Television programs like the American docu-soap Storage Wars – Die Geschäftemacher are also extremely popular in Germany. The drama of storage unit auctions in front of running cameras may take place in several US cities, but similar auctions of stored goods also occur daily in Germany.
Selfstorage and storage unit providers use auctions when customers suddenly stop paying rent for the rented storage unit and are no longer reachable for the landlord.
In the following, we will tell you how the auction of stored goods works and what you need to pay attention to if you also want to participate in an auction.
What types of storage unit auctions are there and what are the differences?
In principle, there are two different types of auctions. Traditional auctions are led by professionally trained auctioneers, who organize the entire process from beginning to end, document it, and ensure that the sale is carried out in accordance with German law.
This type of auction is usually tied to a location and the physical presence of bidders is appropriate, even if often in the form of representatives. Classic auctions usually take place in auction houses and, as a rule, buyers can inspect the items they are bidding on more closely before the auction.
In classic auctions of storage unit contents, interested bidders can view the contents but not touch them. It is important to know that the items are usually stored in boxes or piled up in chaotic heaps, which makes evaluating the possible value considerably more difficult.
With the digital age, auctions have increasingly moved online, and the success of platforms like eBay has led even traditional auction houses to increasingly bring their items under the digital hammer in online auctions.
In online auctions, the auctioneer is replaced by the principle of time pressure. The seller determines the minimum value in advance and gives bidders the opportunity to place bids within a certain period of time. Whoever has submitted the highest bid at the end of the time period is the buyer.
In online auctions, bidders usually cannot personally inspect the offered items, but rely on images provided by the seller on the auction website. In exceptional cases, such as with particularly valuable items, bidders may, by arrangement, take a look at the offered goods.
In both classic and online auctions, the rule applies that the buyer must pay immediately after the bidding round ends for the auctioned goods. In connection with storage unit auctions, additional obligations apply that must be met in order to make the purchase valid.
What exactly is a storage unit auction and what must I consider?
Anyone who rents a storage unit, regardless of whether it is Selfstorage or an entire warehouse, generally commits to paying rent for it. In some cases, tenants of storage spaces can no longer or do not want to pay and leave their belongings in the storage unit.
In other cases, the rental agreement expires and the tenants fail to collect their stored items.
In both cases, the landlord has the right, after a certain period of time and after several requests to settle the amount owed or remove the stored items, to seize the items and sell them. The details of the rights and obligations of both the storage unit landlord and the tenant are set out in the rental agreements.
In the event of an auction, each unit is offered separately for sale. Storage units can consist not only of separate rooms, but also of containers, pallets, or parcel vans.
Bidders at an auction, regardless of whether it takes place online or with physical presence, must identify themselves and agree to the rules of the auctioneer or the online auction platform. This includes committing to pay if they submit a winning bid and receive the award. Refunds after a completed auction are generally not available.
Correctly assessing the value at a storage unit auction
For inexperienced bidders, an auction of storage units can appear confusing and sometimes unfair. After all, the offered items cannot be examined more closely. At auctions for separate storage units, you are not even allowed to enter the storage unit, but may only inspect the items from the doorway.
The appeal of storage unit auctions lies precisely in the fact that you do not know exactly what you will receive and the expectations that come with this uncertainty. The greater the surprise when you discover real gems among the auctioned items. However, in many cases, the auctioned goods can also turn out to be a disappointment if the amount you paid for the items does not match the actual contents of the auctioned storage unit.
Determining the value of stored items can be particularly difficult for newcomers to the auction field. Here are some tips on what you should pay attention to before bidding at an auction for storage clearance:
- Always try to visit the auctioned storage unit in person before the auction to get an overview of the condition of the items.
- Take a flashlight and binoculars with you to illuminate the items from the doorway and examine them in detail.
- Pay particular attention to labels, markings, and other features that may provide clues about the packaged items.
- Check whether there are boxes of well-known brands in the storage unit that may represent a certain value.
- Also look at the space and the general condition of the stored goods. Pay particular attention to mold, moisture damage, poor storage and organization of the items, which can significantly reduce the value of the items to be auctioned.
- Determine the type of items and draw the right conclusions from them. Do the items indicate private storage or is it a commercially used storage unit? Are there pieces of furniture, or do you suspect that the boxes contain used clothing, books, or junk? In commercially used storage units, you might suddenly end up with worthless, unsellable bulk loads such as boxes with 1000 birthday cards for 100-year-olds.
How to bid cleverly at a storage unit auction
After you have seen the contents of the storage unit, you must prepare for the actual auction based on your assessment.
When calculating, keep in mind that many of the stored items will ultimately have no further value for you. Be prepared to throw some things away or recycle them, or at best resell them at very low prices.
In the auction of stored goods, the aim is usually to acquire a few truly valuable items such as jewelry, electronics, tools, or coin collections at a bargain price.
Many professional resellers also form interest groups, especially at storage unit auctions, in order to minimize the level of loss and maximize returns. Therefore, antique dealers, antiquarian bookshops, sellers of used clothing, and scrap collectors often work together at auctions to divide the items among themselves after unpacking according to their areas of interest.
Based on your observations, consider all possibilities and set yourself a maximum amount that you do not want to exceed with your bids.
During the auction, it is important that you stick to this limit when bidding and do not exceed it. Auctions are not for the faint-hearted. Getting carried away in the heat of the moment could cost you a lot of money afterwards. Show discipline and, in case of doubt, let someone else pay a high price for low-quality stored goods.
What happens after I have placed the highest bid at an auction of stored goods?
After the nerve-wracking bidding and counter-bidding at the storage goods auction, you will hopefully emerge as the winner. Now the excitement is great, as you want to inspect your auctioned goods as quickly as possible.
However, before you start unpacking, especially in auctions of stored goods that are still located in the storage unit, you must observe some important requirements.
First, you must pay before you gain access to the auctioned storage unit contents. In a traditional live auction, you pay the amount you committed to with your highest bid to the auctioneer. In an online auction, you pay at checkout. Note that every bid is binding and you cannot suddenly regret it and withdraw from the purchase.
After that, you usually have between five days and one week to clear out the storage unit. During this time until handover to the storage unit landlord, you may inspect and touch the items, but not sell, dispose of, or recycle them. The purchase contract only becomes valid after you have returned the storage unit to the landlord in a swept-clean condition (besenrein – legally defined condition meaning empty and clean).
Only then is it time to truly take possession of your auctioned treasures.
