It may be rare to pick up a bargain at a commercial real estate auction, but it not something that is unheard of. There may also be some misunderstanding of what will be available at a commercial real estate auction, with many people envisioning a closed factory or other business going up on the auction block. In reality, any property that is zoned for commercial use can be made available at these sales, and buyers are often looking for a way to expand their existing holdings or to increase their inventory of commercial properties.

While business closures may be the prime source of properties up for sale at a commercial real estate auction, some owners may want to get out of business or move to a different location. They may be able to sell the property through an agency, but some choose to use a commercial real estate auction service to make the sale happen sooner than they envision it happening on the open market.

Many times, they can also bring more people to a commercial real estate auction than they can find as potential buyers for the property, often leading to not only making the sale faster, but also for more money. By selling through a commercial real estate auction it also gleans out those who have nothing better to do than waste an agent’s or owner’s time looking at properties that have no intent of buying.

Property Zoned Commercial Allegedly Valued For More

Regardless of prior use or intended future use, the value of property that is zoned for commercial use is typically valued higher than residential or even industrial zoning. Buying property at a commercial real estate auction may end in ownership of land that costs a little more, but is often considered a better investment. This is especially true if the auction buyer is hoping to develop the land into a commercial venture, or wants to build a home in an area without being part of a major residential development.

Most buyers of property at a commercial real estate auction do not only look at the condition of the property, but also use their vision of the property’s potential use and future value to make their decision. What may look like a vacant building or chunk of land to the uninformed, those who seek out a commercial real estate auction often can see more potential in a property than those attending for the first time.

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Typically, there is no charge to participate in a free government auction and as long as all bidders play by the rules of the auction house, the winning bid will be the price they pay for the merchandise. There will be times when there is an unpublished reserve price on merchandise, most often with surplus vehicles being sold by the government, and if the winning bid does not meet this reserve the item will not be sold. Typically, items sold at a free government auction that have been confiscated for convicted felons or seized to pay off tax debts are sold without a reserve price, although some exceptions do exist.

The types of items sold at a free government auction will be as varied as the people attending the sale. Those who have attended private auctions in the past understand how the system works, but those new to the auction world can easily become confused in this rapid paced sale environment. Car auctions for example, usually last about one minute from the opening bid until the gavel falls on the winning bid amount during a free government auction.

There are some who try to horn in on a free government auction by charging for listings of the vehicles, and while this may be convenient for some auction attendees, each agency sponsoring a free government auction also provides the listing without charge. Once an auction is scheduled, there is no guarantee that will take place. If there is a lack of merchandise for that day, it can be cancelled with usually a two week notice.

Registration Required For Auction Participation

Similar to private auctions, before bidding on anything at a free government auction participants are required to register. They must also provide valid identification and are issued a bidder number. If they are the winning bidder, the auctioneer or their helper will record the item, the winning bid amount and the bidder number. In most cases, even at a free government auction, the merchandise cannot be removed from the premises until it is paid in full.

The same requirements exist at a government surplus auction at which extra cars, trucks and many other items are disposed of and the proceeds used to help replenish the government’s supplies. These are also considered a free government auction with dates, times and listings of merchandise up for bid will be published well before the time of the auction. They offer everyone the opportunity to get some great deals on serviceable merchandise.

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There is virtually no limit to the type of merchandise that can be found at a government seized auction and many times some great bargains can be found. Some buyers may have a problem with the origins of the items up for sale at a government seized auction, but for the most part the available deals overshadow any remorse of knowing from which they came. If a person is able to buy a luxury vehicle for half of its value, they may not care that it was confiscated from a convicted felon and seized by the government and sold to help pay for the legal action during which it was found.

Some of the items up for sale at a government seized auction also come from courts that have confiscated the items to help satisfy the tax debt of companies and individuals. When a person is behind on paying their income taxes, the government has the legal right to seize their property and sell it at a government seized auction in order to satisfy the debt. Whether at the federal or state level, many times the items are sold with no minimum bid and no reserve price, offering some hefty discounts on quality merchandise.

Some government agencies will hang on to some of the items instead of listing them for sale at a government seized auction, but this requires specific court action to keep them off the auction block. Money from the proceeds of a government seized auction is used to help repay agencies for their work as well as to help fund future actions.

Learning Locations For Future Auctions

Many more people would probably participate in a government seized auction if they knew when and where they were being held. The government is required to advertise the time and location of all actions concerning a government seized auction, but there is also the chance that some of the items listed for auction will not be available at the time of the auction.

The government agency holding the sale can provide a free government auction listing, but if the person that owes the government money for example, is able to pay off the debt prior to the sale, the items will be pulled from the government seized auction, even once it has been listed for sale. Agencies are required to list when and where the auctions will be held to provide everyone an equal opportunity to bid on them.

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Whether looking for a second car for the family, the first car for a teen in the family or even a luxury car that is otherwise out of the question, visiting a government car auction can provide ownerships opportunities that may otherwise be unavailable. In most instances, potential buyers can at least look over the vehicles being put on the auction block but chances are there are no test drives available of anything offered at a government car auction.

Many agencies in the government, whether it be on the federal, state or local level use cars and trucks in their daily activities. Once the vehicles have passed their useful life, they are offered for sale to the general public at a government car auction. While many of the vehicles may have high mileage on them, they have also most likely been properly maintained, meaning that a vehicles purchased at a government car auction still have a lot of life remaining.

Although some of the vehicles offered on the block at a government car auction may be damaged or need some repairs, most can be driven home with a clear title. Many of the vehicles that make it to the block are those used by government employees, there will be some that are part of a government seized auction, being sold along with other merchandise that was taken from convicted felons, purchased with money from elicit activities.

Bankruptcy Lands Many Vehicles On The Block

Some of the vehicles sold at a government car auction may also be from bankruptcy proceedings, during which property is seized from companies and individuals and sold to help satisfy the debt. Proceeds from the government car auction will then be turned over to the courts to be distributed to creditors and others with an interest in the money owed by the bankrupt individual.

The government also has the legal right to seize property to help pay for any past due taxes or legal fines owed by an individual or company and a government car auction is only one arena in which the recovery process takes place. Any income realized from a government car auction is then used to pay off the debt, minus the cost of advertising and conduction the auction.

Anyone with an interest in owning a vehicle for a portion of its appraised value can participate in a government car auction. There are some requirements as to when payment in full must be made, typically the day of the auction, but the price paid for the vehicle will usually allow that to happen without creating a hardehip.

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Those looking for a new used car may find some of the best deals available at government auto auctions. Whether the vehicles were used and maintained by the government before replacement or seized during a law enforcement action, in order to help fund future activities in a department, the vehicles are offered for sale at government auto auctions, usually for pennies on the dollar of the vehicles’ value.

For example, if a person is arrested for a major crime and it is determined by the court system that vehicles or other property has been purchased with money from illegal activities, any vehicles involved can be seized by the government and offered for sale at government auto auctions. There have been many luxury vehicles that have been seized and sold to the public, allowing buyers to enjoy their purchase of a vehicle, which in most instances would not be otherwise possible.

Learning about upcoming government auto auctions and the vehicles that will be sold is not a secret, although it is something of which many people are unaware. In today’s electronic age, the internet has made keeping track of upcoming government auto auctions much easier instead of relying on friends and relatives of the government workers to let people know when they will occur.

Law Stipulate Notification Process

The same laws that allow for vehicles to be offered for sale at government auto auctions also detail how the public is notified of such auctions. Typically, the government auto auctions have to be advertised at least 30-days in advance and anyone wanting to bid on the vehicles has an opportunity to at least look at the vehicles that will be offered at a government car auction before placing a bid.

Additionally, unlike many local auto auctions, government auto auctions usually take place in various locations around the country offering people from all areas to bid on vehicles being sold. By checking out internet sites from various government agencies, it is possible to have alerts sent to private citizens to let them know of upcoming government auto auctions in which they may be interested.

Additionally, there are companies that keep track of all government auto auctions and offer members of their organizations and companies the opportunity for advance notification of government auto auctions in their geographical area. While some sell their lists to anyone willing to pay for them, others make the upcoming auctions exclusively available to their members.

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