Exclusive Property Auctions
Antiques, fine art, jewels and other high value assets are sold through auction houses such as Christie's and Sotheby’s Unique, one of a kind premium real estate is sold through the prestigious international private auction platform of
Traditional Sales Method
Set Asking Price
negotiable and price reduces
Unknown Sales Time
sold or removed from the market
Solution - Private Auction
• prestigious sales method, similar to auctions for high value assets such as art and antiques • property is purchased at optimum market value through competitive transparent open bidding • control over time - the property will be sold within a known time frame • auction terms are set in advance and are non negotiable • unconditional sale with no contingencies i.e. subject to valuation, finance etc. • motivated sellers • motivated buyers
Unique One of a Kind Asset - Valuation Difficulties
Property Features • 17th century country estate set in 103.5 hectares. • 40km from Barcelona • registered as a unique historic building • main house of 1100 m2 • commercial licences • consecrated chapel • cottages • guest residences • hunting and fishing • western style ranch with stabling for 26 horses
Unique One of a Kind Asset - Valuation Difficulties
Market Price the sales comparison approach
Market Value the value component
The asking price is determined by local supply and demand, the property’s condition and what other similar properties have sold for without adding in the value component.
Value is not always about bricks and mortar. Some buyers might pay more for a property based on personal value-added items i.e. history, size, views, investment potential.
Problem: no comparative market analysis for unique properties.
Solution: auctions are buyer led.
Control Over Time
30 days
60 days
1-2 days
up to 30 days
Preparation
Global Exposure
Auction
Closing
Advantages - Vendor
• auctions are perfect for motivated, non distressed vendors, who seek to obtain a fair market driven sales price within a predetermined time frame • the property is exposed to a large number of pre-qualified prospects. Competition between bidders can fuel higher than expected offers • vendors can be protected by setting a reserve price • if the reserve price is not reached, private negotiations within the bidder´s pool can take place • auction terms are set in advance of the sale and are non negotiable and not subject to any contingencies i.e. subject to valuation, finance etc • pre auction offers can be accepted
Advantages - Buyer
• • • • • • • •
equal conditions for all bidders due diligence is carried out in advance of the auction date terms of sale are simple and straightforward the auction process is without negotiation and contingencies as terms of sale are set out in advance open and transparent auction bidder determines value based on current market conditions guaranteed to be the buyer if they offer the highest bid in excess of any reserve price auction dates can be set for up to two months therefore allowing for longer buyer participation
Partners - Listing and Buyer´s Agent Exclusive Property Auctions partner with the best luxury real estate agents in the world with no impact on original listing agreements or commissions.
Advantages For Listing Agent • listing agents can leverage valuation conversion rates and reduce withdrawals by offering discerning vendors the opportunity to list their property in a highly successful alternative/additional sales method • global marketing with exceptional visuals • property can still be sold prior to auction
Advantages For Buyer´s Agent • source for high end investors looking to purchase unique assets • buyer´s agents can register their clients for an auction and receive commission
Commissions - Exclusive Property Auctions | Listing Agent | Buyer´s Agent
Payee
Exclusive Property Auctions
Vendor
Buyer
Listing Agent
Buyer´s Agent
X% sales commission X% of sales commission
10% buyer´s commission
Contractual Relations : Vendor - Listing Agent - SPA
Vendor
+
Listing agent
+
Exclusive Property Auctions
+
Exclusive contract 4 months
The Bid Process 1
visit SPA website
6
bidder registration process and compliance regulations
7
read, sign and confirm all auction conditions
2
view upcoming auctions
3
register and create an account. We contact client to complete registration
8
bid deposit of 10% of guide price by bank guarantee
4
client has access to full property information
9
receive bidding authorisation code
5
view property with listing agent
10
attends physical auction at property or can bid by telephone or proxy
11
12
unsuccessful bidder(s): bid deposits annulled and enters pool of qualified buyers for new auction/ traditional sale
winning bidder: bid deposit, 10% of purchase price (minus bid deposit) plus buyer´s commission to be paid into the client bank account of Select Property Auctions within 72 hours Completion within 21 working days
The Bid Process The Reserve Price Is Not Reached • the auction is terminated • the bidders can enter into private treaty negotiations with the listing agent and vendor
The Losing Bidder (s) • register in another auction • view similar properties in the portfolio of the listing agent and purchase a property through the traditional method of private treaty
Exclusive Property Auctions
Exclusive Property Auctions Thank You For Your Attention