Storage unit Auctions in South Africa

A number online dealers make use of storage unit auctions to maintain their stock levels and keep the stock they have available for sale on-line.

A storage unit auction is often called by the owner or manager of the storage facility, usually to help him recoup what tenants are in arrears for and make the storage unit available for renting again.

Storage unit auctions have increased in popularity in South Africa, thanks to reality programs like Storage Wars. It seems to many to be a fun way to spend an afternoon and possibly make a few rand in the process.

We went along to one of the storage unit auctions to see what they are all about.

Bidding process

• Dependent on the auctioneers rules, it is common practice for auction goers to register and pay a refundable deposit
  
• Viewing of the unit before bidding starts, allows you a view into the storage unit but not to open any boxes or packages
  
• The auctioneer will opening the bidding by asking for a first bid, auctions move quite fast, participants will place their bids, adding value to the contents of the storage unit.
  
• The highest bidder will win the storage unit.
  
• Once he has paid, he generally has up to 48 hours to clear the unit, some storage facilities require the unit to be cleared immediately.

Do's and dont's of bidding at a storage unit auction

• Do make a budget and keep to it
  
• Put a 'cap' on the amount you bid, this will help you stay within budget
  
• Do not let getting caught up in the excitement of the bidding lead you of course
  
• Do make full use of your opportunity to view the storage unit.
  
• Do not bid just for the sake of bidding, evaluate the worth of the contents as best you can.
  
• Remember, the chance of a happy surprise is always there but so is the chance for disappointment.

Legalities of Storage unit auctions

The lien law of South Africa applies when a storage unit goes up for auction. The process to reach this point is simple, the lessee of the unit is notified if he is 14 days overdue on locker rent and if there is no response he is notified repeatedly every few days until a period of 63 days has lapsed. The law then makes provision for the owner of the facility to open the unit and sell it's contents. The lessee has until one minute before auction to catch up on his arrears and save his property from sale.

What can not be sold at a storage unit auction:

• Motor-vehicles ( cars, motorbikes, boats etc)
• Drugs and drug paraphernalia
• Alcohol
• Firearms

Storage Wars reality highlights value

The Storage Wars reality series has highlighted just what is considered valuable and just how easy it is for things to be forgotten, giving weight to the old adage, “out of sight, out of mind”.

The propensity for people to hang on to the strangest of items has been highlighted by Storage Wars, a reality TV program which airs on the DSTV History channel. The show revolves around a number of 'regulars' who attend the storage unit auctions and bid on the contents of the unit as a whole, after only being allowed to stand at the entrance of the storage unit and look in at the contents, no boxes or crates are allowed to be opened, in fact nothing is allowed to be touched. The Storage War thrill lies in not knowing what your purchase will finally turn out to be yet bidding on it with the aim of winning. It varies from the mundane to the ridiculous, passing by strange and occasionally the Mother Lode.

Storage Wars player wins big

Storage Wars participants all have their own tales to tell. Darell Sheets bid $3 600 on a locker only to discover a paintings by Latino artist Frank Guiterrez estimated to be worth a whopping $300 000. This kind of discovery only happens once in a very long while, there have however been many instances where people have doubled and even tripled their investment.

Storage war veteran Barry Weiss, is a collector of antiques and pretty much anything out of the ordinary, his bids on Storage wars seldom bring him riches but more often than not he bags a curiosity for his collection.

But it's not all gold and silver linings, storage auctions have their down and amusing sides to them, garbage bags filled with rejected clothes and even boxes of food, long expired, and occasionally a box of toys or something a magician might have used in his show. Generally there is something to put towards gaining back the investment, often there is not but the risks are worthwhile.