Storage Locker Auctions

Most of us have heard of auctions. Various types are held around the country selling off specific items, random goods, artwork and a wide range of other properties that are of interest to men and women around the world. The storage locker auctions are a specific type of auction given by storage companies each month to help clear out space.

Basics of Storage Locker Auctions

Public storage companies that provide space, or storage lockers, for men and women to keep items that do not fit in their home or that they are uncomfortable keeping in their home often have auctions on items that are kept in the facility. The company sells off items from lockers or spaces where men and women have defaulted on their monthly payment.

Depending on the company and the number of defaulting individuals, the auction might take place once a month or less often.

The auctions allow buyers to purchase boxes from the company by bidding on them. Depending on the facility and the other customers, bidding amounts can be low or high in many cases.

The Seller Problems

The storage locker auctions are designed to help clear out space when men and women default on their monthly payment. As a large company, the seller is interested in continuing the flow of business rather than looking for valuable items.

One of the main problems with this strategy for the seller is the fact that many high priced items sell way below market value. In fact, most storage lockers are bid on at low prices that often only provide enough funding to pay for the delinquent account.

The sellers rarely make a large profit for the items in storage lockers because they do not look through the items during the sale process. As a large business that is highly profitable, retaining the personal belongings of individuals who default is a loss because the company is not making money at all.

Buyer Benefits

Storage locker auctions often benefit the buyers who are willing to take a gamble on the items stored within the lockers. The bidder can often receive the goods for a price that is well below the value of many items stored within the facility.

The seller’s problems of having to sell low and maintain limited profitability can benefit the careful buyer. The buyer purchases all of the items within the locker, so any valuable or relatively valuable treasures hidden within boxes are within the buyer’s right to sell and make a profit from.

The Buyer’s Gamble

While storage locker auctions can greatly benefit the buyer, it will always remain a gamble whether the items stored within are valuable or have little to no value when selling. The auctioneer does not allow buyers an opportunity to browse through the items stored within the locker to evaluate the potential value before winning the bid and paying for the items.

As a result, the buyer could end up buying a storage locker full of family photos, useless and ripped up baby toys and worthless junk that does not have any value and would not be worth selling.

Making a Profit

Though buyers are taking a risk by purchasing at auctions by not having an opportunity to evaluate the items beforehand, they also have the potential to make substantial gains and profits from the purchase. In many cases, the storage locker auctions will not have extremely high prices. As mentioned before, many lockers are sold at prices that barely cover the delinquent charges on the locker accounts.  This means that any valuable items that might be found within the locker are potentially worth a large profit when the cost of the items is subtracted.

The keys to making a profit on storage locker auctions starts with sorting out the items. The best way to sort is by making piles. The piles might include valuable items to sell online, difficult-to-ship valuable items that can list on websites like Craigslist and sell in the local area, semi-good items that can be given as a donation for tax deductions, and trash items.

In general, trash items will make up the largest portion of the items in a storage locker. It is the treasure among the trash that makes a profit and draws many buyers into the auctions in the first place.

Buying a locker full of goods from a storage company’s auction can result in major profits, but it should always be approached with the knowledge that valuable items are less common than personal items like family pictures. This type of auction is exciting, interesting and an affordable way to get started in auctions.