Millions of Americans have been exposed to self-storage auctions thanks to shows like “Storage Wars” and “Storage Hunters,” but few actually understand what they entail. So, if you’re considering participating in storage auctions, read on to our expert advice on what to expect.
First and foremost, we will never organize an auction in our businesses. It’s an awful but essential process that we must complete each month in order to recoup some of the money owing to us and, more significantly, to free up the units so that new customers may use them.
If this is your first time attending storage auctions, here are some pointers that you must keep in mind. So let’s begin.
How do Storage Auctions Work?
Each year, roughly 80,000 storage auctions are performed across the United States.
To make up for any losses made over time, many, if not all, self-storage firms may sell or auction off the contents of a customer’s unit.
Storage auctions are frequently the consequence of a lien, which is defined as “the authority to detain property belonging to another person until that person’s obligation is paid.” If a debt is not paid after a certain period of time, the right of lien allows storage facilities to sell a customer’s items to cover the accrued debt. Storage auctions, on the other hand, seldom generate enough revenue to pay the rent owed as well as the costs of hosting the sale.
Because auctioning is both expensive and time-consuming, many institutions view it as a last choice. Because an auction is nearly always a “money-losing prospect” for them, most self-storage providers encourage you to pay your monthly rent on time.
When an auction is held, the storage business will sell the contents of the collection unit to the highest bidder, usually by holding a free public auction. If the sale to the highest bidder does not pay the total owing by the prior storage unit owner, the remaining balance will most likely be sent to a collection agency. If the sale comes in more money than expected, the surplus will be remitted to the prior owner as required by law.
Now as if you are clear about the working of storage auctions, let’s move on to see the tips and tricks for first-time storage unit auction goers.
Tips for First Time Storage Auctions Goers
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It’s Not Like You’ve Seen on TV
Keep in mind that this isn’t a reality show, and most auctions aren’t as spectacular as they appear on television. They may, however, be enjoyable if you know what to look for and how to proceed.
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Attend Your First Storage Auctions as an Observer
This is the ideal time for you to observe and learn. You may get an idea of what to bid on and how to bid by looking at the auctions. Keep track of which sorts of units receive the most bids and which don’t. You may also keep track of how many units are up for auction and how many bidders are in attendance.
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Always have a flashlight with you
For most experienced bidders, a flashlight is a necessary. A flashlight can help you see further into the storage container and into areas that you wouldn’t be able to see otherwise. We are not allowed to enter the storage unit until it has been sold by law (neither are the bidders). You are also unable to touch anything. So, if you really want to see what’s in there, you’ll need a flashlight.
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Be an Astute Storage Auction Purchaser
Bidding can occasionally reverse and then reverse. Don’t be scared to make a lower offer than the starting bid. We usually place a beginning bid at a price that we believe is fair based on what we observe in the storage unit. We do, however, wish to sell it so that we may rent it to a new customer. This indicates you have some influence over the bidding process.
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Begin small
Purchasing a complete storage unit might be a daunting task, especially if you have never done it before. Once you’ve won the auction, you’ll need to remove all of the items from the storage unit in a short period of time, usually the same day. It might be a difficult undertaking if you purchase a huge storage unit with items stacked to the ceiling or if you purchase many storage units. As a result, we recommend that you begin your first encounter by purchasing a unit that is not very large or opting for a smaller one.
If you want to start largely because you saw something (or a few things) you just had to have, you may sign a rental agreement for the storage unit and give yourself up to a month or more to empty it out if you don’t finish within the time limit.
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No stone should be left unturned
Examine every item in the storage unit you acquired at auction since you never know where you could uncover a treasure. Feel into the pockets of your jeans, look inside drawers, and turn the pages of books. Check every nook and crevice of each item to ensure you haven’t forgotten anything important. Then you may pick what you want to keep, what you want to sell, what you want to donate, and what is actually trash.
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Before you go to a storage auction, make a plan
You must have a plan in place for the items you purchase. You could wish to save certain items, donate others, sell others, and discard the rest. Make sure you have a place to store everything (or rent the storage unit for a month or two so you can take some time to go through it). Contact your local shelter to discover what goods they need or would accept if you want to give some of it. Have a strategy in place if you wind up with a lot of rubbish. This might entail phoning the local dump or paying a fee for a waste hauler to come to your storage unit or house to collect it.
Final Thoughts
We strongly advise you to attend a self-storage auction if you have never done so before. It may be fascinating, and you could uncover something of great value for yourself or someone you care about. Just be realistic and don’t expect to unearth a $1,000,000.00 antique coin.
Visit the StorageUnitAuctionList.com internet page for details and the auction schedule at all locations and our partner facilities if you want to learn more or attend your first auction. You can also get in touch with us if you need more information.
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