Although online storage auctions are gaining in popularity, they are still considered illegal in certain states.
This is because the lien laws in those states have vague or outmoded language that requires the auction to take place at the storage facility or a “reasonably near public place.”
Although the Internet is arguably the most public place imaginable, the laws haven’t caught up with technology to conclude whether a virtual space can satisfy the legal requirements.
Many of our competitors simply ignore these laws and offer storage auctions in the restricted states anyway. Others opt to avoid online auctions in any state with ambiguous laws. We’ve decided to do something different, however – a legal alternative for states where storage auctions must be held in person.
What we suggest to storage facility owners in these states is to have the online auction run concurrently with the in-person auction. When you post the notice of the sale, be sure to mention OnlineStorageAuctions.com in the ad.
Open the online bidding early, and close it just before the in-person auction starts. Have the auctioneer open the in-person bidding at the high bid from online. If no one places a higher bid, the unit goes to the online bidder; if the in-person bidder makes the winning bid, he or she gets the unit instead.
It’s no secret that storage units sold online sell for 25% to 100% more than those held exclusively in person. By combining the two strategies, you can increase the amount you get for your units while staying in step with the law.
By advertising the online portion of the auction, you can ensure that more bidders opt for online bids, and the ensuing lower turn-out at the in-person auction will help things go quickly and smoothly. Best of all, since our service is completely free, you get to keep your money and deal directly with your bidders.
This ground-breaking alternative for self-storage auctions offers the convenience and high earnings of online auctions without the questionable legal issues faced by other services. Eventually, as online auctions become even more commonplace, the law may begin to catch up with technology and you can transition your facility to online-only storage auctions.
Please leave your creative thoughts in the comment box below.