COMPANY OVERVIEWFounded in 1989, Auction.com is the largest auctioneer of real estatein the world. During the past 4 years, Auction.com has sold morethan $12 billion of residential and commercial real estate on behalf ofthe nation’s largest lenders, special servicers, prestigious developersand private individuals. Between its 65,000 square foot company-owned office in Irvine, CA and its Dallas and NY offices, Auction.comemploys 567 people across the country specializing in all areas ofreal estate transactions.Having spent more than $5 million and 250,000 man hoursdeveloping its state of the art website and online auction platform,Auction.com is today the undisputed leader of online real estatesales in the United States. Auction.com has over 1 million uniquevisitors per month and a database of over 4 million people. Thiscombined with the fact that it spends in excess of $35 million a yearin marketing, means that every property that is listed on the websitereceives the maximum amount of exposure to the relevant market.As a result of continued downward pressure on prices, the USresidential market has been markedly tilted in favor of buyers.Through the use of its sustained and comprehensive marketingcampaigns combined with the intense excitement andcompetitiveness of an auction forum, Auction.com has managed torebalance the scales of demand and supply. In the same mannerthat the distinguished auction firms of Sotheby’s and Christie’s havesuccessfully created a market for luxury art, wine and jewelry byallowing bidders to compete in an open and transparent exchange ,so too has Auction.com established itself as the premier platform forthe sale of luxury real estate. 2
CURRENT CLIENTS – 92 INSTITUTIONAL CLIENTS CURRENTLYSELL ASSETS ON AUCTION.COM 3
PLATINUM SUCCESS• Our foray into auctioning off high-end REO assets started with our platinum program Beverly Hills, CA Sold $3.8MM• Through the Platinum program we have 109% of BPO Value achieved the following success:• Sales Results •167 High-End Assets Sold for a Total of $116 million •85% Brought to Auction Have Sold Newport Beach, CA Sold $1.625MM •Average Purchase Price 100% of Agent BPO Value 100% of List Price •Average Purchase Price 90% of List Price ` Coto De Caza, CA Sold $1.086MM 97% of Reserve 4
SELLER BENEFITS• National and international marketing reach • Auction.com spends in excess of $35 million per year to create maximum market exposure for our clients• 30-60 day execution and date certain close • $1+ Million homes may linger on the market for years at a time• Access to a 4+ million buyer database• Auction.com receives over 1 million unique visitors per month• Cutting edge technology for convenience and transparency• Competitive bidding = Higher prices• Bidders are prequalified prior to bidding• No post auction contingencies – properties are sold “as-is where-is”• Certainty of close• All auctions are with reserve which are set at sellers’ discretionAuctions Pose No Risk or Cost to Seller 5
THE DIFFERENTIATOR: MAXIMUM MARKETING• E-marketing, TV, print and direct mail• State-of-the-art website at www.auction.com• 4+ million prospect database• $35 million annual media spend• Local, national and international print• Local classified listings• Auction event catalogs• Display ads in leading publications• Property signage 6
TIMELINE TO MARKET AND CLOSE45-40 DAYS 40-35 DAYS 35 DAYS 3-4 WEEKS 1-2 WEEK AUCTION CLOSING PRIOR PRIOR PRIOR PRIOR PRIOR DAY Auction Data Tape and Website Live Leads Brokers hold PSAs signed atAgreement Photos generated & one open Auction close; Executed uploaded to Marketing contacted by house 10% EMD in RCP/Spring campaign brokers 24-hrs Prelim launched POF’s and/or Ordered Title Received Potential prequal letter 30 day closing and Uploaded Bidder due buyer lists collected from Data Tape diligence mined Registered Funds disbursed submitted Auction period begins Buyers Campaign Financing/ Reserve Outlined and Broker and escrow Accepted reviewed Client Kick-off determined call 7
UNPARALLELED REPORTING CAPABILITIES Luxury Homes Pre-Auction Event Summary Registration and Guest Summary Valuation Info S eller S eller Total Total Total Open Auction Total Unique Valuation Opening Bid - Reserve to Reserve toEvent Code Auction Name Approved to POF S aved To House Foot S eller CLP BPO Value S eller Reserve Date Registered Web Hits Date Live S eller CLP Broker Bid Faves Traffic (%) BPO (%) Newport Coa s t - Pel i ca n Hi l l Es ta te Luxury X-000 Home Aucti on 06/09/2011 20 18 11 11,634 79 900 8,000,000 5,000,000 40,513 2,400,000 4,500,000 56.3% 90.0% Luxury Homes Bidder Report Summary and Live Bid Details Sold PropertyEvent Id Auction Name Auction Date Status Property Address Property City State Property Type Bids Unique Bidders Web Hits Newport Coas t - Pelican NEWPORT X-000 Hill Es tate Luxury Auction 06/09/2011 Sold 28 FAIRWAY PT COAST CA Single Family 63 12 11,634 Property Auction Bidder Bidder First Event Id Address Property City State Date Id Name Bidder Last Name Bid Amount Bid Date Time X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24727 Howard Meese 4,600,000 6/9/2011 5:25 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24853 Randy Gabai 4,625,000 6/9/2011 5:25 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 4,700,000 6/9/2011 5:25 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24853 Randy Gabai 4,725,000 6/9/2011 5:26 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24918 Michael Pearl 4,750,000 6/9/2011 5:27 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26691 Mohammad Nadallah 4,775,000 6/9/2011 5:28 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24918 Michael Pearl 4,800,000 6/9/2011 5:30 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 4,850,000 6/9/2011 5:31 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26691 Mohammad Nadallah 4,875,000 6/9/2011 5:34 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 5,000,000 6/9/2011 5:37 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24918 Michael Pearl 4,900,000 6/9/2011 5:37 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26691 Mohammad Nadallah 5,025,000 6/9/2011 5:37 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 5,100,000 6/9/2011 5:40 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26691 Mohammad Nadallah 5,150,000 6/9/2011 5:42 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 5,160,000 6/9/2011 5:43 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26691 Mohammad Nadallah 5,170,000 6/9/2011 5:45 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 5,180,000 6/9/2011 5:47 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26691 Mohammad Nadallah 5,200,000 6/9/2011 5:49 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 26166 Christine Higelson 5,300,000 6/9/2011 5:51 PM X-001 28 FAIRWAY PT NEWPORT COAST CA 06/09/2011 24918 Michael Pearl 5,310,000 6/9/2011 5:53 PM 8
PLATFORMOur online platform offers sellers andbuyers a state-of-the-art service.• Allows property sellers to: • Offer assets online for maximum exposure • Maintain confidentiality and information control • Self reserve • Monitor real-time bidding, set reserve prices and control final timing of sales • Obtain best execution from worldwide market iPad app 9
HOW DOES BUYING YOUR HOME ONAUCTION.COM/LUXURY WORK? 10
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