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Let the bidding begin…
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May 17, 1999: 7:31 a.m. ET
Government auctions could land you the house, boat, or car you want
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NEW YORK (CNNfn) - Forget the yard sales. If you're a bargain hunter with a taste for big-ticket items, you might do better with Uncle Sam.
"Government agencies auction off everything from cars and stereos to houses and livestock. You name it." said Don Campbell, an auction house aficionado and author of "Government Auction Guide." "There's usually something for everyone."
A half-dozen or more federal agencies hold professionally run auctions throughout the year and across the country, selling millions of dollars worth of seized, abandoned and surplus property. Some are held in empty airplane hangars, others are convened in fields or on-site at the property location.
Campbell said the auctions themselves are entertaining as a spectator sport. But if you're looking to take something home with you, he said, bring two forms of ID, a wad of cash and a willingness to bid with the big boys.
"The agencies (hosting the auction) usually publish a list of the inventory ahead of time and if there are a lot of hot items for sale, you could get a thousand or more [bidders]," he said. "It gets very aggressive."
Going once…
Organizers of government auctions say it's important to recognize that while you may walk away with a decent discount on that boat or house, you should not expect to land the deal of the century.
"This is by no means a giveaway," said Arnold Rosenthal, assistant administrator for portfolio management with the Small Business Administration, which occasionally auctions off the property it acquires through loan defaults. "This is our best effort to get the best value in the marketplace that we can."
He added the SBA doesn't just accept the first bid offered. It holds onto the items until it receives fair-market value.
Campbell, a veteran of government auctions, said the best you'll likely do is 35 percent off retail value -- and only if competition is light.
"You always hear people talking about the $200 Lamborghini," he said. "No way. It doesn't work that way."
The perception that these auctions are fire sales, Campbell added, "needs to be corrected."
Even so, any percentage off is money in your pocket.
"You might pay 20 percent less for a car than you normally would, and for a car that is worth $25,000 or $30,000, that's a great savings," Campbell said.
First stop
If you are just getting started on the government auction circuit, you might want to check in first with the Department of Treasury.
The agency uses Fairfax, Va.-based EG&G, a government contractor, to administer the sale of assets both seized and abandoned through the Internal Revenue Service, Secret Service, the Bureau of Alcohol, Tobacco and Firearms (ATF), and U.S. Customs Service.
Since the company was awarded the contract in 1990, the government has recorded an estimated $187 million in revenue and benefits. (The benefits include the value of the seized property that the government transfers over for its own use.)
Money from the auctions goes into the U.S. Department of Treasury Asset Forfeiture Fund.
Kerry Cooper, a spokeswoman for EG&G, said the department's three main sales centers are based in Los Angeles, Ft. Lauderdale, Fla., and Edison, N.J. But it also conducts general merchandise auctions in El Paso, Texas and Nogales, Ariz. - not to mention the real estate auctions it holds at property sites across the country.
Here again, though, you should be prepared to shell out some cash.
"You get deals, not steals," Cooper said. "You can get a great deal, but you are not going to walk out of there with a $5 Ferrari."
The log cabin-home pictured below was seized in an IRS Criminal Investigation case. The Hovland, Minn property was linked to the largest bank robbery in U.S. history and will go to the highest bidder May 22.
Cooper said the department also sells bulk quantities of goods that are left unclaimed or abandoned at the border.
"We might get 70,000 jogging suits in boxes left behind for some reason," she said. "We have gotten boxes of Chinese tea that were mislabeled as 'true medicine.' That can't be sold here."
For those items, most of the bidders are professional importers and exporters hoping to pick up some cheap goods.
"We have sold everything from human hair and grave stones, to racehorses and DC-9s," Cooper said. "A boxing ring we auctioned off was seized from drug smugglers in North Carolina, who bought the ring with drug proceeds."
Click here for more information on the department's auctions. You can also call the 24-hour Public Auction Line at: (703) 272-7373 for a list of the auctions scheduled in all 50 states, Puerto Rico, and Guam.
Going twice…
If you're in the market for real estate, and you're flexible on the location, you're in luck.
Right now, the Small Business Administration is looking for buyers for 195 real estate properties valued at $28 million. (Not all are sold through auctions and the agency is in the process of scaling back its sellable inventory.)
Click here for contacts to your nearest SBA office.
The Federal Deposit Insurance Corp., or FDIC, also operates a Web site for consumers interested in bidding on "owned real estate." Click here for information. It even advertises details on bargain properties.
A few other sites to check out are the Department of Housing and Urban Development; FannieMae, which keeps updated lists of foreclosed properties; and the Army Corps of Engineers, which sells single-family homes through its Homeowners Assistance Program, or HAP.
HAP was set up in the 1960s to assist federal personnel stationed at or near a base scheduled for closure, and who are unable to sell their homes "under reasonable terms and conditions."
The properties are offered for sale to the public, but local real estate agents who sign agreement with HAP, can show the properties to prospective buyers and submit offers on behalf of the buyer.
(Click here for a list of current HAP inventory)
Surplus sales
The Defense Department operates the Reutilization and Marketing Service, which regularly puts on the block any surplus property the military no longer needs. The quantity of surplus property is on the rise, it said, as military downsizing continues.
Under the program, the department allows government agencies and non-profit groups to obtain property for reuse free of charge. Anything left over is sold to private companies and individuals, usually in sealed bid auctions.
(Click here for a photo of televisions put on the DOD auction block in February)
USPS
The United States Postal Service periodically auctions off the damaged and unclaimed items that end up at its mail recovery centers. The postal service suggests you check with, or write to, one of the three centers to find out when and where the next auctions will take place.
GSA
Lastly, the General Services Administration, the procurement arm for the federal government, sells personal property by sealed bid, auctions, spot bid, fixed price and negotiated sales.
The property sold includes personal and business items, such as cars, plumbing equipment, computers, furniture, tools and medical equipment.
Gone…to the highest bidder
EG&G (the company that runs the Treasury Department's auctions) offers some final tips for making the sale.
--Read the auction catalogue; it provides all the information you will need, including terms of the sale.
--Don't bid on items without inspecting them first; All items at its sales are sold "as is."
--Read the terms of sale; rules govern each sale and provide buyers with the information they'll need to complete the purchase.
--Pay attention; bidding progresses quickly. Failure to pay attention or bidder misunderstanding will not cancel a sale.
--Have the correct form of payment: EG&G Services accepts cash or cashier's checks., but other auctioneers accept MasterCard and Visa.
--Claim your merchandise: Terms of the sale provide removal dates and guidelines. Failure to comply may result in cancellation of sale, repossession of merchandise and forfeiture of all monies paid.
Enjoy! 
--by staff writer Shelly K. Schwartz
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