Broker Partner Guide

The World Leader

Sotheby’s Concierge Auctions is the largest luxury real estate auction marketplace in the world with 90%+ market share and one of the most comprehensive databases of high-net-worth property connoisseurs on the planet.

From Outsiders to Insiders to Innovators to Leaders

Our origin story began when CEO Laura Brady met President Chad Roffers back in 2004. Building on Chad’s experience in Silicon Valley and Laura’s time in corporate retail at Neiman Marcus, as a top-producing luxury real estate agent and broker, they came together to create a more efficient method for buying and selling the world’s finest homes. In November 2021, Concierge Auctions was acquired by Sotheby’s, the world’s premier destination for fine art and luxury goods, and Anywhere Real Estate Inc (NYSE: HOUS), the largest full-service residential real estate services company in the United States, holding a joint 80 percent ownership stake. Now Sotheby’s Concierge Auctions, the firm continues to operate independently, partnering with real estate agents affiliated with many of the industry’s leading brokerages to host luxury auctions for clients.

We’re Here to Help

We understand the traditional real estate model has limitations. And, we’re here to help. We match sellers of one-ofa-kind properties with the world’s most capable buyers via a state-of-the-art digital marketing, property preview, and bidding platform. Every single day.

Our Team

We have assembled specialists in project management, sales, marketing, public relations, finance, legal, infrastructure, and technology. In cooperation with your listing agent, an entire team is engaged on your property. Comprised of professionals based in seven countries, including the United States, Mexico, the UK, Spain, and Switzerland, Canada, and Italy, our platform and team are focused on reaching more buyers in more places and are a true competitive advantage.

What’s in it For You?

Our award-winning platform allows your clients the control to sell their luxury property on a set timeline. Using a combination of targeted marketing strategies and sales techniques, the exposure period is typically 4–5 weeks.

• You keep your listing

• Earn your commission

• You and your client are in control of sale timeline

• Targeted exposure to our global database of 825,000+

• New buyer leads

Awards and Accolades

•

“Fastest Growing Company” – 6 Years in a Row – Inc. Magazine

• CEO Laura Brady and President Chad Roffers awarded “Most Influential Leaders in Real Estate” – Inman News

• “Best Overall Marketing” – Who’s Who In Luxury Real Estate

• 75+ Marketing Awards, including “Best In Show” – USA Today and National Auctioneers Association and 38 “Telly Awards” for film production

• No. 38 on the 2018 Entrepreneur 360TM

• Ranked on the Financial Times Americas’ Fastest Growing Companies 2020 list

Global Networks and Alliances

We are an exclusive or preferred auction provider and top choice to the following global and industry-leading broker networks.

• Sotheby’s International Realty

• Leverage Global Partners

• Berkshire Hathaway HomeServices

• Who’s Who in Luxury Real Estate

• Engel & Völkers

• Naef Prestige Knight Frank

Your Team

AUCTION DIRECTOR

You’ve hired an entire team, and that team begins with your Auction Director. From the execution of your Auction Agreement forward, your Auction Director will be your primary point of contact throughout the auction cycle and will be in consistent communication with your entire auction team, including your Project Manager, listing agent, marketing, compliance, client services, and the closing professionals. They will be laser-focused on ensuring the successful sale of your property, communicating while also keeping you up to date on key milestones along the way.

PROJECT MANAGER

Your quarterback on the ground, your Project Manager’s responsibility is to identify and register bidders to purchase your property. The Project Manager will arrive three to four weeks prior to the specific auction date and will be living in the market, arranging showings, managing leads, networking with brokers and potential buyers, and working throughout the exposure period to engage the market.

In the end, together we will have identified 3–7 qualified bidders who are ready to compete to own your listing, resulting in the highest sale price for our client.

Getting to Work

ASSETS

To begin, your dedicated Marketing Manager (MM) will request any existing information on the property, including:

• High-resolution property photos and lifestyle images of neighborhood/area.

• All available documents, including floor plans, inspections, appraisals, spec lists, state-required diligence documents, etc.

• Listing agent and brokerage firm info as filed with the state, including name, license number, address, and any additional licensure information.

• ‘Say cheese’ — Your headshot for use on our website.

MESSAGING APPROVAL

Your MM will provide you with new messaging for use in print and online. This will be sent to you for approval prior to use.

THE LAUNCH CALL

During the call with everyone involved—you, the client, and the Sotheby’s Concierge Auctions team—will focus on preparing for the on-the-ground sales effort. An agenda will be sent prior with tasks for everyone on the call.

Auction Sale & Purchase Contract

You and the Sotheby’s Concierge Auctions counsel will work together to prepare these documents, including all necessary addenda and disclosures by launch day (when the property “goes live” on casothebys.com). The property is being sold “as-is,” without contingencies. Therefore, the Auction Sale and Purchase Contract is the only contract that will now be considered by the seller. This will be discussed in further detail on the Launch Call.

Exposure & Outreach

You will work with your sales team to compile a list of top area agents to contact, offices to visit, and sales meetings to attend, as well as any other events that will help to expose the opportunity to the local market.

How to Help Your PM:

FOLLOW-UP ON LEADS DAILY

You’ll be notified of all lead activity. You and your PM will decide who is the best choice to contact a new lead.

BROKERAGE COMMUNITY AND OUTREACH

As the local market expert, we’ll rely on you to ensure we are reaching the area’s top producers and to make key introductions for property presentations. Typically, we see 1/3 of bidders generated from the local market and agent outreach.

LOCAL MARKET INSIGHT

Prepare a list of existing and sold comparables for the PM. It’s important to know what we’re selling against.

UNDERSTAND THE MESSAGE

It is crucial that you and your PM are relaying the same message in a consistent manner. He or she will work with you on these points.

YOUR ROLE AS PROPERTY EXPERT

You are the property expert. The PM is the auction expert. The two of you are a team and will be communicating daily, so all information will be shared.

BUILD A FIELD OF BIDDERS

Our goal is to build a field of 3–7 registered bidders for every auction. Bidders will come from a mix of: the Sotheby’s Concierge Auctions database, other brokers/agents, marketing and sales efforts, and you. For a successful auction, it is important to encourage bidders at all price points. Your PM will go over the concept of “building the ladder” in more detail.

The Auction

Bidders in our auctions can participate from anywhere in the world and often do.

In a digital auction, bidders can participate via the Sotheby’s Concierge Auctions online marketplace, casothebys.com. Each bidder will also have access to a dedicated Bidder Representative on a private phone line in case they need any help or have questions along the way. Bidding for our properties is typically open for approximately 3–5 days.

Questions You May Be Asked:

WHAT TYPE OF AUCTIONS DOES SOTHEBY’S CONCIERGE AUCTIONS OFFER?

There are two typical auction formats. With Reserve and No Reserve. Our most powerful format is the No Reserve auction, which means there is no minimum sale price, and the highest bidder will own the property. A Reserve auction means that the bid must meet or exceed a pre-determined Reserve amount before the property can be sold. Once the bidding has reached or surpassed this amount, the property sells to the highest bidder.

WHAT QUALIFICATIONS MUST A BIDDER MEET TO PARTICIPATE?

Prior to auction, each bidder is required to do three things:

• Sign the Auction Terms & Conditions for the sale. This means they agree to the terms of the auction as an as-is, no-contingencies sale.

• Wire a Bidder Deposit into an escrow account. The amount varies per property but is typically $100,000. This deposit is refunded to all nonwinning bidders within 3 business days.

• Provide a bank letter to Sotheby’s Concierge Auctions stating proof of funds and the capability to close on the property in approximately 1–4 weeks.

WHAT INCENTIVES ARE OFFERED FOR BIDDERS?

For No Reserve auctions, we offer a Starting Bid Incentive, a credit to reduce the Buyer’s Premium by 50% related to the Starting Bid Amount, encouraging buyers to submit a starting bid prior to the start of the auction.

WHAT IS A BUYER PREMIUM?

Almost every auction, regardless of what’s being sold—luxury real estate, fine art, jewelry, etc.—has a Buyer Premium (BP). We charge a 12% Buyer Premium. The BP is added to the high bid to calculate the total price.

WHAT TYPE OF DILIGENCE IS AVAILABLE TO POTENTIAL BUYERS?

A diligence package will be made available to all potential bidders. It is the bidder’s responsibility to perform any inspections he or she thinks are relevant in order to be satisfied with the condition of the property, and to review all due diligence materials provided before bidding. Each bidder assumes any and all risks associated with any such inspection.

The property is being sold in its existing “as-is, where-is, with all faults” condition, with no expressed or implied guarantees or warranties whatsoever, unless required by law. Personal on-site inspection of the property is strongly recommended. Bidders are advised to independently verify all information they deem important. If someone is interested in having an inspection done, you and your PM will work with him or her to make the property accessible.

CAN THE PURCHASE BE FINANCED?

If a potential buyer is planning on securing financing to close, we strongly suggest that they secure the loan prior to bidding, since all of our auctions are never contingent on financing. This means that if you are the successful high bidder, and are unable to procure financing or close on time, you will forfeit your deposit and be subject to any additional remedies outlined in the Auction Sale and Purchase Contract and Auction Terms and Conditions.

CAN I USE MY OWN TITLE COMPANY?

No. The Auction Terms and Conditions and Auction Sale and Purchase Contract, which are agreed to prior to the auction, will govern. Specifically, the insurable title, as prepared and offered by the indicated title/closing company, will be the standard that is agreed to and accepted by the parties involved in the transaction. However, you may still have the title commitment inspected by your counsel prior to the auction.

BIG ISLAND, HI | SOLD FOR $6.6M

WHAT ABOUT TITLE INSURANCE?

All properties are transferred to the buyer by deed, with insurable title as determined by the title/closing agent indicated on the Auction Sale and Purchase Contract.

A preliminary title commitment is prepared and available at launch. The seller warrants insurable title per the Auction Terms and Conditions. Seller will obtain the title commitment from a thirdparty title/closing firm that will be identified in the Auction Sale and Purchase Contract. At closing, the buyer shall be given insurable title as the property is transferred by a deed, clear of liens or encumbrances. All buyers are welcome to review the title policy, which will be issued by a third-party title examiner.

HOW ARE CLOSING COSTS HANDLED?

Closing costs and procedures vary from state-to-state. We strongly recommend that buyers review the Auction Sale and Purchase Contract for each specific sale. In general, the seller pays for the thirdparty title examination fee, the title search fees, the title insurance premium, half of the closing fee, and is responsible for curing any title-related defects. Buyers typically pay the revenue stamps (documentary stamps) or other taxes customarily due upon filing of the deed, as well as half of the closing fee. The current year’s real estate taxes are usually pro-rated through the day of closing. Sotheby’s Concierge Auctions charges a Buyer Premium to the buyer. Buyers may also have additional closing costs related to a loan that is secured in order to close the transaction, any inspections/appraisals ordered prior to the sale, and any survey ordered prior to the sale.

WHEN IS THE CLOSING DATE?

The closing date typically occurs within 1–4 weeks from the conclusion of the auction. Keep in mind that the Auction Sale and Purchase Contract does not contain a contingency, and is an “as-is, where-is” contract.

The date of closing the purchase of the Property between Buyer and Seller will be the “Closing Date” in the Auction Sale and Purchase Contract.

In certain cases, seller may extend the closing date pursuant to the Auction Sale and Purchase Contract or as otherwise negotiated between seller and buyer, in seller’s sole discretion.

DOES SOTHEBY’S CONCIERGE AUCTIONS TAKE ON PROPERTIES WITHOUT LISTING AGENTS?

No. Any seller who engages us to auction their property must list their property with a local real estate agent. The seller’s agent does not represent the buyer, unless and where legally allowed, said seller’s agent is allowed to function on a transactional basis and represents the buyer.

CAN BUYER’S AGENTS EARN COMMISSIONS?

Yes. Buyer’s agents must be licensed, and must register with their buyer per the Auction Terms and Conditions.

AS A BUYER’S AGENT, AM I PAID THE CO-BROKE IF I PURCHASE FOR MYSELF?

Yes, as long as you submit your Auction Terms & Conditions with your name as the representative.

Key Takeaways:

EARN YOUR COMMISSION

Born out of the luxury real estate industry, we are an additional agent tool for high-end listings. In fact, we have never auctioned a property without a listing agent.

SELL IN 30 DAYS

We add unmatched exponential reach, speed, and certainty. In short, we help sellers accomplish in as little as 30 days what can otherwise take years.

BROWSE & BID: 24/7

We know every luxury home and select only the best. One of every 20, to be exact. The result? Buyers have direct access to incredible deals on the world’s finest properties.

KEY FOR KEY®

Every business has a responsibility to make a positive impact on the world. Our Key For Key® giving model guarantees for every home we sell, we build a home for a family in need. We believe in the empowerment and financial stability that comes with homeownership and its impact for generations.

Concierge Auctions, LLC, dba Sotheby’s Concierge Auctions, is an auctioneer. Sotheby’s Concierge Auctions’ principal address is 650 Madison Avenue, New York, NY 10022, and its phone number is (212) 202-2940. If required, Sotheby’s Concierge Auctions (or its representative) is registered, licensed and/or bonded in the state where the property to be auctioned is located. Sotheby’s Concierge Auctions (in certain jurisdictions) and certain Sotheby’s Concierge Auctions subsidiaries, employees, and representatives may possess real estate broker or salesperson licenses in various jurisdictions and may, in some circumstances, perform functions that may be deemed brokerage services, neither Sotheby’s Concierge Auctions nor its agents, employees, and affiliates are acting as a broker in any capacity for any party in connection with this auction. Bidders must seek brokerage services or advice from their own real estate agents or professional advisers. Our brokerage licenses are held solely for compliance purposes to further our auctioneering services. Sotheby’s Concierge Auctions, the Listing Agent, the seller of the property and their respective agents, employees, and affiliates do not represent, warrant, or guarantee the accuracy or completeness of any information and shall have no liability for errors or omissions under any circumstances in this or any other property listings or advertising, promotional or publicity statements, and materials. This is not meant as a solicitation for listings or an offer to sell real property. Cooperating brokers are encouraged to participate as set forth in Sotheby’s Concierge Auctions bidder terms and conditions.