Auction Marketing Presentation

for Beachfront RealtyDecember,2009

byRichard Moravek and Ray TrecoJ P. King Auction Marketing Firm

Auction Marketing Presentation

for Beachfront RealtyDecember,2009

byRichard Moravek and Ray TrecoJ P. King Auction Marketing Firm

Growing PopularityGrowing

Popularity

What’s in it for my Client?

-- Selling Quickly-- No

Contingencies --Market Value $

What’s in it for my Client?

-- Selling Quickly-- No

Contingencies --Market Value $

Advantages of an Auction

• Focuses the entire buying market on your property!

• Ultimate “call to action”

• Sell potentially seven to nine years of inventory (based on current sales rate) through one event

• Realizes full up-side value established by highly competitive bidding techniques

What’s in it for me?

--Easy way to help the Seller get sold

and earn commissions

--paid FIRST at Closing

--Able to still represent buyers

What’s in it for me?

--Easy way to help the Seller get sold

and earn commissions

--paid FIRST at Closing

--Able to still represent buyers

TIME

55-75 days( depending on ___)

With client agreements by

February 1, 2010, we will have a

early March auction,with closing in 30 days

or less.

TIME55-75 days( depending

on ___)

With client agreements by

February 1, 2010, we will have a

early March auction,with closing in 30 days

or less.

What drives a successful auction?

The type of auction must be consistent with the buyers’ perception of their being able to purchase the property at their own price

Increasing the number of motivated bidders

Bidders aggressively pursuing the opportunity to purchase your property at their own price

The Key to a Engaging the Buyers

Selling on an Absolute basis (to the highest bidders without a minimum bid or reserve)

•Results in an overall increase in overall response (both inquiries & property tours) from Prospective Buyers

•The total attendance of bidders is increased

•Resulting in Higher prices for the property

Hybrid Auction condusive to the implementation of:The High Bidder’s Choice Method:The most effective bidding method to

maximize price

All bidders are forced to compete to win

Forces all bidders to compete against each other in each and every round of bidding It significantly stimulates competition and establishes higher prices

Real Estate

Track Record

Real Estate

Track Record

Habersham MillsHabersham MillsHabersham County, GeorgiaHabersham County, Georgia

$6.7 Million

$6.7 Million

“It was a remarkable turnout, and we’re very happy with the results.”

– Nancy Young, Russell Corporation

“It was a remarkable turnout, and we’re very happy with the results.”

– Nancy Young, Russell Corporation

25.48 acre manufacturing facility including office buildings and warehouse. Additional 1200 acres of adjoining land.

25.48 acre manufacturing facility including office buildings and warehouse. Additional 1200 acres of adjoining land.

Registered Bidders 231

Inquiry Calls 920

Watersedge at

Harbortown

94 Property Tours representing buyers from 8

states

208 call-ins from 21 states

94 Property Tours representing buyers from 8

states

208 call-ins from 21 states

68 Registered Bidders

from 7 states

Grande River VineyardsGrande River VineyardsGrand Junction, ColoradoGrand Junction, Colorado $ 2.8

Million$ 2.8

MillionRegistered Bidders 21Web Inquiries 3700

Registered Bidders 21Web Inquiries 3700

Hwy 101 OpportunityHwy 101 OpportunityAlamosa, CaliforniaAlamosa, California $1.5

Million$1.5

Million8 unit hotel/motel on 5±

acres

Property Tours 53

Inquiry Calls 152

Kentucky Lake Motor SpeedwayKentucky Lake Motor Speedway $1.6

Million$1.6

MillionInquiry Calls 77

Website Visits 1773

Mountain Brook OrchardsMountain Brook OrchardsSt Thomas, PennsylvaniaSt Thomas, Pennsylvania $2.4

Million$2.4

MillionRegistered Bidders 31

Inquiry Calls 201

Palm Aire Spa Resort Palm Aire Spa Resort Pompano Beach, FloridaPompano Beach, Florida

$10.9 Million

$10.9 Million

World renowned Resort with an executive 27

hole Golf Course

World renowned Resort with an executive 27

hole Golf Course

Kiawah Island Ocean CourseKiawah Island Ocean CourseKiawah Island, South CarolinaKiawah Island, South Carolina $27

Million$27

MillionHome of the 1991

Ryder Cup

Home of the 1991

Ryder Cup

Appraised for $21 million …

Sold and closed by J.P. King for 129% of appraisal

value!

Appraised for $21 million …

Sold and closed by J.P. King for 129% of appraisal

value!

South Loop WestHouston, Texas $1.6

Million“The professionalism with which the auction was handled and the caliber of people who were involved truly reflected the expertise of your firm.” - Dennis Lutz, Vice President, Source One Mortgage Co.

$855,948.50

$855,948.50

Talladega Development LandTalladega, Alabama

Registered Bidders 18

Jones EstatesJones Estates

Selma, AlabamaSelma, Alabama

$1.8 Million

$1.8 Million

Registered Bidders 56

Web Inquiries 3059

Registered Bidders 56

Web Inquiries 3059

$2.75 Million

$2.75 Million

Plum Creek DevelopmentRapid City, South Dakota

Pomona Freeway OpportunityPomona Freeway OpportunityLos Angeles, CaliforniaLos Angeles, California

$2.7 Million

$2.7 Million

“We were very happy with the outcome. I was especially pleased with the operations of J.P. King - not only in managing the auction but in promoting the property.”

– Syndey BartonSouth El Monte Associates LP

“We were very happy with the outcome. I was especially pleased with the operations of J.P. King - not only in managing the auction but in promoting the property.”

– Syndey BartonSouth El Monte Associates LP

Registered Bidders 14

Inquiry Calls 176

Wachovia BankCorporate Asset Division

Bank branches from SouthTrust

mergerOver $40,000,000

Gulf County Land OpportunityGulf County, Florida $5.5

million$5.5

millionRegistered Bidders 26States Responding 12

El Paso WarehouseEl Paso WarehouseAnthony, TexasAnthony, Texas $2.5

MillionStates Responding 16

Registered Bidders 9

Vermont National BankVermont National BankVermont and New HampshireVermont and New Hampshire

$5.9 Million

$5.9 Million80 Commercial,

Investor & Residential Properties

590 Registered Bidders from 11

states, Canada and Switzerland

Sportsman Golf ResortSportsman Golf ResortPerdido, FloridaPerdido, Florida $2.4

Million$2.4

MillionProperty Information 126

Web Site Visits 2,516

Alabama, North Carolina, Georgia and Florida

Russell Corporation

“It was a remarkable turnout, and we’re very happy with the results ”

– Nancy Young, Russell Corporation

“The property was sensitive to the adjacent land owners that did not want to see the property developed or environmentally impacted.”

“The end result was a successful auction, and all sales closed within 30 days with no strings attached.”

– Paul Porter, Russell Corporation$6,800,000$6,800,000

$3,000,000$3,000,000

Westport PropertiesMontgomery, Alabama

Online PIP Views 155

Registered Bidders 23

$2.8 million

Farmers & Merchants Farmers & Merchants Gulf Shores, AlabamaGulf Shores, Alabama

Over 50 Commercial &

Residential properties and

1000 acres

Over 50 Commercial &

Residential properties and

1000 acres

Bank Liquidation Sale

Bank Liquidation Sale

Dadeville, AlabamaDadeville, Alabama

StillWaters DevelopmentStillWaters Development $15.6

Million$15.6

Million

Sold for $3 million over asking price

Visits to Web Page 11,108

Registered Bidders 280

FloridaFleet Finance

$5.7 Million

$5.7 MillionOver 100 Commercial and

Residential properties

throughout Florida

Over 100 Commercial and

Residential properties

throughout Florida

First Union BankGeorgia

Over 40 Commercial &

Residential Properties

$4.2 Million

$4.2 Million

Singer Island CondominiumPalm Beach, FL $5 MillionRegistered Bidders

9 Web Inquiries 6294

South Star Fuel CenterSouth Star Fuel CenterBirmingham, AlabamaBirmingham, Alabama

$1.8 Million

$1.8 Million

Registered Bidders 13

Web Site Visits 893

Calumet Farm

Lexington, Kentucky $19.9 Million

Ocala, FloridaOcala, Florida

Silverleaf FarmSilverleaf Farm$5 Million

“Your expertise in advertising & production of a magnificent brochure certainly helped to generate interest surrounding our auction,”

- David W. Hutson, seller

“Your expertise in advertising & production of a magnificent brochure certainly helped to generate interest surrounding our auction,”

- David W. Hutson, seller

Registered Bidders 22Inquiries 316

AlDabbagh RanchMurrieta, CAMurrieta, CA $7.7

Million$7.7

Million

“J. P. King’s long track record was a major factor in my decision, which turned out to be the right one. I am very pleased to recommend J. P. King to other sellers.”

~ Sam AlDabbagh, Seller

Registered Bidders 9Property Tours 38

Prior to Preparing a Marketing Campaign

Research the Market and Available Media

Study Demographics of Previous Buyers

Study the Buyer Profile of Previous Buyers

Target a Strong Campaign to Known Commodities

Take the information and prepare a well-thought campaign to accomplish your goals

Prior to Preparing a Marketing Campaign

Research the Market and Available Media

Study Demographics of Previous Buyers

Study the Buyer Profile of Previous Buyers

Target a Strong Campaign to Known Commodities

Take the information and prepare a well-thought campaign to accomplish your goals

Success from Market KnowledgeSuccess from Market Knowledge

How the Auction Works

• Multifaceted Marketing Campaign

• Targeting End Users

• Highly Competitive Bidding Event

• Most Result-Oriented Sales Program

“The auction process accomplished our goals for us. We were able to maximize on the time value of money now…We wouldn’t hesitate to use a J P King auction again.” - Daniel O’Donnell

The philosophy behind asuccessful marketing program

The philosophy behind asuccessful marketing program

Exposure

Concentrated Magazine & Newspaper Advertising

Direct Mail Campaign

Internet Promotion

Outbound Telemarketing Plan

Web Media Placement & Public Relations

Signage, Billboard & Banners

Concentrated Magazine & Newspaper Advertising

Direct Mail Campaign

Internet Promotion

Outbound Telemarketing Plan

Web Media Placement & Public Relations

Signage, Billboard & Banners

ExposureExposure

A specific, varied, Commercial Media Campaign – targeted to end users

Newspapers such as the:

Wall Street Journal Florida Papers

Business Journals

A specific, varied, Commercial Media Campaign – targeted to end users

Newspapers such as the:

Wall Street Journal Florida Papers

Business Journals

ExposureExposure

ExposureExposure Trade & Business PublicationsTrade & Business Publications

Auction Brochures

10,000-15,000 High Quality,

4 -6 panel, color brochures

will be designed highlighting the opportunity and the ownership benefits

Exposure

An extensive direct mail campaign of brochures shall be sent to targeted buyer profiles:

• TBD•Area Brokers and Realtors• YOUR former Prospects•Select buyers from J P King’s database

Direct Mail CampaignExposure

ExposureExposure

Internet PromotionInternet Promotion

30,000- 40,000 unique visitors per month Links, ads, and banners on targeted sites Paid Search- Aggressive Google ad word campaign Organic Search- Highly optimized to consistently

rank in the top 4 results for the most popular property word searches

Email contact campaign including: enewsletter to 100,000 opt-in users from southcarolinagolf.com, eflyer blast to all area real estate professionals, enewsletter to condo.com subscribers

30,000- 40,000 unique visitors per month Links, ads, and banners on targeted sites Paid Search- Aggressive Google ad word campaign Organic Search- Highly optimized to consistently

rank in the top 4 results for the most popular property word searches

Email contact campaign including: enewsletter to 100,000 opt-in users from southcarolinagolf.com, eflyer blast to all area real estate professionals, enewsletter to condo.com subscribers

ExposureExposure

Internet PromotionInternet Promotion

realestatejournal.com – tile adLoopnet –featured adwashingtonpost.comviviun.comjpking.com

Etc, Etc, Etc……………………….   

realestatejournal.com – tile adLoopnet –featured adwashingtonpost.comviviun.comjpking.com

Etc, Etc, Etc……………………….   

Internet Campaign Including Following Sites

On Line BiddingBidders may participate in the auctionremotely from anywhere in the world

Engages area visitors unable to attend

Bidders compete live – real time

Attracts distant bidders not-inclined to attend

Outbound Telemarketing

CampaignAn aggressive outbound campaign to targeted buyers, including your prospect list, area real estate brokers and select portions of J P King’s prospect list

Exposure

ExposureExposure Web Media Placement & Public

RelationsWeb Media Placement & Public Relations News releases generate coverage in local, regional and

national traditional and electronic media to promote the auction, as well as positioning the auction

Auctions are frequently covered by such media as PR News Wire, NPR, CNBC, WSJ, New York Times, Forbes, Crain’s, Chicago Tribune and Bloombergs

News releases generate coverage in local, regional and national traditional and electronic media to promote the auction, as well as positioning the auction

Auctions are frequently covered by such media as PR News Wire, NPR, CNBC, WSJ, New York Times, Forbes, Crain’s, Chicago Tribune and Bloombergs

ExposureExposure Professional Photography &

Virtual TourProfessional Photography & Virtual Tour

To Showcase the property in the very best light, professional photographs will be taken & utilized in all media

Additionally, Virtual Tours will be available on-line to present the property to individuals who may be interested in purchasing long distance and will be an effective reminder to those who have previewed the property prior to the auction but are unable to attend on auction day and will participate remotely

On-line bidding will be available – an important aspect in a campaign dealing with 2nd home / resort buyers – Bidders will be able to participate in real time bidding from anywhere in the world

To Showcase the property in the very best light, professional photographs will be taken & utilized in all media

Additionally, Virtual Tours will be available on-line to present the property to individuals who may be interested in purchasing long distance and will be an effective reminder to those who have previewed the property prior to the auction but are unable to attend on auction day and will participate remotely

On-line bidding will be available – an important aspect in a campaign dealing with 2nd home / resort buyers – Bidders will be able to participate in real time bidding from anywhere in the world

Signs and Billboards

Attractive Signs will be strategically placed on the Property.

A Billboard may be secured.

Exposure

Educate

Project Management

Auction Information

Extensive Buyer Due Diligence

Bidder/Broker Seminars

Property Tours

Project Management

Auction Information

Extensive Buyer Due Diligence

Bidder/Broker Seminars

Property Tours

EducationEducation

Auction Information Receives all incoming calls and enters into database

Follows up on all inquiries regarding the properties Initiates an aggressive outbound campaign to previous bidders/buyers as well as brokers

Education

EducationEducation

Property Information PackageProperty Information Package The PIP is one of the most important elements of all our

educational efforts Provides and documents property-specific due diligence

information Online with customer tracking and hard copy Serves to make buyers comfortable with the property and

helps ensure a smooth closing

The PIP is one of the most important elements of all our educational efforts

Provides and documents property-specific due diligence information

Online with customer tracking and hard copy Serves to make buyers comfortable with the property and

helps ensure a smooth closing

Bidder & Broker On- Line Seminars

Bidding & Registration Procedures Educate on ownership structure Sample mock auctionClosing proceedings

EducationEducation

Pre-Sale InspectionPre-Sale Inspection

Experienced site directors will work onsite during the scheduled preview prior to the event to educate buyers on the ownership and location benefits.

Experienced site directors will work onsite during the scheduled preview prior to the event to educate buyers on the ownership and location benefits.

Closure

Broker Incentive Program

Buyer’s Premium Funds auction company and Buyer Broker commissions

On Line Bidding

A program designed for bidders who are unable to attend to participate … increasing active bidder pool

Broker Incentive Program

Buyer’s Premium Funds auction company and Buyer Broker commissions

On Line Bidding

A program designed for bidders who are unable to attend to participate … increasing active bidder pool

ClosureClosure

Buyer Brokers Program Heightens broker awareness of the opportunity presented by

the auction Encourages broker participation in the events to raise auction prices

Closure

J. P. King Auction Company

has been named the exclusive

auctioneer for

Who’s Who in Luxury Real Estate®,

whose member brokers represent more

than 100,000 premier agents throughout

the United States and abroad.

“As the exclusive auctioneer for Who’s Who, J. P. King has repeatedly demonstrated the value of the auction method and their commitment to the highest level of service.”

~Brian Losh CEO at Who’s Who in Luxury Real Estate®

The winning bidder must deposit a 10% down payment on the day of the auction

Buyers sign a contingency-free agreement

Buyers close within 30 days

The winning bidder must deposit a 10% down payment on the day of the auction

Buyers sign a contingency-free agreement

Buyers close within 30 days

Terms of the Sale

AUCTION DAY