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Presented by:

Jeff Seal
AVP – Client Management
Auction.com
1 Mauchly, Irvine, CA 92618
Direct: (949) 413-9807
Email: Jseal@auction.com
COMPANY OVERVIEW
Founded in 1989, Auction.com is the largest auctioneer of real estate
in the world. During the past 4 years, Auction.com has sold more
than $12 billion of residential and commercial real estate on behalf of
the nation’s largest lenders, special servicers, prestigious developers
and private individuals. Between its 65,000 square foot company-
owned office in Irvine, CA and its Dallas and NY offices, Auction.com
employs 567 people across the country specializing in all areas of
real estate transactions.

Having spent more than $5 million and 250,000 man hours
developing its state of the art website and online auction platform,
Auction.com is today the undisputed leader of online real estate
sales in the United States. Auction.com has over 1 million unique
visitors per month and a database of over 4 million people. This
combined with the fact that it spends in excess of $35 million a year
in marketing, means that every property that is listed on the website
receives the maximum amount of exposure to the relevant market.

As a result of continued downward pressure on prices, the US
residential market has been markedly tilted in favor of buyers.
Through the use of its sustained and comprehensive marketing
campaigns combined with the intense excitement and
competitiveness of an auction forum, Auction.com has managed to
rebalance the scales of demand and supply. In the same manner
that the distinguished auction firms of Sotheby’s and Christie’s have
successfully created a market for luxury art, wine and jewelry by
allowing bidders to compete in an open and transparent exchange ,
so too has Auction.com established itself as the premier platform for
the sale of luxury real estate.


                                                                          2
CURRENT CLIENTS – 92 INSTITUTIONAL CLIENTS CURRENTLY
SELL 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’
  discretion


Auctions 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 CLOSE

45-40 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 at
Agreement       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 to
Event 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                                                            Property
Event 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
PLATFORM
Our online platform offers sellers and
buyers 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 ON
AUCTION.COM/LUXURY WORK?




                               10

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Luxury presentation jeff seal

  • 1. Presented by: Jeff Seal AVP – Client Management Auction.com 1 Mauchly, Irvine, CA 92618 Direct: (949) 413-9807 Email: Jseal@auction.com
  • 2. COMPANY OVERVIEW Founded in 1989, Auction.com is the largest auctioneer of real estate in the world. During the past 4 years, Auction.com has sold more than $12 billion of residential and commercial real estate on behalf of the nation’s largest lenders, special servicers, prestigious developers and private individuals. Between its 65,000 square foot company- owned office in Irvine, CA and its Dallas and NY offices, Auction.com employs 567 people across the country specializing in all areas of real estate transactions. Having spent more than $5 million and 250,000 man hours developing its state of the art website and online auction platform, Auction.com is today the undisputed leader of online real estate sales in the United States. Auction.com has over 1 million unique visitors per month and a database of over 4 million people. This combined with the fact that it spends in excess of $35 million a year in marketing, means that every property that is listed on the website receives the maximum amount of exposure to the relevant market. As a result of continued downward pressure on prices, the US residential market has been markedly tilted in favor of buyers. Through the use of its sustained and comprehensive marketing campaigns combined with the intense excitement and competitiveness of an auction forum, Auction.com has managed to rebalance the scales of demand and supply. In the same manner that the distinguished auction firms of Sotheby’s and Christie’s have successfully created a market for luxury art, wine and jewelry by allowing bidders to compete in an open and transparent exchange , so too has Auction.com established itself as the premier platform for the sale of luxury real estate. 2
  • 3. CURRENT CLIENTS – 92 INSTITUTIONAL CLIENTS CURRENTLY SELL ASSETS ON AUCTION.COM 3
  • 4. 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
  • 5. 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’ discretion Auctions Pose No Risk or Cost to Seller 5
  • 6. 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
  • 7. TIMELINE TO MARKET AND CLOSE 45-40 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 at Agreement 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
  • 8. 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 to Event 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 Property Event 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
  • 9. PLATFORM Our online platform offers sellers and buyers 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
  • 10. HOW DOES BUYING YOUR HOME ON AUCTION.COM/LUXURY WORK? 10