Government Auction Basics
State, local and federal governments hold auctions every now and then on personal property that is confiscated, forfeited or seized and on foreclosed property. When one talks about personal property they are referring to property that is owned. The property can be anything from jewelry to office furniture to automobiles to yachts. Foreclosed property is property that will be sold to the public because of the owner's default on paying loans secured through a government or other agency. Real estate, however, is considered real property and as such is sold in as is condition in a government auction.
The confiscated, seized and forfeited property is the property that comes into the possession of Federal or other jurisdictional law enforcement agencies. Sometimes, these seized properties may be returned to the owner if the owner reconciles the reasons why the property was confiscated in the first place. If such property is not returned, then it is auctioned off in as is condition to the public at a government auction.
The government also auctions excess property, such as property that a government agency no longer needs. This property is passed on to the Federal Government if it is not transferred to state or local governments. This property would then be sold to the public at a government auction. Personal property of all types, automobiles and boats that are lost or abandoned by the public are considered unclaimed. This property is auctioned off as well, mainly by the U.S. Postal Service as they receive lots of unclaimed items.
One of the main types of property that the government auctions off frequently is repossessed cars and boats. Repossessed car and boat auctions represent a large majority of government auctions typically because these items are high priced, have large loan balances and may have high monthly payments. In addition, a car or boat may be repossessed or seized due to the arrest of the owner.
All property up for government auction is sold through various sales methods. One of these methods is the sealed bid. The sealed bid is where you are doffed an invitation to bid on a specific item. The bid sheet has all the information about the property to be auctioned off. The bid sheet also includes all the terms and conditions for the sale of the property. If interested, you have to submit your bid to the government agency through the mail. Then on the bid opening date, all received bids are opened and the highest bidder is awarded the property.
In a public government auction, the federal agency gives all prospective buyers a description of all property to be auctioned with the necessary bidding instructions. Each item is auctioned off with the highest bidder getting the property. Unlike the sealed bid, you have to be present at the public government auction.
With an internet based government auction, you place your bid at the web site where you can bid on single or multiple items within a fixed timeframe.
The sealed bidder's auction is a specific type of government auction that uses a combination of a sealed bid and a public auction method. Here, bidders present their sealed bids to the auctioneer and only the highest sealed bids can take part in the auction that starts with the highest sealed bid.
With a spot bid auction, a bidder has to attend the sale where items are individually placed up for auction. Here, the bid is placed in written form that gives only one opportunity to the bidder for the property. The person giving the highest spot bid is announced publicly as the winning bidder.
Sometimes local, state and federal government agencies will have fixed price sales. In a fixed price sale, the merchandise is marked with a predetermined fixed price. The public has to buy the item for the price marked on the item. Here, the first buyers present have the best chance to buy the item.