Editor’s note: This is the final print installment of local author and art dealer Aaron LaPedis’ four-part column series. LaPedis will continue to respond to questions about collectibles at . He also will speak on July 28 at Colorado Free University. Details on that appearance are at .
People who are good at buying and reselling other people’s goods have found yet another way to make money in a bad economy. Storage-unit auctions have been going on for almost as long as there have been storage facilities.
Many people make a living out of attending storage-unit auctions; some do it as a sideline. Either way, it can make big money. But remember, if it were easy, everybody would be doing it.
How does a storage-unit auction happen and why? Unfortunately, that is an easy question to answer. Typically, the person renting the unit doesn’t pay rent for 90 days. On the 91st day, the owner of the storage facility places the contents of the unit up for auction. These auctions can be a treasure trove of valuable items, or you can wind up purchasing a unit full of junk.
Storage-unit auctions are easy to find. Just call storage facility owners and inquire when they are holding their next auction. Many storage-unit operators use independent auction companies to conduct the sales. Find out the name of the auction company and ask to be placed on their e-mail list. Auctioneers usually handle many different storage facilities, so knowing this can make it easy to find additional unit auctions. Also, check newspapers and the Internet to locate auctions.
Plan to bring several items to a storage unit auction: a large flashlight, a mirror on a long pole, a knife, good work gloves, a padlock and a truck to haul away all your new treasures.
The auction begins quickly. First, the person in charge of the auction cuts the lock on the storage unit and gives the buyers five minutes to see what’s behind the door. Make sure that before you bid you look into the unit with your flashlight and mirror to see if the contents have any value. Look closely for items that can show value like antiques, tools, bikes or a safe. Realize when you buy the contents of a unit, you need to include the value of your time into the equation. This step will help you properly determine what you should pay for the contents.
Your next step is to have enough cash to buy the contents of the storage unit. I have seen units sell for as little as $10 and as much as $5,500. Remember, if you’re the winner, it is up to you to clear the contents of the entire unit within 24 to 48 hours.
Many people make big money because their newly purchased unit contains computers, guns, bikes, antiques or other great items. But if you’re a person who chooses poorly, you could end up with worthless items such as a dirty mattress, old clothes or magazines. Even if you don’t like what you just purchased, the unit is now your responsibility. So bid with caution.
After you buy the contents of a storage-unit auction, it’s important to determine how you are going to turn your storage-unit contents into big money. Unwanted items can be sold for a good markup at flea markets, garage sales or on Craigslist. There are also auction houses that allow individuals to consign their new items in weekly or monthly auctions. These auctions can be beneficial if you don’t have any storage space of your own and need to move the items quickly.
Here’s an important point to remember: these companies take a percentage, roughly 15 to 30 percent, of the final sale. If the item is valuable, think about placing it on eBay first in order to get the most money for the piece.
There are going to be some items you find in your newly purchased unit that have little value — like clothes, bedding and newer books. These things, if in good condition, can be donated to one of your local charities.
Storage-unit auctions are a delight for true treasure seekers. But don’t let the excitement of an unknown fortune make you spend a fortune.
Aaron LaPedis is an experienced collector and author of “The Garage Sale Millionaire.” Do you have a question for LaPedis about buying and selling antiques and collectibles? E-mail it to living@denverpost.com.
