SALES METHODS
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.
Public Auction. The Federal agency follows traditional auction procedures and gives prospective buyers a description of the property to be auctioned along with bidding instructions before the auction. The auctioneer conducting the sale offers the property item-by-item and awards the item to the highest bidder. When buying through an auction, the buyer must be present to bid, unlike the sealed bid method, which is conducted by mail.
Sealed Bidders Auction. A sales method that combines aspects of the sealed bid and auction methods. 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.
Spot Bid. Bidders are usually required to attend the sale to place their bid in written form. The property is offered item-by-item, as in an auction. However, in an auction, the bids are voiced; with the spot bid method, the written form allows a one-time chance for the bidder. The highest bidder is announced publicly, receives the award and the sale is made. Buyers are encouraged to be present at the award.
Fixed price sale. The Federal agency marks the merchandise with a particular price. The public may purchase the items for 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’ 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 Resolution Trust 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 Resolution Trust 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.
Unclaimed goods are sold
Unclaimed goods are sold by the Federal Government when items are lost, abandoned, or unclaimed by the public. 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 its “dead letter” sales program.
