Making the Most of Government Auctions

Auctions sponsored by the federal government are the best places to get great deals. Imagine buying a fine set of jewelry for a fraction of the original cost. But like most auctions, government auctions have their own pitfalls. Here are some things to remember when considering government auctions:



Well-known but not advertised

While you can get the real deal from government auctions, there is too little information about it. The government does not bother too much on advertising the auction dates and the items it would be offering. In fact, it is not bothered whether or not the auction will yield profit. All it wants is to get rid of the seized properties and merchandise and sell it to the willing public.



So if you are wondering where to find such auctions, it is best to visit www.usa.gov and start your research from there.



No assurance

The disadvantage of buying at an auction is that you will never know whether the item is in its best condition until you have bought it. The same is true with government auctions. The items sold at such auctions could range anywhere from abused to mint condition. The bad part is it is too seldom that the items to be auctioned will be allowed for inspection. Chances are you won't be able to test drive the car you are eyeing, the most you can do maybe is to test if it starts. The auction organizers, in fact, do not test the items before they put them into auction so don't count on anything.



Competition

A lot of people attend government auctions so you should brace yourself for tough competition. Bidders range from high-end to low-end buyers and you may be up against people who have higher buying power than you.



Intense competition could lead bidders to overbid, which is not really advisable. Overbidding may lead to paying more than you should.



Phonies

Some government auctions are not really sponsored by the government, there are also some phonies out there. To know if the auction is legitimate or not, the best course of action is to check on the website stated above and contact the agency that is being represented by the auction.



Previews

As said earlier most government auctions do not allow previews. This does not mean that all auctions do not provide viewing time. If you are planning to bid on hundred dollar-items you should give yourself the assurance of examining them ahead of time.

Types of Government Auctions

Government auctions, if you are the type of person who wants to find just about everything on sale, is among the best options you have. Government auctions showcase almost all types of items and properties- from earrings to multi-million dollar properties.



With that in mind, it is easy to understand that government auctions come in many types. Each of which differ in the manner of how the government obtained the items or the properties and the manner of disposal the government uses to sold off the properties to the public while getting a profit in return.



Here are some of the types of government auctions:



GOVERNMENT SURPLUS AUCTIONS

Also known as the GSA Auctions, is the type where the Government sells everything that it no longer needs. Thus you can find anything and everything being sold here. Typically, the items here are second hand but they are, in most cases, top caliber and buyers can get them at excessively low prices. The government does not aim to make profit on such things; it only wants to get rid of them.



Common items found in GSA auctions are automobiles, jewelry and office equipment. However, surplus buildings, real estate and properties are also sold here.



Many people doubt though whether they should buy too-good-to-be-true items in such auctions. But as they say, to see is to believe. But there is no doubt that most of these things are authentic.



SEIZED PROPERTY AUCTIONS

Mostly selling confiscated properties, seized property auctions sell properties and items that were foreclosed by the government or taken from the original owners due to tax, financial and other related issues. However, seized properties may also come from confiscations from illegal activities like drug dealing or smuggling.



Seized property auctions could also stem from tax seizures. A house, for example, could be seized by the government if the owner fails to pay his taxes, mortgages and bills. This could extend to other properties like clothing, cars, and real estate.



Custom seizure auction, another type of seized properties auction, sells goods that could come from: a) smugglers, b) people who were not able to present enough and detailed information of the merchandise, and c) people who came from other countries bringing along with them unauthorized merchandise.



Buying from government auctions offers you some of the best pieces of items at a very (very) low price. If you want to find the best deals, try to research the schedules of government auctions.