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How to Successfully Bid at Storage Unit Auctions

The show "Storage Wars" on A&E has provided an insight into the world of storage unit auctions. Gamblers and treasure hunters compete for entire storage units full of merchandise, and every day yields a valuable surprise. The real world of storage auctions is less sensational but equally as lucrative. Whether you are looking to augment a collection, make some extra money or start a business in secondhand merchandise, you can find the best buys through this venue.

Things You'll Need

$1,000 cash minimum
Flashlight
Padlock

Instructions

- 1
  
  Look for rare items of which you have knowledge that others might lack.
  
  Move to the front of the storage unit for a clear view. The auctioneer will briefly show the unit before bidding commences but won't let you enter the unit, open boxes or touch any items. Use your flashlight to identify items and estimate their condition, starting a mental tally of potentially valuable items inside. Move your vantage point to peek behind obstructions or under furniture.
- 2
  
  Small items of large value are often left behind in units that are packed full.
  
  Compute an estimated market value of items inside, taking the rough retail price and dividing by half. Account only for items you can see. Add the values for a total unit value. Add 10 percent if the unit is full and subtract 10 percent if you can see every item in the unit. A nearly empty storage unit implies it was picked through and any hidden valuables have been removed.
- 3
  Set your top purchase price with this formula: Take half the estimated market value and subtract $1 per mile of travel. This will cover your profit, gas and any overestimation made on resale value or condition of merchandise. This is a conservative approach and will keep you from losing money. As you gain experience, adjust the equation to suit your business model.
- 4
  
  Act hesitant when you bid. Others may back off.
  
  Bid hesitantly. The bidding will start fast and slow as the price rises. If bidding slows and the price is still below your top price, jump in. Do not seem eager and if you're overbid, allow the auctioneer to call twice before bidding again. Hesitate and other buyers will assume you are near your top price and begin to question the unit's value. Use this to your advantage and you can often get a storage unit for a bargain.
- 5
  
  Walk away as soon as the bid goes above your set top price.
  
  Walk away when the bid goes above your top price. It is not worth winning an auction if you end up losing money. Allow others to make these mistakes and you can hope for the next unit or at least go home with your money and a morning's worth of entertainment.

Antiquing