Storage Auctions is a business - buy products to earn a profit.
Before you buy a storage unit at auction, consider how much money you can afford to lose. High risks and a gamble because renter is not required to fill out an inventory sheet. What is inside a unit, at times, a mystery.
Note that 80% of the merchandise found in a locker holds little to no monetary value. About 20% of the items will produce a profit, on average.
Per rules of a live public sale: a person cannot touch any item, open any box, nor enter the mini storage unit. What you see is not always what you get.
You will need tools, transportation and tactics to really learn and understand this business.
Find an Auction
Old fashion yet trusted method, read the legal notices in the local newspaper. Lien laws in most states need a notice of advertisement prior to the sale of a unit. Or call a self-service storage facility near your area for date and times. Internet allows potential buyers to find public sales on a broader scale. Use a free auction finder website or subscribe to newsletters.
Basic Tools to Bring
Cash, flashlight, ropes to tie down merchandise, box cutter or knife, a pair of gloves, large heavy-duty garbage bags, broom, dust pan and a few padlocks. If the sale held outdoors, bring sunscreen and a hat. If multiple units up on the auction block, bring a small water-cooler with water or drinks and snacks, for the day may run long.
Transportation
Own, rent or borrow a pick-up truck. If possible, rent or borrow a 16-foot car hauler. Compact enough to enter public storage facilities yet spacious to move most of the merchandise found in lockers. For larger units, rent a small box truck with a lift gate.
Registration
Arrive 10-15 minutes prior to a scheduled auction. An individual must be 18 years of age to bid. Sign-in with the auctioneer or the facility. You must present a valid driver’s license or a government issued identification card or current passport. Ask if the storage company requires a nominal fee to enter and if they impose a 10% buyer’s premium. Know the amount of sales tax in that area. Also, ask for the cost of the security deposit, typically $50-$100 for it factors into the total cost of the unit.
Rules
Auctioneer will verbally state the terms of the sale beforehand, such as:
1. You are bidding on the entire contents of the units.
2. You may not touch anything inside the locker or enter inside.
4. This is a “cash-only” sale.
5. Everything sold “as is” with “no guarantees or warranties.”
6. You will have 24-48 hours to clean the unit to a swept condition.
7. Highest bidder wins.
Viewing Unit
Line formed as each person stands by the doorway entrance to view inside the container. Flashlights used to get a better look at the contents. Time limited, so it’s important to see clearly the face value of merchandise out in open to estimate budget for that locker.
Auction Chant
Auctioneers uses a rhythmic repetition of numbers and "filler words" during a live sale. First words, the current price then followed by the asking price to outbid.
Winner must pay for the storage unit in cash immediately after auction and all sales final. The amount owed includes the winning bid in addition to the buyer’s premium, plus the security deposit. The facility furnishes the buyer with a receipt upon payment. Winners responsible for locking the unit and remove the lock after all items are removed from locker.
Expect to Find
Not unusual to find an entire household of merchandise. However, most products consist of general household goods, furniture, electronics, clothing and personal records. Good containers yield money, jewelry, antiques, collectibles and brand new items.
Sort Merchandise
Size of the storage unit and the amount of merchandise dictates how long it will take you to sort through all the items. You may load the entire unit onto a truck and use another area to sift through products, such as a garage or warehouse. Or you may sort right there at the facility.
Wear a pair of gloves and have a box cutter or knife ready. You will sort piles of merchandise into several categories.
1. Profitable
2. Recyclable
3. Donate
4. Trash
Items of value place in first pile with care as not to break fine China or crystal. Donate clothing or check to see if brand or logo collectible. Broken or old appliances or electronics easy to recycle.
You will need a knife or box cutter to cut through anything wrapped or taped. Use caution when you cut into a box, for you may cut right into a valuable item.
Experience and knowledge helps determine difference between trash and recyclable goods. Imperative to achieve the best return for your purchase as you use every venue to flip merchandise into profit.
Haul items to dumpster an expenditure you want to avoid. Also, it’s against the rules of storage auctions to throw trash into the facility’s dumpster. Take time to investigate the product via Internet before you label it trash. Sort with care to garner a greater return for your purchase.
Note: Return all personal property that belonged to renter such photos, medical records, legal documents, personal documents, tax returns, bank records, year books, etc., to the facility. You are not legally bound to do so, but as a courtesy that the storage company may return said items to the original renter.
Clean Unit
After sorting or relocating all items from unit, time to broom-sweep clean. Use a broom, dustpan and have trash bags on hand. Sweep all debris and dirt from every corner of the container. Place trash in bags, however, you may not use the facility’s dumpster. Once the entire floor is broom-swept, remove your lock from the door. Have the manager inspect the unit that you may have your cleaning deposited refunded to you.
Sell Items
Multiplicity of methods to sell merchandise.
1. eBay
2. Craigslist
3. Thrift Store
4. Consignment Shop
5. Auction House
6. Swap Meets
7. Flea Markets
8. Garage/Yard Sale
9. Social Media
10. Vendors
And so on. The venues you choose depend on the environment in which you live. More populace the area you live in, more potential buyers at your doorstep. Regions with less industry or population, better to ship items to buyers.
Whether you become a storage buyer as a hobby or as a full-time job; understand the step-by-step process of buying a locker and selling its contents. Takes time and experience to understand the trends of what merchandise sells and what is collectible.
Conclusion
Research the internet and read books on antiques and collectibles. Follow social media sites on auctions, collectibles, antiques, thrifting, and so on.
Knowledge of the value of merchandise and the skill set of negotiations will assist you in this new endeavor.
ALSO
US Storage Auction Lien Laws
How Storage Auctions Work
