Making an offer for city-owned surplus real estate property for sale.
Important Property Information
These instructions are intended for non-economic development properties.
The City of Raleigh makes no representations as to unforeseen encumbrances on the property or exact property boundaries. Properties are sold "as is". The bidder must investigate the property for all liens, judgments, taxes, assessments, or other encumbrances that would attach to the property - including any possible encumbrance by the City of Raleigh. The City of Raleigh recommends that you consider retaining an attorney to do the research and provide you with a title opinion. The bidder has the responsibility to verify the property with regard to size, zoning, development potential, structural and mechanical, plumbing integrity, etc., to the extent, the bidder is satisfied and understands what is being acquired. The City of Raleigh Planning and Development department at 919-996-2682 can assist with interpreting Raleigh development regulations, ordinances, and codes.
Submitting an Initial Offer or an Upset Bid
- An initial offer or an upset bid for the city-owned property must be submitted in writing on a City of Raleigh Offer to Purchase and Contract form and must include a 5% bid deposit. Please read the entire two-page form, which includes the standard provision.
- The City of Raleigh conveyances are with a NON-Warranty deed only and may have development restrictions imposed. Read the offer form for any sales conditions.
- The written offer should be submitted with a five (5%) bid deposit in the form of a cashier's check or money order made payable to the City of Raleigh. Offers without deposits will not be accepted for consideration.
- Submit the offer form in a sealed envelope with the property address written on the front at the: Avery C. Upchurch Municipal Complex, 1st Floor Revenue Services Lobby, 222 West Hargett St., Raleigh, NC 27601. Initial offers submitted are confidential and will be reviewed by staff prior to making a recommendation to City Council.
- You will be contacted as soon as possible by Real Estate staff with the status of the offer submitted and if it will be presented for City Council review and approval.
- Currently, one initial offer is selected by staff to be presented to the City Council. If the City Council accepts the offer it is then subject to the upset bid method of disposition. Offer acceptance is not delivered to the bidder until the final Council action adopting a resolution authorizing the sale. Offers may be submitted by mailing the contract and good faith deposit to:
City of Raleigh
Real Estate Division
Attn.: Real Estate Supervisor
P.O. Box 590
Raleigh, NC 27602-0590
- OR -
Submit in person at:Avery C. Upchurch Municipal Complex
1st Floor Revenue Services Lobby
222 West Hargett St.
Raleigh, NC 27601
Upset Bid Advertisement
The City of Raleigh will advertise the Council-approved bid to the general public for a period of ten days (counting the day of advertisement) by way of a Public Notice Ad. The ad will run in a local newspaper (typically in the News & Observer in the legal ad section, but subject to change). The ad will indicate that the City will accept upset bids for a period of ten days beginning the day of the advertisement and until the deadline date indicated in the advertisement. The highest qualified upset bid received by the deadline date and time specified will be considered as an upset bid for purposes of re-advertisement. That highest upset bid will then be advertised with a new upset bid period stated. This procedure of advertisement will be repeated until no upset bids are received. Upset bids received after the time (indicated in City office) and date due as stated in the public notice ad will not be accepted. Upset bids are to be submitted in writing on a City Offer form and will be considered sealed bids. They will be opened and read at the end of the upset bid period.
Minimum Upset Bid Calculation
Each upset bid received must raise the advertised bid ten percent (10%) of the first one thousand dollars and five percent (5%) of the remainder (Re:NCGS 160A-269) An example of this calculation follows:
Advertised Bid = $100,000
To Calculate Increase
- 10% of $1,000 = $100
- 5% of $99,000 = $4,950
- Increase = $5,050
Add Increase to Advertised Bid
- $100,000 + $5,050 = $105,050
Minimum Upset Bid = Amount + $105,050
Upset bidder must bid a minimum of $105,050 or higher
Submitting an Upset Bid and 5% Bid Deposit
The upset bid must come in writing on a City of Raleigh Offer to Purchase and Contract form and include a five (5%) percent bid deposit in the form of a local bank cashier's check or money order. Upset bids are considered sealed bids and will be opened after the deadline time and date. Contact with bidders will be made within ten working days after the bid deadline to inform bid results and to return bid deposits as necessary.
You may submit your offer by mailing the contract and good faith deposit to:
City of Raleigh
Real Estate Division
Attn.: Real Estate Supervisor
P.O. Box 590
Raleigh, NC 27602-0590
-OR-
Submit in person in the office:
Avery C. Upchurch Municipal Complex
1st Floor Revenue Services Lobby
222 West Hargett St.
Raleigh, NC 27601
Note
Please be sure your bid is placed in a sealed envelope noting on the outside of the envelope the property you are bidding on and that this is an "Upset Bid for Surplus Property" because these bids will not be opened until the time advertised.
The winning bidder will be responsible for all advertising costs incurred by the City of Raleigh during the upset bid process. The advertising costs will be added to the purchase price at closing on the property.
The City of Raleigh conveyances are by NON-WARRANTY DEED.
The City Council may at any time reject any and all offers.