Government Auction Glossary

The terms you'll run into when buying government surplus, in plain English. Bookmark this — it covers fees, titles, condition codes, and the jargon each platform uses differently.

Buyer's Premium

A surcharge added to your winning bid, paid to the auction platform rather than the seller. On government platforms it ranges from 0% (GSA Auctions) to ~16.5% (PropertyRoom). GovDeals uses a tiered premium of 7.5–12.5% that shrinks as bid size grows. Always factor it into your maximum bid.

As-Is, Where-Is

The default condition of almost all government surplus. The item is sold in its current state with no warranty, no returns, and no repairs — and you collect it from wherever it currently sits. Inspect (or hire an inspector) before bidding, because once you win, it's yours regardless of condition.

Reserve Price

A hidden minimum the seller will accept. If bidding ends below the reserve, the item doesn't sell. Many government auctions are 'absolute' (no reserve), but some real estate and high-value equipment lots carry one. Listings usually say whether a reserve applies.

Absolute Auction

An auction with no reserve and no minimum — the item sells to the highest bidder regardless of price. Most GSA and municipal surplus lots are absolute, which is why bargains happen when few people are bidding.

Sealed Bid

A bidding format where you submit one confidential offer and don't see competitors' bids. The highest sealed bid wins when the round closes. The IRS and some federal real estate sales use sealed bids; most online surplus uses open ascending bidding instead.

Proxy Bid (Max Bid)

You enter the most you're willing to pay, and the platform bids on your behalf in increments only as high as needed to keep you in the lead — up to your max. Lets you avoid babysitting an auction. Standard on GovDeals, Public Surplus, and GovPlanet.

Bid Increment

The minimum amount by which each new bid must exceed the current high bid. Increments usually scale with price (e.g. $5 on a $50 item, $250 on a $20,000 vehicle). Set by the platform or seller.

Lot

A single auction listing, which may be one item or a bundle sold together (e.g. 'Lot of 30 laptops' or '8-pack of LMTV trucks'). GovPlanet sells in lots heavily; municipal platforms more often list single items.

GSA Auctions

The U.S. General Services Administration's official platform (gsaauctions.gov) for selling federal surplus — vehicles, equipment, electronics, and seized assets from federal agencies. Notably charges no buyer's premium.

DLA Disposition Services

The Defense Logistics Agency arm that disposes of U.S. military surplus. Much of its inventory reaches the public through GovPlanet (operated by Ritchie Bros/IronPlanet) — Humvees, generators, trailers, and comms gear.

HUD HomeStore

The official site (hudhomestore.gov) where HUD-foreclosed homes are listed for sale. Properties come from defaulted FHA-insured mortgages and sell as-is, often below market. Bids must be submitted by a HUD-registered broker.

Owner-Occupant Period

The first 15–30 days a HUD home is listed, during which only buyers who will live in the property (plus qualifying nonprofits and government agencies) may bid. After it ends, investors can submit offers. Designed to favor homeowners over flippers.

NAID (Name Address Identifier)

A HUD-issued ID number a real estate brokerage must have to submit bids on HUD homes. You can't bid on HUD HomeStore directly — your agent's brokerage needs an active NAID to place the bid for you.

REO (Real Estate Owned)

Property a lender or government agency took back after a failed foreclosure auction and now owns outright. HUD homes are a form of government REO. REO sales are typically as-is but come with clearer title than courthouse-step foreclosure auctions.

Seized vs. Forfeited Property

Seized property is taken by law enforcement during an investigation; forfeited property has completed the legal process transferring ownership to the government. Only forfeited (or unclaimed) items are sold at auction — through PropertyRoom, GSA, or the U.S. Marshals.

SF-97 (Statement of Vehicle)

The military's title document for a surplus vehicle, issued instead of a standard state title. You convert it to a state title at your DMV after purchase. Some states (CA, NY, NJ) impose extra requirements on ex-military vehicles, so verify before bidding.

Demilitarization (DEMIL)

The process of removing or destroying a military item's tactical capability before public sale (e.g. cutting weapon mounts, removing armor classification). Some GovPlanet lots carry DEMIL conditions or on-road-use restrictions — read the listing's compliance notes.

IronClad Assurance

GovPlanet/IronPlanet's inspection-report guarantee. Items rated under IronClad come with a detailed condition report the platform stands behind, reducing the risk of buying heavy equipment sight-unseen.

Condition Code

A standardized rating (often a letter or number scale) describing an item's state — from 'new/unused' to 'salvage/scrap.' GSA and military listings use condition codes; always read the code plus the photos, since codes are applied quickly and can be optimistic.

New-Buyer Probation Period

On GovDeals, first-time buyers face a roughly 30-day window during which total purchases are capped (commonly $1,000) until the account is established. Prevents non-paying bidders from winning big-ticket lots on day one.

Bid Deposit / Earnest Money

A refundable amount some platforms require before you can bid on high-value items (vehicles, real estate). It's returned if you don't win, or applied to your balance if you do. Common on GSA vehicle lots and HUD homes.

Pickup Deadline

The window — typically 10–15 business days — within which you must collect a won item from its location. Miss it and you can forfeit the item and your payment. Government storage isn't long-term, so plan transport before you bid.

Title (Clean / Salvage / SF-97)

Clean title: no major damage history. Salvage title: declared a total loss by an insurer (common at salvage auctions, not most government surplus). SF-97: military title statement. The title type heavily affects resale value and insurability — confirm it in the listing.

Penny Auction (what government auctions are NOT)

A predatory format where each bid costs money (via 'bid packs') and nudges the price up by a cent. Legitimate government surplus auctions are nothing like this — bidding is free, there are no bid packs or credits, and you only pay if you win.