An Insider’s Guide to:
Federal Government Sales
Federal Government Sales
The U.S. General Services Administration Guide to
Federal Government Sales
TABLE OF CONTENTS
Introduction ................................................................................................ 3
Consumer Tips ................................................................................................. 4
Federal Government Agencies With Sales Programs
Department of Agriculture .......................................................... 8
Department of Defense
U.S. Army Corps of Engineers ......................................................................... 10
Defense Logistics Agency, Defense Reutilization and Marketing
Service ............................................................................................................. 12
Department of Energy ..................................................................................... 14
Federal Deposit Insurance Corporation ....................................................... 16
U.S. General Services Administration
Federal Supply Service ..................................................................................... 19
Federal Property Resources Service ............................................................. 22
Government Printing Office ......................................................................… 24
Department of Housing and Urban Development ........................................... 26
Department of the Interior
Bureau of Land Management ......................................................................... 28
Department of Justice
U.S. Marshals Service ..................................................................................... 30
U.S. Postal Service ........................................................................................... 32
Resolution Trust Corporation ......................................................................... 36
U.S. Small Business Administration ............................................................. 40
Tennessee Valley Authority ......................................................................... 42
Department of the Treasury
Bureau of Alcohol, Tobacco, and Firearms ................................................. 43
U.S. Customs Service ..................................................................................… 45
Department of Veterans Affairs .................................................................... 47
A Final Note ...............................................................................................… 49
Glossary ....................................................................................................... 50
Introduction
When U.S. Customs confiscates an imported necklace, or the Department of Defense no longer needs a power tool, or the U.S. Marshals Service seizes a sports car from a drug dealer, all these items may become available for purchase by the public.
Although some surplus and forfeited items of the Federal Government are transferred to other Federal agencies or given to state and local governments, a staggering variety of items from vehicles to office equipment to real estate find their way to the public through Federal Government sales.
This revised guide is published by the U.S. General Services Administration in cooperation with 18 Federal sales programs. With informative listings from each Federal sales program combined with practical consumer tips, this guide is designed to help you identify the Federal Government agencies that sell items to the public. This guide:
Use this guide to contact the appropriate government sales program.
Uncle Sam may have something to sell that interests you.
Consumer Tips
Some Federal agencies maintain mailing lists with names of people interested in being notified about upcoming sales. In these cases, agencies may charge a subscription fee to maintain the list and cover mailing costs. Non-governmental organizations that sell information about these sales often don’t tell consumers they can receive sales information just by contacting the agency’s local or regional office. You may see advertisements offering to sell you access to little-known sources of Federal Government property. It’s likely that they are selling the names and addresses of the Federal Government agencies listed in this publication. Be aware that the information sold by non-governmental entities may not be accurate or up-to-date.
Know where to find up-to-date Federal Government sales information.
To find information about specific upcoming sales, check the classified or business sections of national or local newspapers. Some sales programs may even advertise on local radio and television. Notices may also be posted at post offices, town halls, and other local and Federal Government buildings. Current information on sales programs is sometimes published in trade journals and periodicals such as the Commerce Business Daily (CBD). Many libraries and local Chambers of Commerce maintain CBD subscriptions for public use. If you would like a personal subscription, you can call the Government Printing Office’s (GPO) ordering line at (202) 512-1800 or write Superintendent of Documents, GPO, Washington, DC, 20402. A one- year subscription costs $324 for priority mail and $275 for non- priority mail. Sales information may also be listed in the Federal Register, a daily publication listing Federal Government activities that is available at most libraries. A subscription to the Federal Register is also available through GPO for $490 a year.
If you need more information than is provided in this publication, you may be able to obtain it by directly contacting the local or regional office of the Federal Government agency that sponsors a particular sales program. Use this publication as a guide to identify the parent agency of the sales program. For example, if you are interested in learning more about the U.S. Marshals Service sales program, look under the Department of Justice in the "U.S. Government" listings in the phone directories of major cities in your state.
If you have difficulty locating the local offices of a particular sales program, call the Federal Information Center (FIC) for assistance.
This service, provided by the U.S. General Services Administration, can tell you the location of the sales office closest to you. Call the telephone number listed below for your state or metropolitan area. All the "800" numbers are toll free. These "800" numbers can be called only within the states and cities listed. If your state or area is not listed, please call (301) 722-9000. This is a toll-call and regular long distance rates apply. Users of telecommunication devices for the deaf may call toll free by dialing 1(800) 326-2996 (TDD or TTY). Federal Information Center Telephone Numbers
Alabama
Birmingham, Mobile
1(800) 366-2998
Washington
Seattle, Tacoma
1(800) 726-4995
Wisconsin
All locations
1(800) 366-2998
Do your homework before going to a Federal Government sale or auction. Before attending, research the sale by contacting the sponsoring agency. Find out how and when the sale or auction will be held, what bidding procedure will be used, and what special restrictions or unusual conditions apply. It’s important to ask what forms of payment are accepted. Most sales require a guaranteed method of payment such as money order, certified check, or cash. Credit cards are sometimes accepted. Also, look for information prior to the sale on the buyer’s responsibility for property removal, inspection times prior to the sale, and zoning rules if purchasing land in an urban area. In most cases, the "Invitation For Bid," an informational piece released by the sponsoring Federal agency containing a description of the property being offered for sale with the sale terms and conditions, will answer these types of questions. It’s wise for potential buyers to attend several sales to get a feel for the auction process. With just a little research, you can obtain the information that you need to make a successful purchase.
Inspect the property carefully before buying. Chances are you will not find new or unused items at Federal Government sales. And because the sales items are used, the condition of the goods will vary. For example, some forfeited vehicles may be in excellent condition, others may have high mileage or a stripped interior. Although information about the condition will be given, it is still necessary to inspect before you purchase. It is the buyer’s responsibility to verify that the description of the item fits its actual condition. Find out if the goods are sold "as is" or can be returned. Most sales are final.
Don’t expect to buy a $1 yacht.
Goods in Federal Government sales programs are usually sold at fair market value. The "bargains" that you hear about are frequently mythical. The $1 yacht most likely has serious problems. For example, it may not have an interior or an engine. Remember, if it sounds too good to be true, it usually is. At many sales, the items are appraised prior to the sale and will not be sold if the bid price is below what is reasonable. For example, the Federal Supply Service of the U.S. General Services Administration has a policy to sell property at fair market value, and often will not sell items if the bid price is below what is reasonable.
You will not drive away from a Federal Government sale with a military jeep. In 1971, based on safety statistics and vehicle tests, the National Highway Traffic Safety Administration recommended that the M151 series vehicle not be sold to the public because it is unfit for public use. Therefore, M151 series jeeps cannot be driven. Disposal regulations on the M151 require that the vehicle body be crushed, shredded, or mutilated to prevent the jeep from being rebuilt. Businesses that sell the "secrets" of buying surplus military property often take out enticing magazine and newspaper ads. "Just send $19.95 and learn how to buy surplus military jeeps," they say. However, these advertisements do not tell the consumer that the M151 series is unfit for public use and that older jeep models, such as the World War II M38, are virtually nonexistent today. Jeeps are now typically auctioned at sales for scrap metal or parts.
How to complain.
If you wish to comment on the sales process used by Federal programs or on the merchandise purchased from a Federal agency, write directly to the sponsoring agency at the address listed in this publication. If you believe you have been misled by nongovernmental organizations offering information about Federal Government sales, you may send your complaint, along with any related information, such as a copy of the advertisement,
to: Federal Trade Commission, Correspondence Branch, Washington, D.C.
20580. While the FTC is unable to resolve individual situations, consumer experience is helpful in identifying patterns of deceptive trade practices and possible violations of FTC regulations.
In addition, the U.S. Postal Service investigates illegal activity which is carried on through the U.S. mail. Since most of the deceptive advertisements are placed in newspapers or magazines which use the mail service for distribution, you may also send your complaint to your local postmaster. Address your comments to: Postmaster, Your Town or City, Your State, Your ZIP Code + 9998.
The U.S. Postal Service and the FTC want to know experiences you have had with misleading advertising. However, they have no jurisdiction over the procedures and practices used by the agencies of the Federal Government that sell property to the public.
Other organizations that investigate and prosecute fraud include state Attorneys General, state and local consumer offices and Better Business Bureaus. If you suspect that you have been tricked or misled and you paid money for products or services that have little or no value, you can contact the above-mentioned organizations for further assistance. They are listed in the business or government listings of your local telephone directory.
AGENCIES WITH SALES PROGRAMS
Department of Agriculture
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
Department of Agriculture
Office of Operations
Centralized Excess Property Operation
3346 Hubbard Rd.
Landover, MD 20785
Department of Defense
U.S. Army Corps of Engineers
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
U.S. Army Corps of Engineers
Directorate of Real Estate
20 Massachusetts Ave., NW
Washington, DC 20314-1000
Department of Defense
What is sold
How items are sold
How are sales advertised
Special restrictions/conditions
For more information
Defense Reutilization and Marketing Service
National Sales Office
2163 Airways Blvd.
Memphis, TN 38114-5211
(901) 775-6428
Department of Energy
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
Federal Deposit Insurance Corporation
What is sold
How items are sold
How sales are advertised
Special conditions/restrictions
For more information
For information on FDIC sales, including listings of upcoming sales, write FDIC, Asset Marketing, at the FDIC regional office where you are interested in buying property. The specific states or regions covered by an office are listed directly above the address. Or call the listed telephone numbers and ask for Asset Marketing, Customer Service.
Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, and the Virgin Islands are covered by:
Northeast Service Center
111 Founders Plaza
East Hartford, Connecticut 06108
(203) 290-2000
Alabama, Delaware, District of Columbia, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia are covered by:
Southeast Service Center
285 Peachtree Center Ave., NE
Marquis Tower II, Suite 300
Atlanta, Georgia 30303
(404) 880-3000
Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin are covered by:
Midwest Service Center
30 S. Wacker Dr., 32nd Floor
Chicago, Illinois 60606
(312) 207-0200
Arkansas, Colorado, Louisiana, New Mexico, Oklahoma, and Texas are covered by:
Southwest Service Center
5080 Spectrum Dr., Suite 1000E
Dallas, Texas 75248
(214) 991-0039
Alaska, Arizona, California, Hawaii, Idaho, Guam, Montana, Nevada, Oregon, Utah, Washington, and Wyoming are covered by:
Western Service Center
25 Ecker St., Suite 1900
San Francisco, California 94105
(415) 546-1810
U.S. General Services Administration
Federal Supply Service
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
470 L’Enfant Plaza East, SW
Suite 8100
Washington, DC 20407
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont are covered by:
10 Causeway St., 9th Floor
Boston, MA 02222-1076
New Jersey, New York, Puerto Rico, and the Virgin Islands are covered by:
26 Federal Plaza
Room 20-112, Box 10
New York, NY 10278
Delaware, Maryland, Virginia (except Washington, DC metropolitan area), Pennsylvania, and West Virginia are covered by:
P.O. Box 40657
Philadelphia, PA 19107-3396
Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee are covered by:
Peachtree Summitt Bldg.
401 W. Peachtree St.
Atlanta, GA 30385-2550
Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin are covered by:
230 S. Dearborn St.
Chicago, IL 60604
Iowa, Kansas, Missouri, and Nebraska are covered by:
4400 College Blvd., Suite 175
Overland Park, KS 66211
Arkansas, Louisiana, New Mexico, Oklahoma, and Texas are covered by:
819 Taylor St., Room 6812
Ft. Worth, TX 76102-6105
Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming are covered by:
Bldg. 41, Denver Federal Center
P.O. Box 25506
Denver, CO 80225-0506
Arizona, California, Commonwealth of the Northern Mariana
Islands, Guam, Hawaii, and Nevada are covered by:
525 Market St.
San Francisco, CA 94105-2779
Alaska, Idaho, Oregon, and Washington are covered by:
400 15th St., SW, Room 1478
Auburn, WA 98001-6599
U.S. General Services Administration
Federal Property Resource Service
What is sold
How real property is sold
How sales are advertised
Special restrictions/conditions
For more information
Connecticut, Illinois, Indiana, Massachusetts, Maine, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Puerto Rico, Rhode Island, the Virgin Islands, Vermont, and Wisconsin are covered by:
10 Causeway St., Room 1079
Boston, MA 02222
(617) 565-5700
Alabama, District of Columbia, Delaware, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia are covered by:
Peachtree Summit Bldg.
401 W. Peachtree St., Room 2928
Atlanta, GA 30365-2550
(404) 331-5133
Arkansas, Colorado, Iowa, Kansas, Louisiana, Montana, Missouri, North Dakota, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, Utah, and Wyoming are covered by:
819 Taylor St., Room 9A33
Ft. Worth, TX 76102
(817) 334-2331
Alaska, Arizona, California, Idaho, Nevada, Oregon, and Washington are covered by:
525 Market St., 5th Floor
San Francisco, CA 94105
(415) 744-5952
Federal Property Resources Service-D, U.S. General Services Administration, Washington, DC 20405, 1 (800) 472-1313.
Government Printing Office
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
* To learn more about personal property sales, write or fax
(202) 512-1354:
Government Printing Office
Materials Management Service
Specialized Procurement and Sales Section (MMP)
710 North Capitol St., NW
Washington, DC 20401
Government Printing Office
Materials Management Service (MMPS)
710 N. Capitol St., NW, Room A340
Washington, DC 20401
Department Of Housing And Urban Development
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
Department of the Interior
Bureau of Land Management
What is sold
How the land is sold
How sales are advertised
Special restrictions/conditions
For more information
Alaska is covered by:
222 W. 7th Ave., #13
Anchorage, AK 99513-7599
Arizona is covered by:
3707 N. 7th St.
Phoenix, AZ 85011
California is covered by:
2800 Cottage Way, E-2841
Sacramento, CA 95825
Colorado is covered by:
2850 Youngfield St.
Lakewood, CO 80215-7076
States east of the Mississippi River, plus Iowa, Minnesota,
Missouri, Arkansas, Louisiana are covered by:
Eastern States Office
7450 Boston Blvd.
Springfield, VA 22153
Idaho is covered by:
3380 Americana Terrace
Boise, ID 83706
Montana, North Dakota, and South Dakota are covered by:
222 N. 32nd St.
P.O. Box 36800
Billings, MT 59107
Nevada is covered by:
850 Harvard Way
P.O. Box 12000
Reno, NV 89520-0006
New Mexico, Oklahoma, Kansas, and Texas are covered by:
1474 Rodeo Rd.
P.O. Box 27115
Santa Fe, NM 87502-7115
Oregon are Washington are covered by:
1300 N.E. 44th Ave.
P.O. Box 296
Department of Justice
U.S. Marshals Service
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
The U.S. Marshals Service reserves the right to reject any and all bids in a given forfeiture sale.
For more information
Office of Congressional and Public Affairs
U.S. Marshals Service
600 Army Navy Dr.
Arlington, VA 22202-4210
U.S. Postal Service
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
Texas, Louisiana, and Oklahoma are covered by:
Dallas Purchasing Service Center
7800 N. Stemmons Fwy., Suite 970
Dallas, TX 75266-7190
Michigan, Indiana, and Illinois are covered by:
Chicago Purchasing Service Center
433 W. Van Buren St., Room 930
Chicago , IL 60699-6260
West Virginia, Kentucky, Maryland. Washington, D.C., North Carolina, and South Carolina are covered by:
Greensboro Purchasing Service Center
Albert Pick Rd., Suite 300
Greensboro, N.C. 27495-1102
Washington, Oregon, Idaho, Montana, Wyoming, Colorado, New
Mexico, Arizona, Nevada, Utah, and Alaska are covered by:
Denver Purchasing Service Center
300 S. Parker Rd., Suite 400
Aurora, CO 80014-3500
North Dakota, South Dakota, Nebraska, Kansas, Missouri,
Wisconsin, Minnesota, and Iowa are covered by:
Minneapolis Purchasing Service Center
2052 Killebrew Dr., Suite 610
Minneapolis, MN 55425-1880
Tennessee, Arkansas, Alabama, Georgia, Mississippi, and Florida
are covered by:
Memphis Purchasing Service Center
1407 Union Ave.
Memphis, TN 38166-6260
Ohio, Pennsylvania, South Jersey, and Delaware are covered by:
Philadelphia Purchasing Service Center
615 Chestnut St., 15th Floor
Philadelphia, PA 19197-0592
New York City metropolitan area, North Jersey, Puerto Rico, and the Virgin Islands are covered by:
Newark Purchasing Service Center
60 Evergreen Place, 3rd Floor
East Orange, NJ 07018-2199
California, Hawaii, and all Pacific Possessions and TrustTerritories are covered by:
San Bruno Purchasing Service Center
850 Cherry Ave., 2nd Floor
San Bruno, CA 94099-6260
Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut,and New York (except New York metropolitan area) are covered by:
Windsor Purchasing Service Center
8 Griffin Rd. North
Windsor, CT 06095-1572
Superintendent
USPS
Undeliverable Mails
2970 Market St., Room 531A
Philadelphia, PA 19104-9651
Supervisor
USPS
Claims & Inquiry & Undeliverable Mails
1300 Evans Ave.
San Francisco, CA 94188-9661
Supervisor
USPS
Undeliverable Mails
180 E. Kellog Blvd., Room 932
St. Paul, MN 55101-9514
Supervisor
USPS
Undeliverable Mails
730 Great Southwest Pkwy.
Atlanta, GA 30336-9590
U.S. Postal Service
Consumer Advocate
475 L’Enfant Plaza SW, Room 5911
Washington, DC 20260-2202
Resolution Trust Corporation
What is sold
Residential, such as single-family detached homes, townhouses, condominiums, co-ops, timeshares, and mobile homes;
Commercial, such as office complexes, retail shopping centers, restaurants, hotels, resorts, multi-family apartments, and more;
Land, such as unimproved commercial or residential land, developed land, agricultural land, ranch or pastures, oil and gas developments, and more;
Financial Instruments, such as residential or commercial mortgages, consumer loans (secured and unsecured), leasing portfolios and securities;
Furniture, Fixtures and Equipment, such as art, banking equipment, computers, galley/restaurant equipment, office equipment, heavy equipment, storage and display fixtures;
Affordable Housing, such as single-family residences and multiple-unit dwellings. These properties are offered exclusively for 97 days to low-and moderate-income families (for single-family properties), and to low-income housing providers who set aside at least 35 percent of the units at restricted rent levels (for multi-family units). Seller financing is available.
How items are sold
How sales are advertised
Special restrictions/conditions
For more information
U.S. Small Business Administration
What is sold
How items are sold
How sales are advertised
Classified and display advertisements appear in local, regional, national, and international newspapers, and trade and industry publications. The SBA central office in Washington, DC does not maintain a mailing list of upcoming sales or of potential buyers who wish to be notified. However, local auctioneers and some SBA district offices may maintain localized lists.
Special restrictions/conditions
For more information
Tennessee Valley Authority
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
Department of the Treasury
Bureau of Alcohol, Tobacco, and Firearms
What is sold
How vehicles are sold
How sales are advertised
Special restrictions/conditions
For more information
Department Of The Treasury
U.S. Customs
What is sold
How items are sold
How sales are advertised
Special restrictions/conditions
U.S. Customs Service employees cannot purchase seized items. Certain merchandise is sold for "export only" and must be taken outside of the United States after purchase. Payment and deposit requirements are contained in the "Terms of Sale" in the sales catalog.
For more information
*Write or call:
EG&G Dynatrend, Inc.
U.S Customs Service Support Division
2300 Clarendon Blvd., Suite 705
Arlington, VA 22201
(703) 351-7887
Department of Veterans Affairs
What is sold
How the properties are sold
How sales are advertised
For more information
A FINAL NOTE
The information in this booklet is accurate as of June 1994. Because the sales programs described change over time, the U.S. General Services Administration encourages consumers to contact the sponsoring Federal agency’s local or regional offices for current sales information and specific details concerning the rules and conditions of sales. It should be noted that this guide does not include very small and specialized one-time sales. Also, state and municipal governments may have similar sales programs. Contact your local government offices for information on those sales programs.
GLOSSARY
TYPES OF PROPERTY
Personal property is the term used for all items other than real estate. It includes everything from office furniture to cars and jewelry. Most personal property sold by the government is used, and sold "as is."
Real property is real estate. It may include office buildings, houses, condominiums, apartments, undeveloped land, retail stores, industrial properties, and golf courses. Like personal property, the kind of real property available will vary among the sales programs.
Confiscated, seized, forfeited are terms which describe the status of property in the possession of Federal law enforcement agencies. The terms are not interchangeable. Property that is seized or confiscated may be returned to a defendant or innocent owner. If it is not returned, the property becomes forfeited and may become available for sale to the public. Therefore, advertising for Federal government sales will usually describe the property obtained through confiscation and seizure, as forfeited. This kind of property is sold "as is" and the inventory of sales items constantly changes.
Foreclosed property is sold when citizens default on loans secured by a government agency. The property, usually real estate, is sold to the public through government sales programs. The U.S. Small Business Administration, the U.S. Department of Housing and Urban Development, and the Resolution Trust Corporation all sell foreclosed properties.
Excess and/or Surplus property. Federal property no longer needed by an agency is declared as excess to the needs of that agency, but may be transferred to another Federal agency. Federally owned property which is no longer needed by any Federal agency is declared as surplus to the needs of the Federal Government. If not transferred to state governments, it is sold to the public.
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.
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.