1. Your typical auction- These usually start with the complex owner starting at some small arbitrary number, for instance $5 is the minimum bid. This usually happens when there are a lot of people in attendance, when the owner does this it is for one of two reasons.
One, he wants to get rid of the unit as soon as possible, it may be he has someone already interested in renting out the unit, and if he starts the unit at a high price, people may not buy it, and he would be left with a lot of merchandise.
Two, he suspects that the merchandise has a high value, and wants a lot of bidders to get into the action. Once you get started bidding, it is hard to back down, and the complex owner is hoping for this.
You can usually tell his reasoning behind this decision just by looking at the merchandise.
>>>HINT<<<
These types of auctions usually lead to big profits,
if there are few people at these auctions, you may
get some incredible deals.
2. The next kind of auction is quite popular; Make Me An Offer these usually happen when there are a small number of people in attendance or it seems like the majority of the items are junk. These are a little bit more relaxed, because if you only want one item, you don’t have to bring home everything in the unit.
The owner will let you know that you can go through the unit, and if you find something interesting you can make an offer.
For example, you dig through a couple of boxes and find some old baseball cards, you think they have a value, so you bring them to the owner, and tell him how much you are willing to pay.
>>>HINT<<<
NEVER tell the owner the absolute highest you
are willing to pay, you are looking to make a deal.
The owner, needs to get rid of everything, so you
are at an advantage. If you think a box of
baseball cards will get you $200, and you are
willing to pay $100 start the bidding at $25 or
lower. Chances are the owner will not know the
value of these cards or any other merchandise for
that matter and you will be able to get some good
deals.
Or for another example, say you find a TV in the corner of the unit, (I once saw three in the same unit!) since you can’t plug the TV in anywhere, you are again at an advantage, offer the owner a low price. You can’t be sure if the TV works or not and always remember, the owner needs to get rid of the items in the unit, he just wants his money back he is not looking to make a fortune.
3. An extension off the Make Me An Offer auction is the Price Tag sale, following the same lines above, the owner will be selling items individually, but instead of making an offer, a price tag will already be placed on the item.
>>>HINT<<<
Just because the item has a price tag on it, don’t
think that the owner won’t haggle, and try not to
show too much interest in the item. Or you will
end up paying more.
4. A less common auction is the Minimum Bid auction, these usually happen, if the complex owner needs the full amount of money lost on the unit back, they also usually have an abundance of resalable items inside.
These auctions can start at any price but they are often times a lot higher than the first type that I mentioned.
For example, one auction I went to, they had three units being auctioned off. The first unit had a minimum bid of $150 and was filled with a lot of power tools, and automotive related items. The next unit had minimum bid of $200 and was filled with a wide assortment of items.
The third had a minimum bid of $250 and was filled front to back top to bottom with boxes, and they were all full of random things, it is amazing what people will put in these units.
Now these minimum bids may seem high, but remember with a lot of these items you can make your money back 5-10 times, or in my case 300 times it all depends on what is inside.
5. Another type of auction is the Sealed Bid auction, these are commonly used when there are a good amount of people in attendance, and the owner is looking to get the maximum amount of money he can out of this unit.
These types of auctions are usually run along these lines. You are given access into the unit where you are given a set amount of time to look around, and dig through things. Once everyone had their time to go through the unit it is auctioned off.
The complex owner will hand out sheets of paper where you write the maximum you are willing to pay for the unit, and hand it back to the owner.
The owner will then look at all the offers; he may or may not read them, and then will take the highest offer. If you had the highest bid you win!
There really is no trick to winning these kinds of auctions, just write down what you truly think the unit is worth.
6. This type of auction is similar to the first, except instead of auctioning off the whole unit at once, the owner will bring out individual boxes and auction them off one at a time.
You will often find good deals this way, but if while going through the boxes, you come across something valuable, this type of auction may hurt you. When that valuable item is brought to light everyone else will also see it, and some may recognize it as valuable.
If you get into a routine of stopping at the same auctions each month, you will usually notice the owner having the same type of auction each time.
Remember always ask the owner how the auction will be run, because each might be run a little different, and you don’t want to be left behind.
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