Online storage auctions tend to earn anywhere from 25% to 100% more revenue than auctions held in person.
While this makes some bidders nervous, it’s definitely a good thing for the storage companies and auctioneers involved in the bidding.
If you’re uncertain about getting involved in online storage auctions, you may be wondering what makes their bids go up higher than the auctions you’re accustomed to.
Here are a few reasons:
Bidders have more time. This one of the primary reasons why storage units sold online sell for more than they would at a traditional auction.
The average virtual auction runs for a week or more. During this time, bidders have plenty of opportunities to research the units, contact possible buyers, gather resources and consider their bids. They also have more time to develop a connection with the unit, which means bidding might become more personal for them.
The auctions have more visibility. Bidders from surrounding cities and even neighboring states might check in on storage auctions that they otherwise wouldn’t bother to attend. And everyone knows, a higher auction turn-out means higher bids.
The units look better. When you’re at a public auction, you only have a few minutes to look inside, and you may not be able to see everything. If you’re bidding online, you’ll be able to look at a high-resolution image. You can zoom in and thoroughly inspect everything. This makes it easier to guess what kind of profit you can make on the units.
There’s fewer units to choose from. Until online auctions become mainstream, there will be fewer auctions held online. This means that bidders have fewer units to choose from and will focus more energy on those units.
Right now, it’s in a seller’s best interests to put auctions up online. They earn more money for storage facilities and are quick and convenient to run when compared to live auctions. Buyers may believe that they can’t benefit from these pricier auctions.
However, this is not the case: Every reason for the higher bids is a double-edged sword. Bids on virtual auctions are high because they are convenient for both buyers and sellers.
As long as you practice smart bidding strategies – bidding only on what you can see, bidding within your budget and only bidding when you can make a profit – you don’t have to worry about what other bidders do.
In the long-term, as virtual auctions become more common-place, prices will begin to even out and buyers and sellers alike will be able to profit from these highly efficient auctions.
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