing agent. Properties with an involved listing agent achieve a higher final bid price.

Lesson 06 will describe the listing agent’s role in the auction process.

HOUSTON, TEXAS

Sold for $6.384M

SHOWINGS

46

BIDDERS 3

In cooperation with Kellie Geitner of Martha Turner Sotheby’s International Realty

"Compared to selling a luxury property on the traditional market, six weeks is but a fraction of the time a listing may go unsold. But six weeks for the Sotheby's Concierge Auctions team and their process was enough to earn my trust, market the property on not only a local but a global scale, and ultimately identify the perfect buyer for this property. Their accelerated process and world-class database are truly unmatched.”

— Kellie Geitner, Listing Agent

LESSON 06: The Listing Agent's Role

It is truly a collaboration. Properties with an involved listing agent achieve a higher final bid price. Here are the key actions that you do to help attain the best results.

FOLLOW UP ON LEADS DAILY

The listing agent will be notified of all lead activity. The listing agent and the dedicated Sotheby's Concierge Auctions team will decide who will contact a new lead.

BROKERAGE COMMUNITY/OUTREACH

As the local market expert, the listing agent will ensure that the Sotheby's Concierge Auctions team is reaching the area’s top producers and will make key introductions for property presentations. Typically, 1/3 of bidders are generated from local market and agent outreach.

LOCAL MARKET INSIGHT

The listing agent will be asked to prepare a list of existing and sold comparables for the Sotheby's Concierge Auctions team. It is important for them to have a deep understanding of the competition.

UNDERSTAND THE MESSAGE

It is crucial that the listing agent and the Sotheby's Concierge Auctions team are relaying the same message in a consistent manner.

THE PROPERTY EXPERT

The listing agent is the property expert. The Sotheby's Concierge Auctions team is the auction expert. The two are a team and will communicate daily. All information is shared in a timely manner.

SCOTTSDALE, ARIZONA

Sold for $5.5M

SHOWINGS

200

BIDDERS

13

In cooperation with Frank Aazami of Russ Lyon Sotheby's International Realty

"Our objective was to move this property in an expedited process, versus the delays and uncertainties of traditional brokerage. The auction presented urgency and forced a conclusion. It was very important that we select a skilled and experienced auction company, and there’s no doubt Sotheby's Concierge Auctions did the job."

— Jim Coles, Seller

Q&A

Q: Typically, from where are the bidders sourced?

A: 1/3 from the local market, 1/3 from the Sotheby's Concierge Auctions database, and 1/3 from our marketing, advertising and agent and buyer outreach.

Q: What ways can a listing agent help to achieve the highest price for the property?

A: Work with the Sotheby's Concierge Auctions team, help with leads, agent/ brokerage outreach provide local market insight, understand the message, be the property expert.

NEXT LESSON

Sotheby's Concierge Auctions uses two auction formats—With Reserve and No Reserve.

Lesson 07 will explore these auction types as well as other sale possibilities.

Visit: ConciergeAuctionsReferral.com

Email: referrals@conciergeauctions.com

Call: +1 212.390.8144 | +44 203.327.2751

SANTA BARBARA, CALIFORNIA

Sold, Listed for $14M

OPEN HOUSES

70

SHOWINGS 33

BIDDERS 5

In cooperation with Mike & Micah Brady of Sotheby's International Realty Santa Ynez Valley Brokerage

"Deer Lodge has all the elements of a first class retreat. It is a private, spectacular setting with vistas in one of the most beautiful places in the world. This auction represents a oncein-a-lifetime chance to purchase the best of the best California lifestyle."

— Mike Brady, Listing Agent

LESSON 07: Types of Auctions

Sotheby's Concierge Auctions uses two auction formats. In this lesson, you will learn about these type of auctions and other sale possibilities that could happen during the marketing exposure period.

TWO TYPES OF AUCTIONS

No Reserve: With a No Reserve auction there is no minimum sale price. The property will sell to the highest bidder. This is Sotheby's Concierge Auctions’ most powerful format as it typically encourages more bidders to join, adding more competition to the auction.

With Reserve: With a Reserve auction, a bid must meet or exceed a pre-determined reserve amount before the property can be sold. Once the bidding has reached or surpassed this amount, the property will sell to the highest bidder.

CALGARY, CANADA

SHOWINGS 29 BIDDERS 8

In collaboration with Corinne Poffenroth of Sotheby’s International Realty Canada

"The sale of this property at a price that is the highest for a detached home in Calgary since January 2015 demonstrates the fact that there is underlying demand for luxury real estate in the region. While the current market offers favourable conditions to prospective buyers, those who are selling high-end properties can also be assured that there are qualified buyers for their homes. It is simply a matter of ensuring strategic pricing, targeted marketing, and ensuring that you have expert counsel to guide every aspect of the process.”

— Mary-Ann Mears, Managing Broker

Q&A

Q: What are the two auction formats that Sotheby's Concierge Auctions uses?

A: No Reserve or With Reserve

Q: Which auction format tends to be more powerful?

A: No Reserve

CONGRATULATIONS

You have successfully completed An Agent's Guide to Luxury Property Auctions. We look forward to working with you. If you have a listing you would like to discuss, a bidder interested in a property, or if you have any questions please contact us.

Visit: ConciergeAuctionsReferral.com

Email: referrals@conciergeauctions.com

Call: +1 212.390.8144 | +44 203.327.2751

THOUSAND

PROSPECTS 188 SHOWINGS 97

In collaboration with Nicki LaPorta & Karen Crystal of Ewing & Associates Sotheby's International Realty

"The number of showings produced in just a few weeks by Sotheby's Concierge Auctions was significant. The buyers fell in love with the property, including the fabulous amenities, 20 acres of privacy, and unrivaled mountain views. The fear that they might lose it forced them to act fast and purchase before auction day. This was an exciting process to be a part of. Everyone was aware of the seller’s commitment, and the buyers were decisive and knew they had found their home."

— Karen Crystal, Listing Agent

ConciergeAuctions.com | +1 212.202.2940 | +44 203.327.2751

Concierge Auctions, LLC, (“Concierge Auctions”) is an auctioneer. Concierge Auctions’ principal address is 228 Park Avenue South, Suite 70835, New York, NY 10003, and its phone number is (212) 202-2940. If required, Concierge Auctions (or its representative) is registered, licensed and/or bonded in the U.S. state where the property to be auctioned is located. Concierge Auctions (in certain jurisdictions) and certain Concierge Auctions subsidiaries, employees, and representatives may possess real estate broker or salesperson licenses in various jurisdictions and may, in some circumstances, perform functions that may be deemed brokerage services, however, neither Concierge Auctions nor its agents, employees, and affiliates are acting as a broker in any capacity for any party in connection with this auction. Bidders must seek brokerage services or advice from their own real estate agents or professional advisers. Our brokerage licenses are held solely for compliance purposes to further our auctioneering services. Concierge Auctions, the Listing Agent, the seller of the property and their respective agents, employees, and affiliates do not represent, warrant, or guarantee the accuracy or completeness of any information and shall have no liability for errors or omissions under any circumstances in this or any other property listings or advertising, promotional or publicity statements, and materials. This is not meant as a solicitation for listings or an offer to sell real property. Cooperating brokers are encouraged to participate as set forth in Concierge Auctions bidder terms and conditions.