Storage Auctions: Tips for Success
The buying and selling of property acquired through storage auctions has become a hot business as of late. This is due largely in part to shows like Storage Hunters, presenting the industry to millions of people who previously had no idea this type of business existed. But with this popularity comes competition, making it a little more difficult for serious buyers to succeed. If you're struggling to turn a profit in the buy-sell storage auction business, we have some tips to help you out.
Don't Bid on Every Unit
Newcomers often make the mistake of trying to bid on every storage unit they come across. I know you're probably eager to scoop up a unit so you can get a feel for this business, but you should choose your units more carefully. You have to remember that not all storage units contain items of value. In fact, many of them contain nothing but empty boxes and trash. This is why it's a good idea to save your bids for units that you KNOW have valuable items in them.
Bring a Truck
How do you plan on hauling your goods acquired through storage auctions? If you currently have a car, you might want to invest in a truck or van. Most self-storage facilities have strict rules stating that the winning bidder of auctions must clean out all items from the unit within 24-48 hours. Therefore, it's your responsibility to haul off large boxes, furniture, TVs, etc., regardless of whether or not it has value. Buying a truck is a smart investment that will allow you to move larger items such as this with greater ease.
Bidding For Success
Bidding is a key element in storage auctions. Rather than selling the contents of a unit for a fixed price, most self-storage facilities allow the public to place bids, awarding the unit to the highest bidder. If you're serious about this business (and you should be), you'll need to learn the tricks of the trade regarding bids. For instance, don't get suckered into bidding wars with other bidders. A bidding war occurs when two or more people continue to raise their bids in hopes of knocking the other out. Nine out of ten times, however, there's no real winner, as bidding wars jack up the price of a storage unit to the point where it's no longer profitable.