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In this case, the door is opened and all bidders simultaneously write down their sealed bids so that no participant knows the bid of any others. Then, the highest bidder wins and is notified on the spot or sometimes at a later date. That is where the seller sets a minimum price that they will not let their items sell below. This type of practice works in other types of auctions, but for storage auctions it usually means trouble.
It is simply a charge to do business with that auction company. Remember that income from any type of auction and consignment sales is taxable unless certain exceptions are met.
Income from these sales is subject to sales tax the same as any other retail or service business. You must report a gain from the sale whether or not you operate a business. This is the income above the original cost of the item. Always consult a licensed accountant for tax advice on the matter. Like the luck I had one day.
Every storage unit has a story. Many parts of the country have houses with no basements and no room to store excess items. People use the units as an extension of their living space when they grow out of their closets and attic space. Sometimes the story is a life-changing one. Divorces, deaths or job losses can cause people to downsize their living quarters and need additional storage.
In the same way, some life-changing experiences can cause people to acquire more. College students move away and then back home with additional belongings. People also use storage units for both business and personal records.
Sometimes a storage unit is used as a giant closet for seasonal clothing or holiday decorations that are not in use. Or, there may be a number of other circumstances that prevents the renter from paying: In the United States, most self-storage facilities hold storage auctions or lien sales to vacate non-paying tenants according to their enforcement rights that are outlined within the laws of each state. They just want the space emptied and to recoup any lost fees or rent. After the auction, strike up a conversation with the winners.
Talking with seasoned bidders can shorten your learning curve and help you avoid making some common mistakes. Watching several auctions without any money can also teach you about bidding strategy, as well as how to spot when someone is trying to take advantage of you. They do this to discourage new bidders, as payback for a past wrong, or to maintain their reputation.
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If they stop bidding entirely after their initial bid, you know it was just a run-up. The only way out of this is to renew the monthly contract with the storage facility to buy some time.
Questions to ask yourself include:. That can take a considerable amount of time, which is why you should have a list of places where you can sell or dispose of items. This will help you identify valuable antiques and collectibles when you come across them in a storage unit.
Sometimes a storage unit will be mostly vacant, with only a few boxes or pieces of furniture. For your first auction, only bid on the smallest units with a decent amount of stuff inside. This will give you a chance to get into the process of moving, storing, sorting, and reselling items without becoming too overwhelmed.
As you gain more experience, you can work your way up to larger units. There are several items you should bring with you to an auction.
Fantasizing about what might be inside that towering stack of boxes or tucked away behind that old refrigerator can cause you to overbid on a unit and lose money. A better strategy is to only bid on the items you can see. Imagine the unit you win has a box of photographs, old birth certificates, love letters, and an urn full of ashes. These are items that you should return to the storage facility, who will then try to return these personal items to the family of the previous renter. When it comes time to start the sorting process, wear plastic or rubber gloves, pants, and a face mask.
Items will likely be dirty and dusty, and you never know what a box contains until you open it. When you start going through items, be meticulous. Go through pants pockets, riffle through book pages, open drawers, and look for hidden nooks and crannies. That said, it can still be a great way to earn a solid side income, especially once you gain experience and start building relationships with storage facility owners, auction houses, and other people who can help you resell the items you find.
It can also be downright fun. Have you ever bid on a storage unit? If so, what was your experience like? Did you find trash or treasure?