Personal property
includes everything from office furniture to cars and
jewelry. Most of the personal property sold by the government
is used, and sold
"as is."
Real property
such as office buildings, houses, condominiums, apartments,
undeveloped land, retail stores, industrial properties, and golf
courses.
Confiscated, seized,
forfeited possessions
which is held by Federal law enforcement agencies, if
it is not returned to the owner then the property
becomes forfeited and may become available for sale to the
public. The property is sold "as is"
Foreclosed property
is sold when
citizens default on loans secured by a government agency.
Excess and/or Surplus property.
Federal
property no longer needed by an agency is declared as excess to the
needs of that agency. Federally owned property which is no longer
needed by any Federal agency is declared as surplus. If not
transferred to state governments, it is sold to the public.
Unclaimed goods. The U.S. Postal
Service (USPS) is the primary agency that sells unclaimed items,
typically goods that have been lost in the mail. USPS sells the unclaimed merchandise to the public through mail recovery auctions.
Methods used to
sell the items:
Public Auction.
Prospective
buyers get a description of the property to be auctioned along with
bidding instructions prior to the auction. You must be present
the day of the auction. The auctioneer offers the property
item-by-item, the highest bidder takes it.
Sealed Bidders Auction. Bidders submit sealed bids on the
item being offered for sale and the highest sealed bidders are then
allowed to participate in a public auction. The bidding starts with
the highest
sealed bid.
Sealed Bid. The Federal agency
prepares an "Invitation for Bid," an informational sheet
that describes the property being offered for sale and includes the
terms
and conditions of sale. It contains all the information you
need to bid on the item. If interested, you submit your
bid to the
agency, usually by mail. On the bid-opening date, the bids are read
publicly and the award is made to the highest bidder who has correctly followed the
required procedures.
Spot Bid. Usually you are required
to attend the sale to place the bid in written form, you only
get one chance to bid. The property
is offered item-by-item, The highest bidder is takes it.
Fixed price sale.
The merchandise is
marked by the Federal agency offering the sale with a particular price. The
items are ready to be purchased at that set price at a public sale. The items are
sold on a first-come, first-served basis.
Negotiation.
This method is often used when
selling real estate. Federal agencies may negotiate individual
property sales as a way to sell the property. The majority of
U.S. Marshals Service forfeited real property is sold in this
manner. At other times, negotiation may be used in special
circumstances. For example, the U.S. General Services
Administration may negotiate a sale if, after advertising, the
bid prices are not reasonable or if the specialized property is
of interest only to a small group of buyers. Negotiation may
also be used if the character/condition of the property or unusual circumstances make it impractical to advertise publicly.
Sometimes agencies appraise properties to estimate their market
value and establish a list price. The Federal Deposit Insurance
Corporation requires an individual appraisal for all properties
valued at more than $50,000. Offers on the property are
encouraged based on the list price,
with the final price subject
to negotiation.
Broker/Individual Sale.
Real property in
government sales programs is sometimes disposed of by using
private real estate brokers to negotiate the sale. For example,
the Department of Housing and Urban Development uses real estate
brokers in the HUD Home sales program. The Department of
Veterans Affairs' sales program also utilizes
private real
estate brokers when selling residential properties. The U.S.
Marshals Service sells the majority of its forfeited real
property through licensed real estate brokers using multiple
listing services.
Portfolio sales. These sales occur when the
Federal Deposit Insurance Corporation groups together packages
of real estate and loans for sale to the public. Typically, buyers purchase the property as a package. For example, real
estate may be grouped by geographic location and assets from a
failed institution may be
packaged by loan type.
Government Sales
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