Storage unit auctions have been around for quite some time now, but it’s only recently that people have begun paying more attention to the potential profits of a well-stocked storage unit.
Many people wonder why private companies are auctioning off storage units. Well, the answer is simple: the original renters of the storage units have not been good customers. If the monthly rental payments have not been forthcoming, storage unit companies have no other choice but to levy a foreclosure on the storage units.
If the renters still don’t pay their dues, the private company that owns the storage facility will announce a storage unit auction in the local papers. Once word gets out that two or three storage units are up for grabs, both novice and seasoned auction hunters flock to the scene.
Sometimes, an auction will get cancelled half an hour before it is set to begin, because the original renters suddenly arrive to pay their monthly rental. Storage unit companies cannot continue an auction if the renter pays up; in such cases, all auction hunters must move on to the next storage unit that is up for auction.
Unlike estate auctions, storage unit auctions are less formal – all bids are given verbally, and the people just stand around a storage unit that is being auctioned off. The highest bid will, of course, be the winning bid.
The storage unit manager then requires the winning bidder to pay for the storage unit that he has just won.
Usually, winning bidders only have up to two days to clear out the contents of a storage unit, so it is best if you drive to the storage unit auction on a truck or a van, as you will need all the space you can get to haul away the contents of a storage unit.
When you attend a storage unit auction for the first time, you should ask whether the auction is live, blind, or sealed. There are marked differences between these types of auctions. A live auction is the most popular type of auction, where an auctioneer/storage unit manager guides the crowd of bidders to the various units that are up for auctioning.
Each storage unit is opened so that the bidders can take a look at what’s inside. After a time, the auctioneer begins the auction with a minimum amount (such as $50 or $100), and the bidding commences. The bidding is done verbally, and the person with the highest bid wins the storage unit. The group of bidders then moves on to the next storage unit.
A blind auction happens when the storage unit remains closed to the bidders until a winning bid emerges. Blind auctions are much more risky than live auctions, because you have no idea what’s inside the storage unit.
The third type of auction is the sealed auction. The storage unit is shown to the bidders, but no verbal bidding takes place. Bidders write their bid on a piece of paper, and the papers are then placed in sealed envelopes. The envelopes are given to the auctioneer, and the auctioneer opens the bids, one by one. The highest bid wins, and the group moves on to the next storage unit. The downside to sealed auctions is that you often have to over-bid to win a potentially profitable storage unit.
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