Sotheby's Concierge Auctions | Broker Partner Guide

BROKER/AGENT PARTNER GUIDE

RANCHO SANTA FE, CA | SOLD FOR $7.04M

The World Leader

Concierge Auctions is the world’s largest luxury real estate marketplace, backed by our ownership of Sotheby’s, as the world’s oldest and leading auction house established in 1744, and Anywhere Real Estate (NYSE: HOUS), the world’s most extensive agent network. Still ran by our founders, our platform is enhanced with deep auction expertise and heritage, innovation, and access to an unmatched network of fine art and luxury goods collectors. We have been active in 36 countries and 46 US states. Our body of work can be viewed on conciergeauctions.com.

Our Team

We have assembled specialists in project management, marketing, public relations, finance, legal, infrastructure, and technology. In cooperation with your listing agent, an entire team is engaged on your property. Comprised of professionals based in seven countries, including the United States, Mexico, the UK, Spain, and Switzerland, Canada, and Italy, our platform and team are focused on reaching more buyers in more places and are a true competitive advantage.Auctions continues to operate independently, partnering with real estate agents affiliated with many of the industry’s leading brokerages to host luxury auctions for clients.

Timing Is Everything

We understand that luxury properties are difficult to value and sell. And, that time can be, if not more, valuable than money. Our research continues to show that if a luxury property does not sell quickly, it will linger on the market upwards of years and sell for a fraction of the original asking price. The top sales in the top luxury markets in America alone are not only selling for 10% less than in years prior, they are taking an average of 300 days to do so. Moreover, for the 50% that are listed for more than 180 days, it is taking nearly double this time. Simply put, it can take time to find the right buyer. This is where we come in. We are skilled at pairing sellers of the world’s finest properties with the world’s most capable buyers. We bring unmatched reach, speed, and certainty to what can otherwise take years.

60 Days, From Sign To Sell

Our process is 60 days, from the day you sign up to the day you close. Typically, our platform will garner 200–400 inquiries, 25–50 showings, and 3–7 bidders via a four-pronged approach:

1. Package your property for market.

2. Expose it globally to our auction insiders via our proprietary database of 850,000± contacts who will hear about your property first.

3. Engage the local market.

4. Facilitate a fast and easy closing that is as-is, where-is, and contingency-free.

What’s in it For You?

Our award-winning platform allows your clients the control to sell their luxury property on a set timeline. Using a combination of targeted marketing strategies and sales techniques, the exposure period is typically five weeks.

• You keep your listing

• Earn your commission

• You and your client are in control of sale timeline

• Targeted exposure to our global database of 850,000+

• Sotheby’s International Realty listings also receive exposure to Sotheby’s 670,000± daily subscribers.

• New buyer leads

Awards and Accolades

• “Fastest Growing Company” – 6 Years in a Row – Inc. Magazine

• CEO Laura Brady and President Chad Roffers awarded “Most Influential Leaders in Real Estate” – Inman News

• “Best Overall Marketing” – Who’s Who In Luxury Real Estate

• Hundreds of Marketing Awards, including “Best In Show” –USA Today and National Auctioneers Association and 45 “Telly Awards” for film production

• No. 38 on the 2018 Entrepreneur 360TM

• Ranked on the Financial Times Americas’ Fastest Growing Companies 2020 list

Global Networks and Alliances

We are an exclusive or preferred auction provider and top choice to many global and industry-leading broker networks, including:

• Sotheby’s International Realty

• Leverage Global Partners

• Who’s Who in Luxury Real Estate

Your Team

You’ve hired an entire team, and that team begins with your Auction Director. From the execution of your Auction Agreement forward, your Auction Director will be your primary point of contact throughout the auction cycle and will be in consistent communication with your entire auction team, including your Business Developer, listing agent, marketing, compliance, client services, and the closing professionals. They will be laser-focused on ensuring the successful sale of your property, communicating while also keeping you up to date on key milestones along the way. Your auction team’s responsibility is to identify and register bidders to purchase your property. They will arrange showings, manage leads, network with brokers and potential buyers, and work throughout the exposure period to engage the market.

Getting to Work ASSETS

To begin, your dedicated Marketing Manager (MM) will request any existing information on the property, including:

• High-resolution property photos and lifestyle images of neighborhood/area.

• All available documents, including floor plans, inspections, appraisals, spec lists, state-required diligence documents, etc.

• Listing agent and brokerage firm info as filed with the state, including name, license number, address, and any additional licensure information.

• ‘Say cheese’ — Your headshot for use on our website.

MESSAGING APPROVAL

Your MM will provide you with new messaging for use in print and online. This will be sent to you for approval prior to use.

THE LAUNCH CALL

During the call with everyone involved—you, the client, and the Sotheby’s Concierge Auctions team—will focus on preparing for the exposure cycle. An agenda will be sent prior with tasks for everyone on the call.

ATLANTA AREA, GA | SOLD FOR $9.25M

Auction Sale & Purchase Contract

You and the Sotheby’s Concierge Auctions counsel will work together to prepare these documents, including all necessary addenda and disclosures by launch day (when the property “goes live” on ConciergeAuctions.com). The property is being sold “as-is,” without contingencies. Therefore, the Auction Sale and Purchase Contract is the only contract that will now be considered by the seller. This will be discussed in further detail on the Launch Call.

Exposure & Outreach

You will work with your auction team to compile a list of top area agents to contact, offices to visit, and sales meetings to attend, as well as any other events that will help to expose the opportunity to the local market.

How to Help Your PM: FOLLOW-UP ON LEADS DAILY

You’ll be notified of all lead activity. You and your auction team will decide who is the best choice to contact a new lead.

BROKERAGE COMMUNITY AND OUTREACH

As the local market expert, we’ll rely on you to ensure we are reaching the area’s top producers and to make key introductions for property presentations. Typically, we see 1/3 of bidders generated from the local market and agent outreach.

LOCAL MARKET INSIGHT

Prepare a list of existing and sold comparables for the auction team. It’s important to know what we’re selling against.

EXUMA, BAHAMAS | SOLD FOR $18.7M

UNDERSTAND THE MESSAGE

It is crucial that you and your auction team are relaying the same message in a consistent manner. They will work with you on these points.

YOUR ROLE AS PROPERTY EXPERT

You are the property expert. The auction team is the auction expert. You are a team and will be communicating daily, so all information will be shared.

BUILD A FIELD OF BIDDERS

Our goal is to build a field of 3–7 registered bidders for every auction. Bidders will come from a mix of: the Sotheby’s Concierge Auctions database, other brokers/agents, marketing and sales efforts, and you. For a successful auction, it is important to encourage bidders at all price points. Your auction team will go over the concept of “building the ladder” in more detail.

The Auction

Bidders in our auctions can participate from anywhere in the world and often do.

In a digital auction, bidders can participate via the Sotheby’s Concierge Auctions online marketplace, ConciergeAuctions.com. Each bidder will also have access to a dedicated Bidder Representative on a private phone line in case they need any help or have questions along the way. Bidding for our properties is typically open for approximately two weeks.

KEY LARGO, FL | SOLD FOR $5.72M

Questions You May Be Asked:

WHAT TYPE OF AUCTIONS DOES SOTHEBY’S CONCIERGE AUCTIONS OFFER?

There are two typical auction formats. With Reserve and No Reserve. Our most powerful format is the No Reserve auction, which means there is no minimum sale price, and the highest bidder will own the property. A Reserve auction means that the 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 sells to the highest bidder.

WHAT QUALIFICATIONS MUST A BIDDER MEET TO PARTICIPATE?

Prior to auction, each bidder is required to do three things:

• Sign the Auction Terms and Conditions for the sale. This means they agree to the terms of the auction as an as-is, no-contingencies sale.

• Wire a Bidder Deposit into an escrow account. The amount varies per property but is typically $100,000. This deposit is refunded to all nonwinning bidders within 3 business days.

• Provide a bank letter to Sotheby’s Concierge

Auctions stating proof of funds and the capability to close on the property in approximately 1–4 weeks.

WHAT INCENTIVES ARE OFFERED FOR BIDDERS?

For No Reserve auctions, we offer a Starting Bid Incentive, a credit to reduce the Buyer’s Premium by 50% related to the Starting Bid Amount, encouraging buyers to submit a starting bid prior to the start of the auction.

WHAT IS A BUYER PREMIUM?

Almost every auction, regardless of what’s being sold—luxury real estate, fine art, jewelry, etc.—has a Buyer Premium (BP). We charge a 12% Buyer Premium. The BP is added to the high bid to calculate the total price.

WHAT TYPE OF DILIGENCE IS AVAILABLE TO POTENTIAL BUYERS?

A diligence package will be made available to all potential bidders. It is the bidder’s responsibility to perform any inspections he or she thinks are relevant in order to be satisfied with the condition of the property, and to review all due diligence materials provided before bidding. Each bidder assumes any and all risks associated with any such inspection.

The property is being sold in its existing “as-is, whereis, with all faults” condition, with no expressed or implied guarantees or warranties whatsoever, unless required by law. Personal on-site inspection of the property is strongly recommended. Bidders are advised to independently verify all information they deem important. If someone is interested in having an inspection done, you and your auction team will work with him or her to make the property accessible.

BOCA RATON, FL | SOLD FOR $9.075M

CAN THE PURCHASE BE FINANCED?

If a potential buyer is planning on securing financing to close, we strongly suggest that they secure the loan prior to bidding, since all of our auctions are never contingent on financing. This means that if you are the successful high bidder, and are unable to procure financing or close on time, you will forfeit your deposit and be subject to any additional remedies outlined in the Auction Sale and Purchase Contract and Auction Terms and Conditions.

CAN I USE MY OWN TITLE COMPANY?

No. The Auction Terms and Conditions and Auction Sale and Purchase Contract, which are agreed to prior to the auction, will govern. Specifically, the insurable title, as prepared and offered by the indicated title/closing company, will be the standard that is agreed to and accepted by the parties involved in the transaction. However, you may still have the title commitment inspected by your counsel prior to the auction.

SAN FRANCISCO, CA | SOLD FOR $5.628M

WHAT ABOUT TITLE INSURANCE?

All properties are transferred to the buyer by deed, with insurable title as determined by the title/closing agent indicated on the Auction Sale and Purchase Contract.

A preliminary title commitment is prepared and available at launch. The seller warrants insurable title per the Auction Terms and Conditions. Seller will obtain the title commitment from a thirdparty title/closing firm that will be identified in the Auction Sale and Purchase Contract. At closing, the buyer shall be given insurable title as the property is transferred by a deed, clear of liens or encumbrances. All buyers are welcome to review the title policy, which will be issued by a third-party title examiner.

HOW ARE CLOSING COSTS HANDLED?

Closing costs and procedures vary from state-to-state. We strongly recommend that buyers review the Auction Sale and Purchase Contract for each specific sale. In general, the seller pays for the thirdparty title examination fee, the title search fees, the title insurance premium, half of the closing fee, and is responsible for curing any title-related defects. Buyers typically pay the revenue stamps (documentary stamps) or other taxes customarily due upon filing of the deed, as well as half of the closing fee. The current year’s real estate taxes are usually pro-rated through the day of closing. Sotheby’s Concierge Auctions charges a Buyer Premium to the buyer. Buyers may also have additional closing costs related to a loan that is secured in order to close the transaction, any inspections/appraisals ordered prior to the sale, and any survey ordered prior to the sale.

WHEN IS THE CLOSING DATE?

The closing date typically occurs within 1–4 weeks from the conclusion of the auction. Keep in mind that the Auction Sale and Purchase Contract does not contain a contingency, and is an “as-is, where-is” contract.

The date of closing the purchase of the Property between Buyer and Seller will be the “Closing Date” in the Auction Sale and Purchase Contract.

In certain cases, seller may extend the closing date pursuant to the Auction Sale and Purchase Contract or as otherwise negotiated between seller and buyer, in seller’s sole discretion.

DOES SOTHEBY’S CONCIERGE AUCTIONS TAKE ON PROPERTIES WITHOUT LISTING AGENTS?

No. Any seller who engages us to auction their property must list their property with a local real estate agent. The seller’s agent does not represent the buyer, unless and where legally allowed, said seller’s agent is allowed to function on a transactional basis and represents the buyer.

CAN BUYER’S AGENTS EARN COMMISSIONS?

Yes. Buyer’s agents must be licensed, and must register with their buyer per the Auction Terms and Conditions.

AS A BUYER’S AGENT, AM I PAID THE CO-BROKE IF I PURCHASE FOR MYSELF?

Yes, as long as you submit your Auction Terms and Conditions with your name as the representative.

CRESTED BUTTE, CO | SOLD FOR $2.667M

JACKSON HOLE, WY | SOLD FOR $15.087M

AGENT COMMISSIONS, EARNED

We are an additional agent tool for highend listings and have never auctioned a property without a listing agent. We help agents bring the market, not chase it.

TRANSPARENT BUYING

We do not charge seller fees. The buyer pays a 6–12% premium. Listing and buyer agent commissions are protected.

CONVENIENT BUYING

We know every luxury home and select only the most realistic sellers. One in every 20 that comes our way, in fact. The result? Buyers have direct access to premium real estate in an open bidding platform that allows participation from anywhere in the world with complete convenience and full transparency. No more under offering. No more over paying.

KEY FOR KEY®

Every business has a responsibility to make a positive impact on the world. Our Key For Key® giving model guarantees for every home we sell, we build a home for a family in need. We believe in the empowerment and financial stability that comes with homeownership and its impact for generations.

+1 212.202.2940 | +44 203.327.2751 | ConciergeAuctions.com

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.