Federal and state governments sell seized and surplus property at government auctions.It's important to do your homework before you bid on these items at an auction.If you place the winning bid, you have to pay the full amount in full and take possession of the property immediately.To prepare for a government auction, you need to register as a bidder and research the property before you bid.
Step 1: The bidder registration form can be downloaded.
If you want to be a bidder at a government auction, you have to give specific information.Either you can download a registration form or create a bidder account on the government auction website.Which method you choose depends on whether the property is being sold at a live or online auction, and which government agency or contractor is in charge.While most states have a single website for all state government auctions that are open to the public, federal auctions may be found through several websites, depending on whether the property is auctioned directly by the U.S. General Services Administration (GSA) or by a contractor.Clicking the registration button on the GSA auctions website will bring you to the appropriate application materials for most federal auctions.Government cars can be auctioned to the general public.Their application can be found at BSCAmerica.com.
Step 2: Get information.
Before you complete the form, you may want to take a moment to gather any required documents so you have them ready.Depending on the type of property you want to bid on, the requirements may be different.If you want to bid on a motor vehicle, you need a government-issued license.Proof of citizenship is required for most federal auctions.Some states may restrict their auctions to businesses in that state.If you want to bid on government surplus property in your business, you need to provide credit card information for the card you're using to register for online GSA auctions.
Step 3: The bidding terms and conditions should be reviewed.
Each government agency or contractor has specific terms and conditions that apply to both the bidding process and the final sale.Before you can be a bidder, you must understand and accept the terms and conditions.The rules and procedures for the auction are described in the terms and conditions.You must be at least 18 years of age to be employed by the government entity that sells the property.What happens if you win a piece of property at an auction is described in the terms and conditions.If you aren't prepared to pay for the item in full, you should not bid on it, because you are contractually obligated to make the full payment.
Step 4: You have to submit your forms.
Before the auction begins, you must submit your registration forms either electronically or through the mail so that you can become a bidder.You should make a copy of your form before you submit it.There is no charge to register as a bidder even if you are required to provide a credit card number.You may have to pay a deposit for certain properties.If you register online, you will receive an email confirmation and a notification when your registration has been accepted, so you can create a user name and password for your account.
Step 5: Take a look at the list of available property.
You can look at the property on the website depending on how the auction is organized.The contractor in charge of the auction may have a list of specific items.Information about the item or items being auctioned off, the location of the property, and the amount of highest bid are included in the entry for each active listing.You can find a more detailed bid history that shows the start and end of the auction.Information for motor vehicles includes the year, make, and model as well as other relevant details.If a vehicle is a standard transmission, the information will note that.Do not bid on a standard car if you don't know how to drive it.There won't be any statements about the condition of the property.Everything is sold at a government auction.
Step 6: You should inspect the property in person.
If you are going to bid on a motor vehicle, it's a good idea to look at it in person before you make a bid.If the text description only includes basic information, it doesn't compare to being able to look at the item in person.Since all items are sold as is, it's important to get a look at it before you bid on it.You can find information about the location and hours of availability on the item's listing.Vehicles and most property are sold where is.If you are interested in a vehicle that is located on the other side of the country, keep this in mind.The property will not be brought to you if you place the winning bid.
Step 7: Make sure you line up your financing.
If you're going to need a loan, you should apply before you start the bidding process because you may have to pay the entire amount immediately after the auction closes.If you're given time to make a full payment after the auction ends, you won't have more than 24 hours.It's better not to attempt to wing it because this may be long enough to find financing.You can use as many as two forms of payment at some auctions.If you had two credit cards, each with $10,000 limits, and you submitted a winning bid on a car, you could split that amount over the two cards.You may not be able to use more than one form of payment.Use the maximum amount you are willing to bid on an item to figure out your financing options.In the case of motor vehicles, you may be able to get a loan guarantee from a bank.These guarantees are usually for a specific range.If your winning bid falls within that range, the lender will write you a loan.
Step 8: The property is for sale.
You can place a bid at any time while the auction is open by logging in and clicking the button.You may have to show up in person for live auctions.Even if there is no reserve on the property, federal law requires the government to get at least fair market value for any property auctioned off.You may not win the property even if you make the highest bid.You should note the location of the property if you are bidding online.If you make the highest bid, you must pick up the property as soon as possible.Sometimes you can make arrangements for someone else to pick up the property for you, but this isn't always an option.
Step 9: You should receive notice of your winning bid.
An email will be sent to you if you place the winning bid on an online auction.You will usually know immediately in the case of live auctions.When and where to claim your property will be given to you in the mail.Immediately after the closing of the auction, you must pay a deposit for your property.A percentage of your total bid price is the amount of the deposit.A $1,000 deposit is required from the winning bidder at the end of the auction.The amount of deposit to be made should be listed in the bidding information for the item, as well as the terms and conditions you reviewed when you registered as a bidder.
Step 10: Pay in full.
After you've won the property, you have less than 24 hours to complete any ownership transfer paperwork and pay the entire amount of your bid.You can pay with a credit card, money order, or certified check.If the methods of payment aren't specified in the terms and conditions, you should contact the agency or contractor in charge of the auction.You may be able to spread the amount out by using two credit cards if you only use one method of payment.You are considered to be in default if you don't make a full payment by the deadline.If you can't pay your winning bid, you may be liable for significant damages.
Step 11: Remove the property.
Once you've paid for an item, you have to remove it from the auction lot or government location.Fees will apply if you arrange for your property to be held for a limited period of time.It is your responsibility to comply with any federal, state or local laws related to the registration, possession, or transport of any piece of property you have purchased.Depending on the type of property you've purchased, you may be responsible for state or local use taxes.To claim your property, you need to show a government-issued photo identification when you pick it up.You should bring with you any ownership documents you've already completed, or notifications from the government agency or contractor.