Advanced Auction Workshop
• Meeting Objectives
– Learn How to Fully Leverage Auctions in Your Market
– Increase Successful Auctions
• Increase Listings
• Increase Sales
• How to Win Every Deal
– Maximize Understanding of United Country Tools
– Learn Best Practice Processes
Marketing and Promotion
The Integrated Approach
Agenda
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Auction Marketing Philosophy
Qualification
Project Creative Brief
Marketing Plan Development
Marketing Plan Tactics
– Various Tactics
– Multi-Parcel
– Multi-Property
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Marketing Plan Execution
Tracking Results
Case Studies
Group Exercise
Auction Marketing Philosophy
• Successful Marketing is the key determinant of
auction success
• Auction marketing is accelerated marketing
• Property qualification is the critical first step
– Be willing to turn down non-qualifying auction opportunities
• Establishing a process ensures consistent
success and increases efficiency
Property Qualification
Step 1. Determine Sellers Fit with the Auction Method
Seller Criteria
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Number of Owners
Ownership Structure
Length of Ownership
How was it Acquired
Capable of Adequate Up-front Marketing Funds
Seller Proximity to the Property
Relationship with Neighboring Property Owners
Relationship with Local Community
Seller’s Past Auction Experience
Property History of Sales Attempts
 Approve Property Salability
Property Qualification
Step 2. Assess Sellers Motivation
Seller Motivation Criteria
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Why Are they Selling Now?
Do They Need to Sell by A Certain Date?
How Long has the Property been on the Market?
Establish Accurate Monthly Holding / Carrying Costs
Identify any Monthly or Annual Maintenance Fees
Determine How Long they can Afford Holding Costs
Determine Post Sale Plans
Seller Current Financial State
Attitude to Selling Absolute
Establish Sellers Lowest Acceptable Price
Sellers Ability to Pay Off Outstanding Mortgage if Necessary
 Confirm Proper Seller Motivation
Property Qualification
Step 3. Understand Property Relevant Sales History
Sale History
 Currently Listed?
 If so, How Long has it Been Listed
 Current Broker
 Number, Timing and Value of Any Offers
 Current Signage
 All Previous Marketing Executed
Property Qualification
Step 4. Establish Acceptable Price Expectations
Pricing Criteria
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Current Seller Price Expectation
Seller Equity Position
Identify All Loans on the Property and Title Possession
Ensure Proper Pricing Based on Current Condition and Market Analysis
Attain Current Appraisals is Possible (past 24 months)
Determine Tax Assessed Value
 Gain Pricing Strategy Agreement with Seller
Property Qualification
Step 5. Confirm Detailed Property Information
Final Criteria
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Current Condition
Utilities Status
Current Local Market Real Estate Health
Legal Considerations: Hazardous Materials, Easements, Access,
Economic Obsolescence, Zoning, Deed Restrictions, Historical
Restrictions, Other)
 Assess Potential Alternative Uses
 Annual Property Taxes
 Agreement to Convert to Traditional Listing Post Auction
 No Major New Information Upon Detailed Analysis
Property Dis-Qualification
• Turn Down Disqualified Properties
General Disqualifying Factors
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Unrealistic Pricing Expectations
Long Listing without Price Reductions
Overbearing / Hard to Work With Seller
Unwillingness to Give Control to the Auctioneer
Multiple Past Failed Auction Attempts
Seller Prediction of Failure
Unwillingness to Provide Adequate Upfront Marketing Funds
Seller Unwilling to Fix Bad Condition Issues
Determining Seller has not Disclosed Significant Property Information
 Other
Project Creative Brief
• The Project Creative Brief is the foundation of
any superior auction project
• It clearly explains the why, what, who, where,
when and how
• It ensures the auction team is focused,
coordinated and efficient
• It reduces required communication and errors
• Projects should not begin without a brief
Project Creative Brief Elements
Background
• Any information giving relevant history of the project.
• Any important property, category, competitive, company information
that provides insight to the opportunity or why we are doing the
project.
• Who is the client, special considerations or information team
members need to be aware of, history of the property.
Example:
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Property name is Marshy Dream
Privately owned by one family since 1823, the family does not want their
name disclosed in any marketing
One of the best Duck Hunting properties in Missouri
Ducks Unlimited will assist in marketing this property
This is a 640 acre tract with 500 acres flooded.
ABC Realty has had it listed traditionally for 2 years and now the seller
wants to sell it by September 20th to pay estate taxes due October 30th.
Project Creative Brief Elements
Objectives
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What are you trying to achieve. The main result you want, as exact as
possible.
Specific, measurable, key date
Include number of buyers, minimum acceptable price, timing
Example:
• Sell Marsh Dream for a minimum of $500,000 by September 20th.
Strategies
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How will you achieve your objective.
What will you use to achieve your objective. General marketing techniques,
team details, unique approaches
Example:
• Position property as the Premier Duck Hunting escape in MO.
• Utilize direct marketing , TV advertising and print
• Partner with DU
• Employ EMS
Project Creative Brief Elements
Assignment
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What strategic input is required.
– Examples: Brainstorming, property naming, marketing plan development
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What is the output / marketing materials you want.
– Examples: TV Ad, Billboard, signage, brochure, HTML email, website
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What physical pieces are needed.
Target
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Primary: Describe in as much detail as possible the most likely buyer of the
property.
Secondary: Describe the next most likely buyer.
Tertiary:
Use either past history of similar properties or your / your teams best
judgment
Example
• Primary: Male, 50+, Income over $100,000, Urban, Corporate Executive,
Reads newspapers, from California, Oregon or Nevada, active outdoor
enthusiast
• Secondary: Male 50+, income over $70,000, personal wealth of over
$1,000,000, enjoys hunting and / or fishing, reads outdoor magazines, owns
a truck
Project Creative Brief Elements
Key Consumer Takeaway
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One sentence, as short as possible, as to what a consumer will say after
being exposed to he project / marketing materials.
Example:
• “This is the premier duck hunting property in Missouri”
Prioritized Communication Objectives
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Prioritize all key communication points that should be made.
Typically try to keep these around 5-10 key points.
Attach specific copy required in a separate document.
Examples:
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Premier Duck Hunting Property
Auction
September 20th, 6pm
Location and directions
650 acres
Thousands of ducks
Heated blinds
4,000 Square foot luxury lodge
Sponsored by Ducks Unlimited
Project Creative Brief Elements
Creative Considerations
• What do you want the creative artists to consider when
designing your marketing materials?
• Logos required, color suggestions, imagery suggestion,
campaign ideas, imagery that the project creative needs
to integrate with.
• These are not necessarily mandates, just creative
considerations for designers.
Examples:
• Use our Office logo and the DU logo on all pieces
• Consider aerial photos
• Multiple property photos available
• Consider showing hunters in the blinds and large quantities of ducks
Project Creative Brief Elements
Timing
• Creative Brief to Marketing Team
• 1st Round Creative Review:
• 2nd Round Creative Review:
• Final Approval:
• Art Available to Supplier:
• Finished Product Delivered:
• Marketing Materials Arrive at Consumers
• Add any other key dates you need.
• Spending time here, in as much detail as possible will
enable you to fine tune future project timing estimates
and improve your process and future efficiencies.
Project Creative Brief Elements
Quantity
• How many of each item will you need.
Budget
• Total Costs itemized as much as possible.
Measurement
• How will you measure the results.
You may want to add other categories, but keep it brief.
Found on Intranet
{Project Name} Creative Brief
Date:
Project Lead:
Background
Objectives
Strategies
Assignment
Target
Key Consumer Takeaway
Prioritized Communication Objectives
Creative Considerations
Timing
Quantity
Budget
Measurement
Marketing Plan Development
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The most important activity in determining the success of the
auction
Steps to Creating a Marketing Plan
1. Start by reviewing the Project Creative Brief with the marketing
person or team
2. Brainstorm on ways to reach each target
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Brainstorm all ideas
Challenge the team to come up with new, innovative ideas – no bad
ideas at this point
Estimate number of target buyers reached by each tactic
Obtain costs of each marketing tactic
Prioritize marketing tactics by effectiveness in reaching the target
and depth of message
Establish a marketing budget
Allocate the budget to the highest priority marketing tactics from
step 5, test new ideas.
Marketing Tactics
• Marketing Plan Tactics
– Brochures
– Signage
– Direct Mail
• Automated Postcards
• Confidentials
• Purchased Buyer Lists
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Email Advertising
Telemarketing
Internet Advertising
TV / Radio Advertising
Outdoor Advertising
Custom Websites
Print
Co-op and Strategic Partner Marketing
On-line Bidding
Public Relations
Event Marketing
Marketing Tactics Continued
Multi-Parcel
• Maximize Realized Price by Offering Larger Tracts of
Land in Whole or in Parts
• Must Communicate Concept to Potential Sellers and
Buyers
• Utilize Existing Multi-Bidding Software Packages (ex;
Auction Flex, Multi-PAR, JBS)
• Increase Buyer Pool due to Affordability of Smaller
Tracts, Removing Undesired Improvements and
Creation of Premium Tracts
• Advertise All Tracts Being Offered
• Consider a Pre-Auction Seminar to Teach Process
Marketing Tactics Continued
Multi-Property
• Efficiencies in Marketing can be Realized by
Marketing More Than One Property at Once
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Shared Marketing Budgets
Shared Event Costs
Shared Contracting Expenses
Immediate Acceptance Approvals
• A Formal Process has been Established and is
Available from the Home Office
Marketing Plan Execution
• Timelines
– Be Realistic
– Excel or Microsoft Project
• Assign Responsibilities
• Have a meeting at a minimum weekly to review
the timeline status
• Over communicate with team, seller and buyers
on a regular basis
Peak Performance Timeline Example
Tracking Results
• Marketing investments must be measured for
effectiveness
• Marketing tactics work differently from auction to auction.
• Continual learning and measurement allows for on-going
improvement in effectiveness and efficiency.
• Tracking success criteria should be established before
the execution (see Project Creative Brief).
Tracking Process
• Ask All Inquires Where They Learned About the Auction
– Keep a Running Count of This Information
– Establish a Cost per Lead After All Inquires are Finished
• Survey Final Buyers in Depth About All Marketing They
Received
– Especially Determine the Pieces That Convinced Them to
Inquire
– Gain Their Feedback on All Pieces
• Provide Feedback to the Seller and Marketing Team
Case Studies
Northwoods Resort and
Conference Center
Big Bear, California
Background and Overview
• In receivership
• Receiver had been operating for 2 years in
order to bring to profit and cash flow back
• Had been marketed by 4 commercial firms
for 6 months
• Had multiple offers around $7 million
• One offer at $8 million (stalking horse bid)
Problems
• $8 million bid had 48 hours to get deposit
in
• Receiver went to judge after 24 hours and
judge approved the sale subject to a 21
day over bid procedure
• Buyer did not make deposit
• They now have no stalking horse bid
• Facing a train wreck with the judge
Analysis
• NOI shows the property is only worth
about $7 million
• Determined that we would have to find an
entrepreneur instead of a hotel chain
owner in order to exceed the $8 million the
judge was expecting
• Only had 21 days to pull this off
Structure of the deal
• Seller to pay all marketing costs up front
• Hire us as a consultant $40,000 flat fee
regardless if the property sold or not
• They wanted the property sold but at a
minimum they wanted new players at the
table so that in the event that it did not sell,
they saved face with the judge
Marketing
Results
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Over 300 inquires in less than 20 days
8 bidders at the auction
Only one of them had made an offer prior
4 of 8 were entrepreneurial type buyers
Hotel investors fell out at $8 million
Buyer was a group of 5 partners
Final Price ???
• $10,265,000
Montana Hideaway
Trout Creek, Montana
Background and Overview
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Seller built to own not to sell
Lost his money in the tech stock crash
Owed $1 million and needed out
Been on market for 2 years
Listed @ $3m reduced to $2.5m and
finally to $2m by a very good broker in the
area (cousin)
• Very difficult sale* Value placed @ $1.5m
Analysis
• Remote, Comm airport over 2 hrs away,
Wal-Mart was 90 miles away and no skiing
• Not known for high end homes
• We felt it would be a second home
• Because commercial airport was so far
away, thought buyer would own a plane
• Most likely buyer would come from WA,
OR, CA, WI, MI or the Southeast
Marketing
Results
• 5 Registered bidders
• 2 of them owned their own plane and were
found with direct mail campaign
• Preemptive bid placed @ $1,627,500
• Sold to CEO of Broadcom a $ multi-billion
tech company
Group Exercise
• Varied Property Samples
• Identify Target
• Brainstorm Marketing Tactics