ONLINE AUCTIONS FOR STORAGE FACILITIES
Walt Cade Auctions is a live and online auction company, allowing storage facilities to have their choice of auctions. This can eliminate the live auctions or enhance an existing live auction.
Are you ready to post an auction?
Before you have an online auction you have to make sure to follow the lien laws in your state as normal, the only difference is you must state the auction is being held online at Walt Cade Auctions (where you would normally have your address) and choose the ending date.
Prepare to Send to us
Once your lien notices are sent out you can cut the locks, take as many photos of the unit contents as possible, and put a locking ID tag in place on the unit. Go to the section on our website marked "Post an Auction"
For other information our email is email@example.com
Getting higher bid values
Photos should be in landscape position
Photos should be taken with flash ON – whether inside or outside
Take up to 6 photos:
Note: It is a good idea to name your photos to match your unit #'s ie: 23a.jpg 23b.jpg 23c.jpg where 23 is the unit number and the letter after is a different photo, to make it easy to match units. We are not responsible for mixup of photos if you fail to properly label them.
1 = Main photo of total unit contents (standing back from unit door)
3 = Photos dividing storage unit into 3 sections as you face it.
1 = Photos of anything that seems to have high value
1 = Photo of security lock with its’ number to show unit was re-sealed
Selling your storage units.
Once the time runs out and your unit sells, the winning bidder is sent an email to contact you.
We will charge their credit card a non refundable bidder deposit (aka Our Fee of 10%) + we will also charge them a Buyer's Premium, and send them an invoice to bring to you to retrieve their unit which will be 90% of their bid price.
This is the amount they will pay you. The buyer must contact the facility within 48 hours. All you need do is collect your balance.
How much does it cost?
The fee to use Walt Cade Auctions is minimal. Once a storage unit sells, We will deduct our commission, a non refundable bidder deposit (aka Our Fee of 10%). If the unit does not sell, there is no fee.
We will remove it from auction with no charge up to 24 hours prior to auction close. The cancellation fee after that is $10, which will appear on your next settlement statement and deducted from the proceeds.
What about sales tax; who takes care of that?
You should collect any sales tax at your office..
What if they leave stuff behind?
Why would you leave them alone? They made an appointment to pick their items up, we recommend you be in attendance while they remove their items. They now own the contents and you should make suire they do so without the now former tenant interferring. Make sure they dont leave without taking everything. If they want to leave and return or want a gate code, then maybe a deposit is in order.
If they leave items behind in the unit, just send us the information at Report a Bidder and we will deny them future bidding until they pay you for any expenses you incurr in emptying the unit.
Please note that photos are required to make your impact.
What about a cleaning deposit?
Let us know if you want to do this. Normally, we discourage cleaning deposits. This is your choice. In some situations it may be necessary.
Can we set a minimum bid?
The minimum bid for all auctions is $5.
Auctions posted online are exclusive to Walt Cade Auctions.
This is the only place bidding will occur. If you have interested buyers please direct them to create an account on WaltCadeAuctions.com and they can bid in fair competition on the site. Any advertising or that which is required by law will be your responsibility and must include that the auction is being held online at WaltCadeAuctions.com.
How many units must we have to put up for auction at one time?
There is no minimum or maximum number of units for your auctions.
What if we find an error in any lot or unit on the auction?
It is your responsibility to make sure that all photos and descriptions are correct. You should check them the day your auction goes up for accuracy. We are not responsible for
any errors or misstatements on the posting of your auction.
Can we sell manager or abandoned units on Walt Cade Auctions?
If so, how much time are they posted online for? You can post these units. In this case the timing is entirely up to you as the lien notice has no effect.
What if a sale "falls through" or we are unable to collect payment from the bidder?
(Bidder ignores our calls, doesn't show up, etc.) We will relist, and deny them future bidding.
How long are units usually up for auction?
For Texas Chapter 59 Seized units, We recommend 7 Days and to run Sunday to Sunday, but it can be at least 16 days if needed. The amount of time the auction is posted is up to the facility.
What if we have units that did not sell?
In most states they remain unsold and you must re advertise and relist them.
Why am I not getting bids? Why are my units not selling?
We seldom have units that dont sell. When we do it is usually because of bad or poor photos, and or bad or poor
descriptions. It takes time to make your auction look it's best. If you dont take time, it may cost in the end result.
Give us a call and lets discuss ways to improve your auctions.
Can we auction vehicles on your site?
Yes, you can auction vehicles on our site. You would just need to follow all lien law processes as you would for a live auction before posting.
How do we get paid?
Simple, we charge the buyer 15% and you 10%, as an example if the winning bid is $100 we add our Buyer's Premium to the invoice of 15%
then charge them, in this case is $15 + $10 = $25 and send them an unpaid invoice to bring to you and pay you $90.
What if the unit receives no bids?
We would suggest a relist.
What if the Auction Company does not get paid?
We do hold the facility responsible for any unpaid Buyer Premiums, a non refundable bidder deposit (aka Our Fee of 10%), Or Fees Due the Auction Company. (Seldom Happens if Ever)
The winning bidder didn't shown up to empty their unit. How can we handle this situation? Do we have to hold another auction or can the unit be sold to the next highest bidder?
Our online auction rules state that all bidders have to agree in the course of signing up to bid that bidders must agree to abide by as a condition of bidding, so you would have the right to sell to the second highest bidder, which we automatically do when possible.
I use online auctions. What if there are no bidders? Is “no-bid” the end of the road and I can clean out the unit and throw the things away?
No, according to the Goldbook and as in the opinion of Connie Heyer, TSSA Legal Counsel, whether your sale is in-person or online, you need a bid from an actual buyer to satisfy the Chapter 59 auction requirements. Chapter 59 of the Property Code governs self-storage auctions and requires owners to conduct sales: “according to the terms specified in the notice advertising the sale and sell the property to the highest bidder.” (Emphasis added.)
Most owners who use online auctions monitor their online auction bidding, especially as the bidding period wraps up. If it looks like there won’t be any bids before the end of the bidding period, they will bid $5 or $10 so that there is a sale to satisfy the statute. (You could also enter a $5 or $10 bid at the beginning of every auction to cover this scenario. If someone else bids higher, great! If not, your original bid is in place to prevent the no-bidder scenario.)
You could try and take the position that there were no willing buyers so there is “nothing of value to the ordinary person” in the unit–which helps qualify the unit as “abandoned” under the TSSA lease. However, in my opinion, it is much cleaner and “safer” (so to speak) to avoid any potential argument over value by simply bidding $10 yourself and having the sale satisfy the Chapter 59 requirements.
Online Auction Cancelled, When can we charge the auction fee to a tenant’s account if we are having an online auction? We post our online auction a week before the “sale” date to give bidders time to look at photos and bid. If we cancel our online auction after it is posted, then we are charged a fee by the online auction provider. Can we charge the auction fee the day the auction is posted so the tenant would have to pay the fee to bring their account current and stop the auction (if they make payment in that final week before the “sale”)? Also, our auction fee is more than the online cancellation fee because the fee was created to pay a live auctioneer before online auctions were added to the statute. Is that ok?
As of 2018, according to the Goldbook and as in the opinion of Connie Heyer, TSSA Legal Counsel, the TSSA lease charge for auction is labeled as a charge for “conducting” a foreclosure sale at public auction. Lease revisions are being considered to address sales that get pulled down, but under the current language, my advice is to charge this fee only if an auction is actually carried out. If you want to charge a fee for posting a unit for auction (this fee could cover your administrative costs, any set-up costs from an online auction site and any termination fee from the online site if you remove the auction), then you can list the fee in TSSA lease paragraph 6–Special Provisions. For example, “Charge for posting foreclosure sale at public auction (due if auction is posted but not conducted): $X.”
Walt Cade, CAI, ATS, BAS, CES, TxLic# 16645 LaLic#1726
305 D K Ellis Rd, Longview, Tx 75602, Phone: 903-738-7821
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Walt Cade Auctions.