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Why Choose RealEstateAuctions.com

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Why Choose RealEstateAuctions.com

  1. 1. PRESENTED BY AMY SCHRADER
  2. 2. REALESTATEAUCTIONS.COM BRINGS SELLERS OF U.S. PROPERTIES TOGETHER WITH BUYERS HERE AND ABROAD IN THE FASTEST, MOST TRANSPARENT AND MUTUALLY BENEFICIAL WAY TO TRANSACT BUSINESS: THE REAL ESTATE AUCTION
  3. 3. OUR STORY • Parent Company is REA Worldwide, LLC • Sister company OwnACondo.com was founded in 1997 by Brian Kuzdas • 1997-2007 Converted 4,000 apt units to condos. Sold $1 Billion in condos • 2008-Began building OwnaCondo.com to represent Buyers and Seller • 2009-Completed first ballroom auction of 22 properties • Jan.2010-Purchased URL for RealEstateAuctions.com • 2010-2011-Began R&D to test, document and systematize Business Model that would guarantee a minimum of $40m-$100m in closed auction volume annually. • Completed R&D in Dec.2011 • April 2012-Launched prototype with expansion Rollout into all 50 states • By Dec. of 2012, we had 54 teams in place in 22 states and as of April 2013-We currently have 107 Teams, 30 States.
  4. 4. Expectations: 1. Multi- Billion Dollar Brand 2. $15 Billion in closed volume annually 3. Net 3% of the Buyer's Premium 4. Largest Auction Company in the US. 5. International Brand 6. 1400+ millionaire/mm. agents 7. Major influence in changing the US to an "Auction Country” How: 1. Create the Prototype that will guarantee Auction Teams $40M-$100M annually in closed volume when followed. The prototype is a set of systems used by each team regardless of the area they are servicing. 2. 2. Recruit 342 Teams to produce $40M-$100M annually. The Team consists of 1. Team Leader 2. Project Managers (3+) 3. 3. Each team is given a territory of approx. 500,000 to one million people to service. The service area will be divided up by counties Goals for 2012-2013
  5. 5. OUR STORY • Oregon market officially opens June 2013 • Amy Schrader hired as Business Development Executive for Washington, Clackamas, and Yamhill Counties. • Tom Anderson hired as State Broker of record and Business Development Executive for Multnomah, Hood River, Clatsop, and Tillamook Counties. • We are currently hiring for Business Development Executives for Marion and Lane Counties. • We are also hiring for Three Project Managers to assist each Team Lead and they will assist TL with prospecting and list properties for auction. • Even though auctions are our primary focus, we also perform traditional sales. • 2013 Local Auction Schedule • Date, time and location to be determined • Eligible properties include privately-owned or bank-owned residential, commercial, single- family, multi-family and more
  6. 6. THE TRUTH ABOUT REAL ESTATE AUCTIONS – SOURCE: NATIONAL AUCTIONEERS ASSOCIATION • Auctions are no longer considered a last resort or discount sales method for selling real estate in today’s marketplace. • Auctions are quickly becoming the first, best and only choice in many of today’s real estate markets. • The National Association of Realtors® (NAR) approves auctions and considers them a viable sales and purchase option. • ―Auction Fever‖ continues to grow as consumers continue to demand products quickly and for the price they wish to pay, win or lose. Auctions provide them with that option.
  7. 7. BUSINESS MODEL • Provide alternate outlet to sell all types of Real Estate • Traditional real estate sales model is dated and no longer best serves buyers or sellers • Amount of real estate sold nationally via auction continues to rise • Typical transaction closes within 45 days or less • Establish and develop long-term relationships • Build local network of Real Estate, Banking, Title and Investment professionals • Educate marketplace on auction as resource • Create value for our business partners • Develop Brand Recognition • Be the Gold Standard by which auctions are measured • Hold heavily attended and highly profitable auctions for our clients
  8. 8. COMMON AUCTION TYPES • Absolute Auction • Highest bid wins regardless of price • Absolute Auctions typically get the most bidding and more money for seller • Greater risk to seller, but greater potential reward • Minimum Bid Auction • Minimum Bid Auctions begin at a minimum price established by the seller • These offer a certain level of safety to the seller • Usually not as attractive to buyers as an Absolute Auction • Reserve Auction • Allows seller to accept, reject or counter the ―winning‖ bid, for any reason • Offers most protection to the seller • Typically reduces number of bidders and thereby lowers sale price. Bidders not as motivated
  9. 9. BENEFITS OF AUCTION • Assurance That the Property Will be Sold at True Market Value • In auction setting, market forces will be at work. • Atmosphere of auction drives emotional decision-making and creates competition among bidders enticing them to want to make highest and best offers. • Exposes Property to Large Number of Prospects • Local Marketing Plan • Network of Realtors® • Global exposure through website, and other internet and media channels
  10. 10. BENEFITS OF AUCTION • Multiple-level marketing plan ensures visibility by highest number of potential buyers • Buyers come Prepared to Buy. No Contingencies • All inspections done prior to auction • No question on whether if/when the house will sell • No drawn-out negotiating. • Perception of auction among buyers – Getting a Great Deal • The atmosphere of an auction creates high emotions and competition among Buyers • enticing them to bid more and make highest and best offer which provides accelerated sales and closing. • On average 30-45 days to close escrow • Deals are usually cash or buyers come in with pre-approved funding already in place.
  11. 11. We don’t outsource. We are relationship driven, not event driven, and have both business development and project management staff in virtually every market. No other auction company has the infrastructure we have with local reps in all 50 states under one company. We are very pro agent and Working with us is easy—and beneficial—if you’re an outside broker.
  12. 12. • Marketing Plan • Print, Billboard, Television, Radio can be utilized depending on budget • 4 – 6 week Marketing Blitz • Billboards, Door hangers, Print, Postcards, Signage • MLS listing • Social Media blitz including auction industry websites • Regular email blasts to network of Realtors®, Investors, Buyers and Builders • 2 to 3 Open Houses held in weeks prior to auction • Final push for buyers the day before auction • Weekly Sellers Report detailing all marketing expenses and activity
  13. 13. MARKETING • Marketing budget provided by sellers • Residential marketing fee: $1,500 per property • Commercial marketing fee: $2,500 per property • Fee paid upon signing of listing contract Lets say we have an auction of 20-30-50 properties. The way that works, is we take that money and pool it and that’s how we charge that little for that kind of property to get the kind of exposure that we are talking about. Typically realtors only spend about $150 to market properties, so as you can see here, the seller is getting a whole lot more marketing for their money. Whatever funds that is unused, would be refunded back to seller.
  14. 14. COMMISSIONS • Breakdown • 5% commission paid by seller to RealEstateAuctions.com • 5% Buyer’s Premium paid by buyer to RealEstateAuctions.com, so if a person gets the winning bid of $100,000 for a house, they actually would pay $105,000 for the property. • Cooperating Brokers receive 2.5% of sales volume • Case-by-case option: 10% Buyer’s Premium in lieu of 5% commission from seller • This is very common practice in auctions to charge a buyer’s premium. Some companies even charge up to 10% premium, again those charges are typical and can be negotiable.
  15. 15. AUCTION DAY • Ballroom Style • Multiple properties sold (need minimum of 12) • Rent space for event • Professional Auctioneer • RealEstateAuctions.com staff on site to facilitate event • Stand Alone event • Individual property auctioned • Event held at property • Professional Auctioneer • RealEstateAuctions.com staff on site to facilitate event
  16. 16. BENEFIT FOR CONTRACTORS AND BUILDERS • New subdivision is built. • We market and promote the auction of their first 2-5 homes to generate a buzz for the new neighborhood • Other option, we auction last 2-5 homes for closeout of the subdivision.
  17. 17. BENEFIT FOR REALTORS AND BROKERS • Realtors have that unmarketable property • They have a listing they are about to lose because of foreclosure or other reason • They have a listing that they just don’t want to spend another dime on marketing themselves. • We can market, promote, hold open houses, and sell property off at auction and another outside licensed realtor or broker would be paid a referral fee. • They have a large farm, rural, Luxury, or other property. These are perfect for stand alone or online auctions.
  18. 18. BENEFIT FOR INVESTOR OR HOMEOWNER • This provides quick sell date for property owner versus having to wait for a buyer to make an offer. • They no longer have to worry about keeping property showroom ready. • This ends burdensome holding costs for the seller until property gets sold. • There are no long drawn out negotiations between Buyer, Seller, and Agent. • No contingencies because property is sold as is. • Our multi-level marketing plan ensures visibility to the highest number of potential buyers. • They can utilize a 1031 exchange in auctions or wholesale property for quick profit.
  19. 19. BENEFIT FOR BUYERS • Buyers perception of auctions is to find a great deal • We have end buyer finance packages available with our close relationships of local lenders. These deals typically close 45 days or less. • They can pay with cash for quick close. • There are no long drawn out negotiations between Buyer, Seller, Agent. • Investors and Buyers have chance to inspect property before auction. • They can get into a home quickly.
  20. 20. QUESTIONS? THANK YOU –ANY QUESTIONS? Amy Schrader 971-270-8720 aschrader@realestateauctions.com Twitter: @amynschrader LinkedIn: www.linkedin.com/in/amyschrader

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