Since the hit show Storage Wars claimed its fame, the world of storage unit auctions has greatly changed. Many have found out this seemingly secret world, in false hopes that they can easily turn one man’s trash into cash.
With these misleading “reality” bites, newbies experience a lot of surprises. That’s why they end up going to an auction with a bad unit or simply wasted money.
One of such is what they call a “reserve”. Learn more about it here.
You go into an auction and there’s just one unit up for bidding. The highest (and willing) bid so far is $80. The facilitator then tells the bidders than they need to go higher as there is a minimum price for the specific unit.
The facilitator asks for at least $250 for the unit. He eventually gets that but the others seem to be puzzled with what happened.
The situation illustrates what reserve is. This is the minimum price of a unit that a facilitator pre-determines even before the auction starts.
When the facilitator hasn’t accomplished having someone bid for the desired price, they can keep asking for it until they get at least the minimum reserve price.
In the following states, this is legal:
- South Carolina
While this can be such a pain to newbies who aren’t aware of this reserve price, it does happen in the above states. If in any case you feel like this is a scam the facilitators are conducting, you can always ask the help of the authorities
Being a rookie in this industry is a big deal. There are a lot of real-life situations (such as this) that are not shown in various TV series.
So be vigilant and explore everything there is about storage unit auctions to save you all the trouble.