Jul 2, 2009 11:27 pm US/Eastern
Treasure Hunters Tap Storage Unit Auctions
BOSTON (WBZ) ―
The recession has given birth to a whole new breed of treasure hunters. They are searching for bargains among property abandoned in thousands of storage units across New England.
They are finding bikes, furniture, TVs, appliances even a motorcycle, all for pennies on the dollar.
The abandoned property can be found at storage unit auctions.
Check Auction Schedule
"They are a necessary evil for the storage industry," explains Justin Manning, president of Storage Auctions USA.
He runs auctions for storage companies who are basically evicting tenants who have not paid their rent. By law, these companies have the right to sell the contents to the highest bidder.
"Our company auctions approximately 10,000 units a year and that's growing based on the how the economy has gone," he said.
These auctions have been around for years, but they have become more popular in recent years as more people are falling behind on their payments.
HOW IT WORKS
Each person gets a chance to look inside the unit, but they can't go inside or move anything around.
That means there are usually items hidden behind stacked boxes or furniture. Many experienced bidders bring a flashlight to get a better look, but in the end, they are really just rolling the dice. Sometimes it does pay off. Manning said one buyer hit the jackpot at an auction.
"There was a Kawasaki motorcycle…that he didn't even know was part of a bid that he made for a couple of hundred dollars," Manning explained.
BUYERS BEWARE
But when ever you take a risk like that, there's a good chance you'll strike out. Manning said another buyer paid $600 for a unit because all of the boxes were meticulously clean and neatly stacked.
It turns out the owner of the unit had archived three newspapers for the past twenty years.
"It was literally boxes of newspapers that had no value," Manning said.
We saw one buyer pay $250 for a unit. He got a dining room set, an armoire, chairs and several other pieces of furniture. He says he'll ship it to the Dominican Republic and sell it at a profit.
"It makes a living," he said.
John Kerrigan of Burlington, Vermont is an antiques dealer looking for unique pieces he can sell in his shop. He hasn't bid on anything, but he's still hoping to hit the jackpot.
"Something you'd find on Antiques Road Show," he said.
If you win the bid, you have to take the good with the bad. That can mean disposal fees for outdated electronics, or old mattresses. Buyers also have to pay 10 percent of their purchase price to the auctioneer. If you are trying to re-sell, these fees can cut into your profits.
For Kerrigan, it's all about the thrill of the hunt. "Oh yeah, I get a kick out of it," he said.
Storage Auction Calendar
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