On Wednesday February 17 at 11am a huge online auction begins. The auction is a huge nationwide sale of merchandise that was unclaimed and/or abandoned at port sites! There are 36 different lots of goods being auctioned off and it is quite and exciting group of deals! From leather jackets, footwear, imitation jewelry, and leather sandals, to Scion hoods and trunks, gasoline drill hammers, aircraft parts and ball pen ink, there is quite an eclectic group of items up for sale! Some neat highlights from the auction are a really nice looking 2007 Mercedes Benz that looks like it was abandoned by its owner starting at just 1 dollar and some expensive medical equipment also starting a a super low $1. These type of abandoned merchandise auctions are a great chance to get great deals on good stuff that was left behind by its owner. Each lot is like another hidden gem filled with great stuff. This auction ends Thursday February 18 at 11am (all times listed are in Eastern Time) and then it is no more. Check out all the other lots up for auction and place your bid by clicking here to head over to www.governmentauctions.org and sign up for your FREE 3 day trial!
On December 9 there will be a large one day auction for a huge variety of goods. This is your chance to once again benefit from GovernmentAuctions.org and buy a huge variety of goods at way below retail costs. Each item is being auctioned off separately and has it’s own separate bidding. Included in the list of available auctions to bid on are such varied items as:
- Gas Masks
- Textile Goods
- A Capsule Filling Machine
- Gold Bars
- Reading Glasses
- Glass Chandeliers
- Wood Carvings
- Automotive Rims
- Playground Accessories
- Salon Tools
- Toys & Video Games
- Face Lift Machine
- Sports Bracelets
- Medical Freezer
- Wine & Brandies
- LED Speakers
- Solar Panels
- Lawn Mowers
…and HUNDREDS of more items! Keep in mind, that this is a ONE day auction that begins December 9 at 11:00 AM and ends on December 10 at 11:00 AM so the bidding will be quicker than usual. To find out more about these auctions, such all the available lot’s you can bid on, bid deposits and and other information, click here to head to www.governmentauctions.org and subscribe for your FREE 3 day trial.
Hey there! We heard that you want to know how a typical government auction works, and we would love to help you understand everything from beginning to end.Here’s a behind the scenes look at the government surplus auctions scene from our comprehensive experiences in the field as well as from an online government auctions websites perspective.
There are two main categories of federal government auctions:
A) Seized Property Auctions:
This includes government seized car auctions, other seized auctions, seized auto auction, etc.
B) Surplus Property Auctions:
This includes original property of the military surplus auction, state auctions like Wisconsin surplus auction, and other military surplus auctions.
Seized Property Auctions:
A) come about via
i. Criminal Seizures
Example: Drug trafficker’s home is raided, and his possessions are confiscated because they were purchased with money made from illegal activities.
ii. Tax Seizures
Example: IRS finds individual did not pay the required tax, and seizes the person’s possessions, (like cars, jewelry, and real estate) and sells them with the intent to sell them to satisfy outstanding tax liability. Sometimes these are even sold via online tax lien auctions!
iii. Customs Seizures
Example: from companies that tried to smuggle merchandise into the country without paying import duties or declaring merchandise properly, or even from people that failed to declare their merchandise properly when returning from a foreign vacation.
All of the above is included as well as any other ill-gotten gains.
Example: Police seizures of stolen property, not claimed by rightful owner within the allotted time, so the property goes into a police seized auction.
Example: local sheriff’s sales of foreclosed real estate and other court ordered assets go into federal government auctions that specialize in government property auctions.
Surplus Property Auctions:
These are essentially US government auctions for goods or property that a particular government agency no longer needs or that have been become obsolete by government standards. This category includes state surplus auction sales as well.
Example: a particular state decides to sell its automobiles or other equipment which it no longer has any use for, and it decides to upgrade by selling its unwanted assets in a gov surplus auction.
Example: A state university sells furniture, sports equipment, scientific equipment, or medical supplies to make way for new ones by selling off their holdings in gov surplus auctions.
Example: the US military decides to sell its surplus equipment through a military surplus auction. In the case of the US army, any American military goods that have been classified as surplus are ones that fit the following criteria:
- Surplus military goods may be becoming too old or obsolete for our military’s current use – like tents, sleeping bags, and clothing, all of which go through some wear and tear over time, and it is only a matter of time before the military deems the items unfit for official use.
- Military technology advances have created a need to upgrade to current state of the art equipment that is better than the enemy’s equipment. That is to say, when you take a look at any of these items sold in public surplus auctions, you can see on the market that there have been new and upgraded versions created with modified technology that is a better fit for today’s military requirements. Instruments used in the field from the 1980s are very different from the ones the military uses today. They could be made from different materials, might be designed differently, and today are able to withstand colder and hotter temperatures. With all of the above in mind, we can understand the reasoning behind why military surplus goods items are such bargains online. The underlying reason for these amazing deals that you can find at any US government auction is that the military needs to keep our armed forces equipped, armed, and supplied with the most cutting edge military technology that is available today.
Now we understand the structure of the typical government liquidation auction.
Let’s discuss how it all works on your end.
In all these circumstances, the government agency involved (either directly, through online government auctions on government auction sites, or through a third party auctioneer) typically puts up the property at a public oral auction, and the general public is able to attend and bid on the seized or surplus items or property, and the goods go to the highest bidder.
While this works differently for various auctions the larger ones typically make a special list available for the public two to three weeks before the auction. This is a list of items is created by the government agency that will be conducting the sale or auction, and is put out in order to help bidders decide what they want to buy and how much they would like to spend.
There will usually be a one or two-day period several days before the auction during which one must register for the auction, and during which time one can (and should) inspect the merchandise that will be offered up for bid on the auction day.
When you register for the auction, you will typically get a large bidder number and an auction catalog that will list the items up for sale next to their ID numbers. Then, when you walk around the inspection area and physically look at and inspect the goods that will be up for bid, you will notice that they are marked with their ID numbers which you can then look up in the auction catalog.
Sometimes, however, inspection of a particular lot may be in another location altogether, (like some government customs auctions).
Several days later, at the time of the actual auction, the auctioneer will call out the ID number of the item being auctioned off (one-by one), and will give a short description of the item. At that time, the auctioneer will begin soliciting bids. This process will go on until the item is sold to the highest bidder, and then bidding begins on the next item.
For most merchandise or property, full payment will have to be made that day (or within several days) via cash or cashier’s check, and you will have to remove it from the promises yourself.
In the case of real estate or other very expensive items, there is usually a 10 to 20% deposit that will be required on the day of the auction, and you may have from several weeks to a month to pay the balance.
We hope that this guide has educated you on the various types of government surplus auctions, and how to take advantage of the great deals being offered, even if it your first time at the auction house! For any further information, and to view government surplus auctions near you, simply click here to subscribe to www.governmentauctions.org for your FREE 3 day trial.
Let’s start things off with some amazing real estate deals that you can bid on right now! This first auction deal of the day is for a charming property located Balch Springs, Texas. Originally built back in 2004, this property has approximately 1,851 square feet of living space that sits on top of a 0.13 acre lot. Inside of the home you will find 3 bedrooms, 2 bathrooms, an eat in kitchen, dining room, living room, tiled and hardwood floors, and finally a large backyard with fenced enclosure. The home itself is in fantastic condition both inside and out, but we’d still recommend you com in for a preview beforehand. Bidding for this home starts at just $1 and the home will be up for live auction in just a few short days. If you’d like to find out more about it, then simply click here to activate your 3 day free trial account!
Next up on the auction block is this 1974 Cessna 310Q Aircraft, Tail# N69HB. With its white and dark blue striped exterior, this plane is ready to take to the skies (with a little bit of handiwork). This aircraft has Twin-McCauley propellers, and Twin Continental 470 series engines, Arnay R-50 GPS, Garmin GNS430 navigation, a Bendiz/King transponder, and much much more! The itnerior is in fair condition but needs a bit of work. The fabric seats are cracked, there is some molding cracking inside the cockpit, and the carpet and headliner is in fair condition. The exterior is in average condition with some chipping around the nose as well as some cracking on the cowls around the props. A thorough inspection of this plane is strongly recommended and flight logs will be available upon request. The current asking price for this aircraft is just $30,1000 with 8 online bids already made. This auction will be ending in just 4 days, 1 hour, and 36 minutes so if you’d like to learn more about it, then all you have to do is click here right now to activate your 3 day free trial.
If you’ve been following along on our blog, you know that we’ve written about over half a dozen different auctions that you can attend, including police auctions, bankruptcy auctions, US Treasury auctions, Department of Defense Auctions, GSA Auctions, US Customs auctions, US Marshals auctions, and others. At these auctions you can find just about anything, from new and used cars to electronics, real estate, and lots of other things. One topic we thought deserved some more attention was the matter of who, exactly, is eligible to attend all these auctions? Are they completely open to the public or do you need some kind of special license, is a question we get asked a lot. Let’s dive right in and look at some scenarios!
General Admission: This one is pretty easy; anyone can attend these auctions. If you’ve got some free time and just want to go stand around and watch an auction you are free to do that (we suggest doing this anyway if you’ve never been to an auction, so you can get a feel for the process). However, you still need to meet the minimum age requirements (18 years old) and have money if you wish to bid.
Trade Restriction: These types of auctions are only open to persons of specific trades. The sale of tobacco is one case where the general public is not allowed to attend. The reason these restrictions exist is to only have people at the auction that actually have some intention of buying. Another reason is that these types of auctions have certain terms and restrictions that are expected of people in the industry. One example of this might be hazardous materials, which need to be handled by a professional. Some other types of trade restrictions include: large machinery, raw gems, jewelry, salvage yards, electric component parts, raw materials, drugs and alcohol, and others. Sometimes, you will also find that assets that are sold in bulk or wholesale are sold with trade restrictions.
Financial Restriction: Anyone who has ever attended a government auction knows that sometimes items sell for tens of thousands of dollars or more. From time to time, in order to ensure that only serious bidders attend, certain financial restrictions are set. These restrictions can vary from auction to auction, but typically involve a cash or certified check deposit, which is collected before you may be admitted to the auction. If you do not win the auction, or if you change your mind and do not bid at all, your bid deposit is refunded. If you are the winner, your bid deposit is applied toward the final purchase price. We’ve seen many auctions, especially the higher priced ones, that have a bid deposit. Although the process of submitting a bid deposit can seem a bit cumbersome and annoying, it can actually work to your advantage. The bid deposit requirement often works to limit the number of bidders, which means less competition for you.
Be prepared to put down anywhere from 10%-20% of the purchase price. If you are the winner of the auction, make sure you are able to follow through and complete the purchase; otherwise your deposit will be forfeited.
Now that you are familiar with the various requirements for admission to a government auction, you can start searching for auctions with confidence. If you are ever unsure of what the requirement are, just contact the auctioneer and they will let you know. Many of the auctions listed on GovernmentAuctions.org are general admission auctions. In those instances where a bid deposit is required, it will clearly say so in the description.
In today’s blog post we want to go over some of the most common mistakes that people make when attending government auctions. Avoiding these costly mistakes could save you a lot of time, effort, and money while you are still learning the ropes. The five most common mistakes to avoid are:
Being Too Eager to Bid at Your First Auction
We always tell people that they should attend a few auctions and get a feel for the whole thing before actually placing any bids. That’s why we recommend that you hold off on bidding at your first auction unless the price is so ridiculously low that you would walk away with an insane deal. Besides, there are som many different auctions going on all over the United States, the one you are currently attending will certainly not be your last. If, however, price is not a factor for you, or if the item you want is so unique that you will never find it again (doubtful), then feel free to disregard this advice.
Not Using Professionals to Your Advantage
For any auction you plan to attend, there will almost always be professional auction-goers in attendance. These could be used car salesmen, computer dealers, discount store owners, etc. Don’t be intimidated by these people; they can actually help you! Since they have experience, you can use them to better formulate a judgment of the merchandise up for auction. If they are bidding aggressively that could be a sign that the items are a good value. You can also usem to gauge the value of a particular item. Since a dealer needs to make a profit, he will usually stop bidding at the point where his profit is less than what he wants to make. However, that doesn’t mean that you cannot bid past this amount. For example, if you are buying a car for personal use, then you can certainly bid a bit more than the dealer and still come out paying much less than if you were to buy the car at retail. Your advantage here is that you are not motivated by profits, you just want to pay less than you would buying elsewhere.
Getting Auction Fever and Not Setting Your Limit
Once an auction begins many people seem to get swept up in the excitement and fast pace, throwing all caution to the wind. The auctioneer can spot a bunch of newbies, and he will use that against you. Remember, his job is to get the highest price possible. He will jump from one bid to the next ($100 to $200) without stopping in between if he thinks people will give him his price. That’s why you should have a set limit that you are willing to pay for an item. No matter what happens, you will not go past this amount. You can also try to slow down the pace by offering less than the amount the auctioneer is asking for.
Not Staying Until the End
Many auction-goers make the mistake of not sticking around until the end of an auction, even though this is where some of the best deals can be had. At the end of an auction, much of the merchandise may have been sold and many of the auction-goers gone home. At this point many of the participants might simply be bored or exhausted by the auction, so you can get a great deal. Also, if a bunch of similar items have recently been sold (10 computers of the same model), then most of the people who wanted that item have most likely purchased it already. The items towards the end will typically fetch lower prices.
Not Reading the Terms and Conditions
This is one of the most common mistakes we see people making. If you’re going to spend time attending an auction, then at least spend some time reading the terms and conditions. Before attending the auction find out as much as you can about the merchandise. For example for auto auctions, you might be able to get a list of cars and VIN numbers, which should allow you to do some preliminary research. You might decide that the auction is going to be a waste of time before you go.
Start looking for bankruptcy auctions by activating your free trial account right now!
Unless you are a professional dealer or a business owner you’ve probably never bid on anything at a live auction before. Sure you may have bid on things online, but live bidding is a whole different ball game. The fast pace and sometimes-hectic environment make live auctions an exhilarating experience. We sometimes get calls from customers who are unsure of how the whole process works, and the idea of bidding against a room full of other people can be a bit intimidating for them. However, we are here to tell you that after reading this email, you should be familiar enough with the basics to confidently attend your first or next auction.
Open verbal auctions are the most popular types of auctions, and the ones we will be focusing on here. At these auctions, the auctioneer asks for a price and the bidder will agree to that price by either raising one’s hand or bidding card or verbally agreeing.
The type of bidding strategy that you choose to use should depend on what you feel most comfortable with and which strategy you believe will give you the best results in that situation. Some bidders believe it is best to come in with guns blazing from the start. In doing so, they hope to deter weaker bidders by showing that they mean business. Other bidders believe it’s best to wait until the bidding slows down to just a few people, and then enter the bidding. They hope that by entering late in the game, there will only be few bidders left, some of whom will grow tired of getting beaten and drop out. These are certainly not the only bidding strategies employed by experienced bidders, but they are some of the most popular, and knowing them will get you more comfortable with the process.
Other strategies have to do with specific bidding tactics rather than the timing of bids. The first thing to do is to try and bid in the smallest increments you can. The auctioneer might not be too happy about this since he will have to spend more time on the item in order to get the prices to the level he would like to see. This strategy also prolongs the bidding, giving bidders more time to think and make rational decisions; This is not something that is in the auctioneer’s interest. For example, if the current bid for an item is $100, and the auctioneer calls out $120, that doesn’t mean you have to bid $120. You can offer $105, $110, or any other amount in between. The auctioneer may very well ignore you if there are many bidders meeting his price, but when things slow down, this strategy works.
Auctioneers can sometimes be hard to understand when they are calling out bids in rapid-fire succession. Their fast way of speaking partly has to do with tradition, but it is also a deliberate attempt to create a fast pace and encourage larger bids. Do not be fooled by this! When the auctioneer is calling out bids, make sure you know if that is the current bid or the amount he is asking. For example, when he says $1000, $1000, $1000, he is most likely asking for $1,000, not looking for a higher bid. When the auctioneer has $1000, he will usually say so clearly, before seeking the next bid.
If you lose the bid on an item, DO NOT LEAVE until the sale of the asset is confirmed. This simple, yet effective strategy can work wonders. In many auctions ,some of the assets that were sold end up coming back up for auction because of some problem with the winning bidder. The problem could be that the winner didn’t have enough money, withdrew the bid, or some other problem. . The auctioneer may start the bidding from the price the item originally sold for, but do not offer that amount, because there is a good chance you can get it for less. When the asset is put back up for auction, some of the people who were initially bidding on it may have left, which could lead to less competition and a lower price.
Don’t buy multiple items at once if you don’t have to. At some auctions, you might have the opportunity to buy 10 office desks in a single lot if you are the highest bidder. If you do this, you will generally end up paying more than if you bid on each desk individually. The reason for this is because the first few items typically fetch the highest bids. If you do not need all 10 desks, you are better off bidding near the end.
Last but not least, make sure the auctioneer can see you at all times, otherwise none of the strategies will do you any good!
Hopefully you’ve never filed for bankruptcy. If you have, you will know that it’s a painful and unpleasant process for the person or business involved, but sometimes it is the only way for the debtor to get out from under their financial troubles. When an individual or business finds that they are not able to meet their financial obligations, they turn to the United States Bankruptcy Court for protection from their creditors. Depending on what type of bankruptcy they file for, this process may eventually lead to an auction. In this email, we go into detail about bankruptcy auctions and talk about how you can score some great deals!
How does a bankruptcy auction come about?
When an individual or business is so deep in debt that there is virtually no hope of them being able to repay their creditors, they may petition the United States Bankruptcy Court for protection. There are two main types of bankruptcies; Chapter 7 and Chapter 11. In Chapter 7, the debtor gives up any chance to continue in business and admits he cannot pay his bills now or in the future. When this happens, the USBC appoints a United States Trustee to handle the orderly disposition of the debtor’s assets and use the proceeds to from the sale to pay off the debts. Once this is done, the creditors have no future claims on the debtor.
In the case of a Chapter 11 bankruptcy, the company is given a chance to reorganize and get back on track. If it turns things around sufficiently, then there will be no bankruptcy auction. However, if the company cannot turn things around, then the Chapter 7 filing will go through, and its assets will be turned over to a United States Trustee for liquidation.
What happens after the assets have been turned over to the trustee?
At this point the trustee will hire a private auctioneer to sell the assets. The goal of these proceedings is to sell the assets at “fair market value” and get the most money for them in order to repay the creditor. However, this often doesn’t happen. For one, it’s often difficult to determine the fair market value of a used item, especially if that item is unique, and being sold during a fast-paced auction. By law, the final sale must be approved by the USBC, so if the final sale price it too low, the USBC may order that it is put up for sale again.
What kind of assets can you expect for find at these sales?
When a company is liquidated, a lot of things that company owns are sold to satisfy creditors. This includes: inventory, desks, chairs, supplies, etc. The same thing applies to an individual: If a professional athlete files for bankruptcy, you might find luxury cars and jewelry up for grabs at a bankruptcy auction.
You can also buy whole businesses or companies.
Sometimes businesses are sold for much less than what it would cost to start it from scratch. Of course you should use a lawyer and accountant to make sure you are truly getting a good deal.
What you need to know.
- Beware of copycat auctions. Some auctions try to pass themselves off as bankruptcy auctions. Carefully read the description. A real bankruptcy auction must be ordered by a Federal judge or United States Trustee.
- The USBC normally holds open verbal auctions that are open to the public, so if you find an auction you are interested in on our site, you can just attend. Sometimes, there are certain financial restrictions that may require you to prove that you are a serious bidder. This could be a bid deposit or a certified check for minimum amount.
- The terms and conditions vary by auction, but most often cash and certified checks are accepted. Payment is typically due the same day or a few days later. Make sure you have the means to remove the property, as well.
Start looking for bankruptcy auctions by activating your free trial account right now!
Real estate can be one of the most exciting assets to invest in. There are so many opportunities to make money: some people buy properties, fix them up, and flip them for tens of thousands of dollars in profits; others become landlords by buying multi-unit properties and renting them out. In this blog post, we will discuss another, lesser-know strategy that savvy real estate investors have been using for years to make a killing
. Welcome to the world of tax sale properties! We briefly cover the basics in this email, but you can read more about tax sales here.
What is a real estate tax sale?
A real estate tax sale takes place when someone does not pay his or her property taxes. Real estate tax sales are held by local governments and are a way for the local government to recoup the money that is owed to it by the delinquent property owner. Here, we are specifically discussing tax deed sales—not to be confused with tax lien sales.
What’s the difference between a tax deed sale and a tax lien sale?
In a tax deed sale, the government auctions off the rights to a property. If you win the auction, you become the new owner of the property—unless, of course the former owners comes forward and pay the back taxes, effectively redeeming the property. You can read more about how that works here. In contrast, in a tax lien sale, the government auctions off the lien (the debt) that is owed it, and the investor makes money on the interest collected.
What type of property can you find at a real estate tax sale?
You will find all types of real estate, from commercial buildings to luxury single-family homes. You can also find vacant land of all types and sizes. It doesn’t really matter what kind of property it is; if someone doesn’t pay their taxes, they will eventually lose their rights to that property.
Are there any conditions to be aware of when purchasing property at a real estate tax sale?
Yes. When you purchase a real estate tax property, some properties are sold free and clear of all liens and back taxes, while others are sold free of back taxes ONLY. When looking for tax sale properties, you should try to look for those that are sold totally free and clear. When buying a property that is not free and clear, the purchaser is buying the propert subject to any liens. Often, if the owner wasn’t paying the real estate taxes on the property, he or she probably wasn’t paying the mortgage, either. Some municipalities give the former owner a certain amount of time to pay back the taxes plus interest and reclaim the property.
Is financing available for tax sale properties?
Typically, no. Once you win the auction, you will need to put down anywhere from 10%-25% of the purchase price as a deposit. Additionally, it is difficult to get any sort of mortgage on these types of properties, because they do not come with a free and clear title. Therefore, the buyer should be prepared to finance the property out of pocket.
How are real estate tax sales conducted?
Real estate tax sales are held by most local governments. You can usually find them by visiting the County Clerk’s office or digging around on the Internet. At GovernmentAuctions.org, we compile property tax sales from all over the United States, so you find them more easily.
Brining a tax sale property to auction is not a quick process. There are a number of steps that the municipality must take, like the notifying the owner and all parties that have an interest in the property, and then waiting a certain length of time, sometimes as long as three years, before bringing the property to auction.
Is it possible to find good deals at tax sale property auctions?
Yes, but you need to do your homework. First, you should familiarize yourself with the local laws: know what you are getting yourself into. For example, in some municipalities, the former owner has up to one year to pay back the taxes plus interest and reclaim the property. During this time, there is almost nothing you can do with the property, aside from maybe renting it out on a month-to-month basis. Someone who buys a property without knowing something this crucial, could end up losing a lot of money as a result.
What you need to know.
- Use the appraised value as a guide for setting your bid, but be sure to factor in the risk involved. Depending on the level of risk, you may only want to pay 25% or 50% of the appraised value of the property.
- Make sure you have some money left over for unforeseen events, repairs, etc.
- Take your time. Don’t just buy the first property that comes up for auction. Learn as much as you can about the neighborhood, local laws, condition of the property, contact title companies, etc.
Interested in finding and attending tax sale properties auction? Start by activating your free trial account right now!