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Storage Auction buyers thrive during Economic Downturn

By Derek Wood - Business Writer

Finding treasure during tough times has just gotten easier with Storage Auction Times. When credit shrinks, housing prices tank and foreclosures skyrocket, auctions at self-storage units increase and the quality of the things to be found – everything from furniture, electronics and vehicles to old books, used clothing and knickknacks – often improves.

 “In tough times, folks let go of the extra stuff and you can find some really nice items,” said P. Anthony Farina, an experienced auction buyer. “In the last year, already, there are more units per facility and the quality of the items has been getting better.”

“Also I have found that in tough economic times there is a much greater demand for used items. Just call any thrift store and ask them if their business is up lately.”

 Savvy on-line entrepreneurs who sell through eBay, Craig’s List and other Web sites know that storage auctions are a reliable source of low-cost merchandise, said Noah Davis, founder of Storage Auction Times.

 “But the problem has been finding out about the auctions,” Davis said. “You had to scour the newspaper for legal ads and hope you could find the auctions. Storage Auction Times gathers the information for you, and makes it easy to keep up with a rapidly changing market at www.storageauctiontimes.com.”

 Letters by Malcom X that fetched $1 million at auction, Paris Hilton’s sex tapes and a safe full of money are some of the more unusual and valuable items that have turned up at storage unit auctions. More typical quality finds include antiques, china, auto parts, old postcards, vintage comic books, photographs, jewelry, art, vinyl records, electronics, sports cards and other collectibles.

 A storage unit auction results when someone fails to pay rent for the space.  People store an amazing variety of things, from the valuable to the sentimental -- virtually anything you might see at an estate sale. But in the case of an abandoned unit, the contents become the property of the storage company, which holds an auction to clear the space for rental to a paying customer.

 Bidders, usually, do not get much of a chance to examine the contents of the storage unit. Generally, you’re only allowed to shine a flashlight in the space along with the other bidders a few moments before the auction begins. It’s “winner take all,” and winning bids can be as low at $1.00 or go up to several hundred.

 As more people grapple with a volatile real estate market, with many moving from houses to smaller living spaces, they will continue to put more belongings into storage. Self-storage has been booming since the mid-1980s, and is generally considered a “recession-resistant” industry. The Self Storage Association reported that space in storage units nationwide doubled to 2 billion square feet from 1998 to 2005.

The association also reports that storage unit auctions usually increase when the economy takes a downturn.

 While storage unit auctions can be a gamble, they’re also entertaining.

“The auctions are fun,” Farina said. “And you never know what you will find.”