Why Do Online Storage Auctions Get Bad Reviews?

Why Does ST Get Bad Reviews Header
At StorageTreasures we are always looking for ways to do better and one way we do that is by looking at messages we get from our bidders. They can sting a littlebut it helps us learn our areas for improvement so we can give you a better experience with online storage auctions. Here is a recent Facebook Messenger conversation that may help answer concerns you might have about using StorageTreasures. Thank you, Sara Beth, for allowing us to share your message! 

Sarah Beth 

Good day!! 🙂  I am new to this (I haven’t even placed my first bid yet as I am still in the “investigation” part of this journey), so please hear me out.  I was totally stoked about getting into something like this as a side hobby, but reading the reviews kind of has me a little skittish.  Instead of posting something publicly and allowing a whole bunch of negativity to bombard me, I wanted to come to you directly and ask about the process.  Why so many negative reviews? The good ones are superb, but the negative ones are definitely an eyesore for anyone who is thinking about doing something like this.  Could you please take the time to enlighten me on this? I know there are a million sides to every story. Getting duped is not something I would ever willingly sign up for.  Please take your time to respond🙂 I’d rather have this explained to me instead of ignored or just a quick response.  Thanks so much!! 

StorageTreasures Response: 

Sarah Beth:Storage auctions are not for everyone. A lot of people get into the business, hoping to have a great big windfall right out of the gate. While that might happen on TV, that is not really how it works in real life. You can find some great units out there. There are also some units you might pay little for but make a lot of profit. However, the vast majority of the units do not contain hidden treasures.  To be successful at buying and reselling storage units, you have to do your homework and prepare. You need to know what you are looking at and how much you can make in return. It is not a guessing game, where you buy the first cheap unit you find and make a ton of money.  A lot of people think the managers go through the units before they put them up for sale. While I am sure there are dishonest people in self storage, like every other business, by-and-large, the managers don’t care what is in the units. They don’t have time to go through the units.  

Read More: I Had the Winning Bid and Bought My First Storage Locker

From what we have seen, many self storage tenants are aware they are going to stop paying their bill and take all the stuff they want and leave the rest behind. Most of our career buyers are looking for quantity rather than quality, but always hoping for that big win. They need inventory to sell in their shops or at the flea market.  A lot of people also don’t realize you have to clean out the entire unit. This means you might have to make trips to the dump, which will cost you more money. You might also have to rent a truck to get the unit cleaned out by the deadline. A truck might also cost you money. You might have to take time away from your regular job or your family to get the storage unit cleaned out. There are personal and monetary expenses to buyers after storage auctions People think storage auctions are a quick and easy way to make money. It is NOT quick or easy. It is a lot of work, and it might take you a while to start seeing profits. The good units will sell for a lot of money, leaving you feeling like you can’t get a good unit. You can get a good unit, but it takes time, dedication, and hard work to be successful in this business. A lot of people do not realize this and end up disappointed rather quickly. It takes a little while to build up your “finesse” at buying storage units. I hope this helps. 

Sarah Beth:  

Oh, it does for sure.  I work full-time and also run a drug recovery ministry, so it’s not all about profit for me. It would be something fun and then also a way to sell a few things here and there, but also be able to bless people (which would be the best thing for me).  I was just so concerned when I saw the rude/negative comments.  My idea (please let me know if it’s a bad one) was to get just a small unit as my first one (I know about the $100 refundable cleaning deposit as long as it’s cleaned out and all that good stuff) to test it out and I planned to do maybe one unit a month?  I am not out to get rich or anything. Just something fun and, in the end, possibly provide something worthwhile to someone in need. 🙂 I just wanted to make sure that before I even attempted that it was worth even trying out.  Thank you so much for answering my inquiry so thoroughly. 

StorageTreasures Response:  

You could get some units pretty cheap with clothes, household items, shoes, toys, and other things people need. You have to try and see how it works for youAs long as you do what you are supposed to do (pay, clean out the unit on time, etc.), you will be fine! Sarah Beth:  Awesome!! Thank you so much!! StorageTreasures does not want anyone to have a bad experience using our website. However, we know that is probably not possible in this type of business. There are going to be sales that do not have spectacular results. There is a lot of money at stake for a lot of buyers. We do welcome your questions and comments by posting directly to Facebook or Twitter, messaging us, or contacting our Customer Support Team. We want you to talk to us, and we want to be the best we can at responding and trying to help you have the best buying experience possible!  To reach StorageTreasures Customer Support, call (480) 397-6503 or email support@storagetreasures.com 

How to Find Storage Auctions

Find Storage Units Online scaled

At StorageTreasures, we get a lot of questions about how to find storage auctions. We get a request through our “Help Center” on our website, from our social media accounts, and also right here on our blog. We wanted to give you a comprehensive list of great places to find storage auctions and to find StorageTreasures auctions.

1.  www.AuctionZip.com

This website drives a ton of traffic to our website every day, so we know people look here for their auctions. The website is very user-friendly, as well. You go to their website and type in your Zip Code (or Postal Code), hence the name AuctionZIP. You can put in a mile radius of how far you are willing to travel, select from a long list of categories of auctions, or use keywords for the type of items you like to buy. The easiest way to find StorageTreasures auctions is to select the Storage Auctions category. The best news is; it is free to search for auctions on AuctionZip.com.

2. GlobalAuctionGuide.com

Global Auction Guide has been listing auctions for about five years now. It is also free to search their website for auctions. You can find online storage auctions or live storage auctions. You can search by location, date, or use a keyword, but the best part of Global Auction Guide is you can search by Company name, making StorageTreasures auctions easy to find.

3. LocateAuctions.com

Locate Auctions is the new kid on the block, but they have a lot of great auction listings. You can search by keyword, categories, auction type, or state. You can also browse their list of registered auctioneers or auction companies. Locate Auctions also has a great blog with all sorts of tips and information for bidders.

4. Your Local Newspaper

In most states, storage laws still require operators to advertise all lien sales in a Newspaper of General Circulation. You can try to find the legal ads on their digital version, or you can subscribe to the major newspapers in your county.

5. StorageTreasures.com

This suggestion might seem obvious or silly, but we have a lot of users who come to our site, and they don’t know how to find storage auctions near them. If you don’t already have an account, you can create one using the button in the upper right-hand corner.

StorageTreasures Account Setup

Once you have registered for your account, you can search for auctions from our homepage.

Find Storage Auctions on StorageTreasures

How Online Storage Auctions Work: Your Guide To Great Bids

online storage auctions

What Are Online Storage Auctions?

An online storage auction is an auction involving defaulting automatic storage units. Typically, tenants fall behind in their payments or leave items behind causing a default. Each state requires a certain amount of delay before the unit can be auctioned, typically within 30 to 90 days.

Defaulting storage units are then auctioned for the highest bidder to recover the rental fees the storage company has lost. All items are sold in bulk like the entire unit, not sold separately. With the mass price of the units, their chances of making a profit are high, leading thousands of people to participate.

How Do Online Storage Auctions Work?

Regardless of which site you choose for your first bid, online storage auctions are similar across the board. When you start your search for the first time, you’ll notice a few things about each drive listing right away:

A selection of photos: Each listing will include a photo of the storage drive or maybe even some, depending on the contents of the drive.
Remember that the storage drives that are full will include content that you cannot see. This is why it is important to read the listing carefully before bidding.

A time limit: Each auction will only last a certain period of time. This time limit varies according to the website and the wishes of the storage company.

Description: Each unit will have a description of what appears to be included in the listing. The auction company or storage company will do its best to communicate an accurate representation of what is available.

Location: The location of the storage unit will always be listed with the company name. Some sites also include the storage company’s time schedule so that you can guarantee withdrawal.

Capture time limit: You only have a certain amount of time to clean your storage drive. This varies depending on the company of the storage drive and most is only 48 to 72 hours after purchase.
Some other things to keep an eye on are a cleaning deposit, the size of the drive and the value of the current bid. During the auction, bidders will bid and withdraw until the auction ends and a winner receives the unit.

Bidding for the First Time

First thing first, you need to choose a platform or a website. Most sites require you to sign up before bidding. After that, you’re ready to go.

When searching for a drive, be sure to re-check the location and content to ensure it’s exactly what you’re looking for; there’s no way back after you buy a storage drive. Once you find a drive that you’re happy with, you’re ready to make your first bid.

Most auction bids occur in increments each time, which means that you cannot place a bid that is only $1 higher than the previous bid. Most sites require a minimum bid of $10. You can stick around and bid manually or you can choose to place a proxy bid, that is, set a maximum bid and the system bids to keep it at the top until it reaches your maximum bid. Setting a proxy bid allows you to continue with your daily tasks without checking the auction too often.

You will continue to bid until you reach the maximum or until you win the unit. In case of your win, you will need to take the necessary steps to pick up your items and pay for your unit. Most companies will require a cash payment at installation; however, some allow you to pay with a debit or credit card.

Be sure to pay for your unit in a timely manner. You run the risk of losing your unit if you don’t pay on time.

Before you visit the facility, here are some tips to keep in mind.

Call first: Call the facility so they know when to wait for you. Make sure you are there before the time limit.

Bring some tools: You will want to bring garbage bags, gloves and other cleaning tools to help you move your items. Boxes are a great idea too!

Bring a truck or trailer: You will have many items to pack and take with you. Be sure to bring a truck or trailer with plenty of space.

Bring a padlock: If you need to leave and come back later, you’ll need to lock your unit.

Online storage auctions are a great way to find some amazing bids without participating in a physical auction.

Storage Auction Legal Issues – Q and A

Legal Issues Q A

Q: Do we need to check for liens or are they legally owned now by the winner of the auction?

A: Always good to know what you are buying at a distressed “as is” sale. However, it usually does not matter with vehicle and boats over 10 years old. You can do U.C.C. lien filings online in the name of the tenant if you are concerned.

Q: Do the Auction rules supersede the rules of the state that the auction is being held?

A: The auction rules will supersede most state rules. State laws governing auction sales are default rules and govern when there are not auction rules (a contract) that governs the issue. For example, if the facility rules state that the sale is final when the amount bid is paid to the owner and the property is removed from the space, that rule applies.

Read More: Uplifting: Father’s Portrait Returned to Son by Auction Winner

Q: If you don’t clean the room out within the time frame but instead, rent the room from the facility, can the contents still be purchased back by the original owner?

A: NO. Once the unit is paid for and possession is taken by the high bidder (especially if the unit is leased by the high bidder), the sale is completed.

Q: Normally on a sale of a unit, the amount of the normal rent would be recuperated and the additional amount would go either to the tenant or to the state. What if a unit is sold but the buyer doesn’t show up in 48 hours or whatever time allotment is given. Can the operator keep the deposit and other fees and still collect the normal rent amount from the secondary bidder, or is the amount kept by the operator limited to the amount of normal rent and everything else goes to the original tenant or the state?

A: BY Bid rules, you are entitled to keep the first deposit. You are also entitled to collect the second deposit and the purchase price for the goods. If ALL monies collected exceed ALL the expenses of sale plus rent owed, the tenant is entitled to recoup the proceeds. If the tenant doesn’t recoup the proceeds some states require that the funds be paid to the state, other laws allow the operator to keep the proceeds after a period of time.

Q: I bought a unit at a self-storage auction and was sued by the prior owner. I was disappointed that the Storage association did not offer help. I spent thousands in legal fees!

A: The SSA does not get involved in direct actions like you have described. But the law typically provides a direct defense when tenants make claims against the buyers of their property after foreclosure. I hope you won!

Q: What if unit contains a large amount of hazardous materials that a dangerous to handle does seller assume any liability in their description of contents?

A: This is a distressed sale and you purchase the contents at your sole risk. Buyers need to be aware of this. You take the risk that the property you purchase has no value or could cost you money to dispose of legally. If you determine the space contains toxic material you could just walk away from the sale. However, you may become involved in litigation over who is responsible for legally disposing of the property. If you suspect the space has a trace of toxic materials, do not bid on it.

Q: What about things like stock or bond certificates, etc.?

A: If you discover these items in an abandoned space, many time you are able to convert the abandoned certificates into your name. But it depends.

Storage Auctions vs Safe Deposit Auctions

what happened when 48 million worth of gold bars were stolen from an armored truck on sunday

As a platform for storage auctions, we’re familiar with the phenomenon of abandoned items. Storage lot owners retain property left behind by delinquent tenants; in order to clear space and generate revenue, they hold auctions.

State governments also require cash flow to fund public works and institutions. Lottery tickets represent a popular business model; taxes, not so much. A lesser known approach to generating public funds bears resemblance to storage auctions. Three years after people abandon safe deposit boxes at banks and credit unions, the items are turned over to the state.

As an example, Arizona maintains an entire website devoted to unclaimed property. The site serves as a means for property owners and their heirs to find missing items. It also announces auctions where buyers can bid on remitted property.

Read More: What to Do With Important Documents Found in Storage Units

Storage Auctions vs. Safe Deposit Auctions: Which Is Better?

Comparing storage auctions to safe deposit auctions is like comparing apples to oranges. With storage containers, there’s usually an element of mystery, an exciting gamble for a prize. With safe deposit auctions, states list specific items. Obviously, they tend to be valuable by virtue of having been stored in a bank vault. People generally store different types of items in safe deposit boxes than they do in storage lockers. When you win a storage auction, you find yourself the proud owner of a large quantity of items — their quality partially or entirely unknown.

Call us crazy, but that’s part of the fun! Depending on what draws you to storage auctions, you might enjoy exploring this other avenue of bidding on abandoned items. On the other hand, you might prefer to stick with the treasure hunt that accommodates a lower budget and satisfies a thirst to search. Storage Treasures is your hub for live and online storage auctions.

Buyer Rights: What You Need to Know

what you need to know about storage auctions

When dealing with storage unit auctions, always educate yourself on the facility, buyer and seller rights. While generally the same, these rights can vary from one location to the next. Before participating in a physical or online storage auction, review all the essential clauses and information regarding that particular auction. This will help you avoid problems later on.

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