How To Make Money At Government Auctions With The Help of GovernmentAuctions.org®
Making money at government auctions can easily be achieved by anyone. Having the resources and doing personal research will surely increase your chances of getting a great deal at a government auction.
The first piece of information that one should have before even thinking about making money is to know what type of government auctions are available to someone such as yourself.
The two main categories of auctions are seized property auctions and surplus auctions.
Seized property auctions derive from many different levels—criminal seizures, tax seizures, customs seizures, police seizures, sheriff sales, and tax sales.
The government obtains a steady flow of properties, cars, jewelry, electronics, and much more from many different avenues. They can seize a criminal’s stolen assets, take control of items that were trying to be smuggled illegally through an airport, or seize any asset that was not paid for via government taxing.
Surplus property auctions are in essence an outlet for local, state, or federal governments to sell items that they don’t have any more use for. These items can range from goods to automobiles to properties.
A surplus auction is a great opportunity for the public to bid on items that they might need or want to sell, that the government has an excess of. For example, if the U.S. Army has a new issue or model of a Hummer that they are going to establish throughout that branch of military, they might have a surplus of older model Hummers that they want to get ride of. This is where you come in. At this surplus auction, you have the opportunity to win these items and essentially turn a profit if you know the right place to flip them.
After you know which auction is suitable for your needs, you must then decide on the type of assets you would like to obtain in an auction. When trying to make money at an auction, it would bode well for the prospective bidders to have a general understanding of the items that will be up for auction.
Research is key to snagging a great deal. If you are looking to bid on a car, then make sure you know everything there is to know on that specific model and make of the car. This type of research will set you up to make a much more informative bid on the day of the auction. Keeping notes on an item will keep your bidding mind state at ease. If you are to go into an auction with no prior knowledge of the item, you might end up buying the asset for retail value or overpaying for something you thought you were going to get a deal on.
Lets say for example, you are looking to bid on a car at a government auction. Doing your homework will help you land that dream car for much less then what it’s worth. Check anything and everything about recent sales of this automobile. Check the Kelley Blue Book value and Carfax report. You may also want to check other auction outlets, such as eBay, and see how much this exact model is selling for at online auctions, not sponsored by the government. If you know the numbers, and have a general understanding of how these auctions work, you could easily do well for yourself that day.
Setting a price limit for yourself should be the motto you live by when you’re trying to make money at government auctions. Keeping a price range in your head, and sticking by those numbers no matter what, will help you have a profitable outcome when you are bidding on any item.
One of the most common sales at government auctions is property. Winning a property auction could be your ticket to scoring a huge deal. No matter if the property is to start a new home for yourself, or just for investment purposes, research is the answer to a real profit. Before bidding on a property, find out specific and precise details of the property you want to acquire—area, size, room number, and value are definitely aspects of the property you should consider before bidding.
Knowing your own financial situation is vital in buying a property. Can I afford this home? Do I have a steady flow of income to stay afloat while I pay off this property? These types of questions will benefit your thought process before the actual auction. On many occasions, you could end up obtaining a home that you never thought you could have in your current financial bracket.
There are other crucial questions you need to consider before bidding on a property. Do I have enough money for the initial down payment? Will I mortgage this property? Are the taxes too high for my living arrangements? Is there resale value in this property? Consider all your options before making any rash decisions.
You will not be alone at these auctions—so you must not act like you are. Keep your eyes and ears open at all times. Missing a bid or a piece of information might damper your chances at scoring your desired item. Get there early, and you will have far fewer people to battle with at these auctions. Also, another way to snag a good deal is to wait for the end of the day auctions. People have most likely already exhausted all their money and efforts into the earlier auctions. Come early and stay late—it might be highly beneficial if you are looking to make money that day.
A common misconception about auctions is thinking the auctioneer has the power. You cannot get fooled or persuaded into settling for a value that you do not wish to spend. Only let yourself and the other bidders dictate the flow of the auction.
Lack of experience at an auction can be harmful in your quest to make a profit. But, do take your first auction outing as a learning experience. If you don’t do so well the first time around, make the correct adjustments and go back to the drawing board. After you again do the research, which might be time consuming, you will have a better understanding of the world of government auctions. Like anything else, auction bidding takes practice and precision move making—so don’t be afraid to get your feet wet. Learn from mistakes and you will find the bargains you have so desperately been hunting for.