County uses Internet to sell off surplus property
By Scott Nicholson
nicholson@wataugademocrat.com

Watauga County is turning to the Internet to get revenue from its unwanted property.

The county has been using GovDeals to serve as an “online auction house” for its surplus property and has generally been seeing higher returns on the goods that are sold. Costs and the amount of staff time spent in handling the surplus, unwanted items have also decreased.

The county commissioners approved the use of GovDeals.com in May, and since then the county has used the auction site for a couple of rounds of sales. County finance director Doris Isaacs said the county administration and her office has been pleased with the results and it promises to get even better as more local governments and shoppers discover the site.

Traditionally, local governments gather lists of surplus property from various departments and then hold occasional public auctions to get rid of the stuff. The county has sold vehicles, hazardous-materials equipment, furniture, grounds-keeping machinery, and other items through GovDeals, and Isaacs said one of the advantages is that the customer base is much wider than the county and that helps in selling more obscure items. It also cuts down on the need for storage space and limits the amount of staff time spent handling the property. Isaacs said sometimes an item would have to be moved three times before it was sold, and GovDeals buyers usually must make their own shipping or delivery arrangements.

“We’re really in the initial stages,” Isaacs said. “On average, the items we’ve sold through GovDeals have sold for more money than we would get at public auction.”

After each department makes its list of unwanted, outdated, or used-up items, the list is sent to the finance office for compilation. All departments get to see the list of items in case they need anything for their own use, and then the list goes to the county commissioners to be declared “surplus” as required by law.

One of the initial concerns was that local taxpayers, who in many cases had purchased the items new through their property taxes, would be cut out of the loop and not have a fair chance to buy the surplus property.

However, Isaacs said there had been no complaints, as anyone with Internet access can bid on the property, and the list of surplus items appears on the county’s Web site.

Isaacs said some people lamented the loss of the live auctions, which were a combined social outing and bargain hunt for many. Isaacs said usually between 50 and 60 people would attend the live auctions, which were held once or twice a year. But the local private demand for items like computers, copiers, and specialized equipment was limited, so the move to the world of Internet selling made good fiscal sense.

GovDeals works in much the same way as the popular online marketplace eBay, with GovDeals taking a 7.5 percent commission on each sale. GovDeals started six years ago to focus solely on government surplus and now has built to 1,400 clients nationwide, including 219 different governments and public agencies in North Carolina. It’s endorsed by the North Carolina Association of County Commissioners and the N.C. League of Municipalities.

Blowing Rock has joined GovDeals but has yet to hold an auction there, while the town of Boone currently doesn’t generate enough surplus property to make the online market an attractive alternative. Isaacs said New River Behavioral Health Care had asked the county about GovDeals and may also begin using it to sell surplus property.

The participating agencies send descriptions, photographs and information about the items to GovDeals and the seller is able to set many of the terms, such as method of delivery and the length of time that bids will be taken. A minimum bid is also established.

Isaacs said a few comparisons show the county benefiting from the use of online sales. For example, chairs that normally fetched $2 or $3 apiece are selling for $10 to $20 online. GovDeals has a process to ensure bidders and buyers are legitimate, and Isaacs said Watauga’s surplus items are bid on by people all over the eastern United States, with one bid placed from Illinois.

The county determines the minimum bid based on a projected fair-market value and then establishes the increments for upset bids. The county put three lawn mowers on the site with a $50 starting price and the bid as of Monday was $201, with three days left on the auction. The two riding mowers and a push mower have elicited 36 bids and, under the terms of the sale, the buyer must pay within five business days of the auction’s end and remove the property within 10 days.

During a public auction last year, the county sold a 1996 Ford F-150 for $700 and a 1993 Ford F-150 for $125. This year, the county received much higher online prices for two similar trucks, with a 1994 F-150 bringing $1,536 and a 1993 Ford F-150 bringing $1,271. So far this year, the county has generated $9,150 in GovDeals auction revenues.

Some counties have become much more aggressive in their use of GovDeals. Buncombe County has sold $540,670 worth of surplus goods this year, while Wayne County has generated $534,926. Fifteen counties have raised more than $100,000 this year through the site.

GovDeals.com has dozens of searchable categories, and shoppers can browse without registering. Bidding requires a simple registration but is open to the public. A link to county items listed on GovDeals can be found at www.wataugacounty.org.