Purchasing goods at storage auctions and reselling them for a profit has been receiving a lot of publicity lately. It is not however an activity that you should jump into before you know what you are doing. Storage auctions arise from the fact that when somebody stops paying the rent on a storage unit, the storage unit company needs to sell off the contents of the unit so that it can free up space and rent it to somebody else. Most storage auctions however do not allow potential bidders to spend much time checking out the contents of a specific unit and therefore it is very easy for auction bidders to end up paying too much. Should you be interested in attending a storage auction for the first time, here are a few important tips to remember.
Learn to Make Educated Guesses About A Storage Units Value
- First off consider where the storage unit is located. If the storage unit is near a high income area, chances are higher that the storage unitís contents belong to a high income family.
- While you probably wonít get a chance to look through the boxes, consider how well the boxes have been placed and organized. Do they look like they have just been thrown in or have they been carefully arranged in an organized fashion.
- Check out the boxes themselves. Do they have brand names? Are they the boxes that belong to an expensive moving company? Do the boxes look new or do they look like they have been collecting dust for years?
Donít Get Over Excited
It is very important not to get emotional when bidding at a storage auction. Even if you are almost certain that the contents of a particular unit is valuable, you cannot know for sure and if you bid a significant amount on one unit, you could be gambling more than you can afford. It is important to remember that any losses you make on one unit will be subtracted from the profits that you make from reselling the contents of another. Always look at the big picture when trying to resell for a profit, you need to be happy to let some units go.
Have a Transport and Storage Plan
Not only do most storage auction companies require you to pay in cash immediately, most are not exactly generous when it comes to the amount of time that you have to clear the unit. You will often be given as little as forty eight hours to empty and clean a particular unit. Therefore before making a bid, know where you are going to temporarily store the contents and how you are going to get them there.
Have a Resale Plan
Remember that if you do not have much storage space yourself, you will have to pay to store items while you look for a buyer. The cost of storage can seriously cut into your profits, therefore it pays to know where and when you can sell items before you purchase them. If you find that particular items take a long time to sell, consider this when bidding on them. And after you win an auction, donít be afraid to throw out or donate to charity items that you know are not going to sell.
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