We all love a great bargain. That’s one reason that government surplus and government seized property auctions are so popular. When we can get something truly remarkable at a price that is astonishing, most of us go home a happy camper. That can happen at government surplus property auctions or government seized property auctions. But the opposite can happen, as well. These surplus and seized property auctions can quickly turn into a bidding free-for-all that gets expensive quickly.
Not all auctions offer the wins you may see on popular TV auction shows. You can protect yourself from the pitfalls of an emotion-packed, high energy auction by employing a few strategies before the auction and during the bidding. Here’s a few suggestions:
Preview the items that will be auctioned before the auction date, if possible. Decide what your maximum bid will be for each item you’re interested in, then stick to it.
Research the current market value of the items you’re interested in before the date of the auction. If you arm yourself with information, it will be much harder to stick you with an item for which you’ve overpaid if you’re aware of the value beforehand. That way you can check yourself to avoid overpaying.
Keep an eye on the professional dealers at the auction. If a dealer bows out of a bidding war at a certain amount, the chances are that the item isn’t worth much more than that. Unless you’re absolutely certain about the market value of an item, you could end up paying more than the item is actually worth. The professionals may have noticed some problems that you missed in your preview look at it. So it generally pays to keep an eye on the pros at these auctions.
At most auctions, the rule is that the highest bid wins. Very few allow cancellation of a bid once placed. Before the auction begins, find out if you can cancel a bid if you need to.
When dealing with an auction conducted online, remember that each auction website has their own way of operating. In the case of government agency auctions, some are operated solely by the agency itself. Others may see the government agency only involved in maintaining the auction site, while the actual auction may be handled by a third party company. This can make a difference when it comes to payments accepted and taxes, fees, and other charges that can accrue.
Check before the auction to determine what types of payments will be accepted. There is no uniform payment policy across all government agencies that participate in auctions. Some will accept credit cards or even personal checks. The Internal Revenue Service, as well as other governmental agencies, will not accept these forms of payment. The most widely accepted form of payment accepted is a cashier’s check.
If you’re planning to attend an auction dealing with real estate property, you’ll need to find out before the auction whether financing will be permitted. Many of these auctions do not allow it. That means your full bid – your full purchase price – will be due when you win the bid. Some auctions will also still require you to work through a real estate broker or agent in order to register a bid and make a purchase.