Storage unit auctions
By Aaron Broverman • Bankrate.com

Someone defaulted on their storage locker and now the vultures are descending. The bidders have only minutes to assess the value of the locker in question before a live auction takes place right there on the spot. Those vying for a piece of the action cannot touch anything or go inside the locker to inspect its contents; they can only place a bid based on what they can see just beyond the threshold of the open door. The bids start flying fast and furious.

If you're familiar with this scene, it's no doubt because of the spate of storage auction shows on television these days. From "Auction Hunters" to the smash hit "Storage Wars" and its latest spin-off "Storage Wars: Texas," the popularity of these shows has generated unprecedented interest in the storage auctions game, changing the way storage facilities across Canada do business and translating into slim pickings for former auction regulars.

While this may be reality television, there's a lot the cameras don't show.

Not as seen on TV
Vancouver's Marty Kramer had been bidding on storage lockers for ten years and selling the contents to auction houses, but retired two years ago, in small part, because of the popularity of "Storage Wars."

"It's not like it used to be when five or six people would show up," says Kramer. "It's not like it is on TV where they say, 'Oh, look what I found.' You can't get everything in the locker. The odd time you'll find some jewelry or some family heirloom, but for the most part, it's just generic pots, pans, clothing and books. Family heirlooms and photos, deemed personal by the storage facility, must be returned to the original owner, so the facility doesn't get sued."

Kramer's most recent 'diamond in the rough' was some packed tool cabinets he found in the back of a locker that he'd bought for $1,050 and managed to sell for $6,000 -- but he'll tell you it's mostly a crapshoot nowadays.

"The owner of the locker has every chance to make their payments and recover their stuff. Sometimes, when it's too late, you'll even see the owner bidding to buy their stuff back. By the time the auction happens, most have already taken their valuables out, which their well within their rights to do, and left all the junk for the auction."

Unseen expenses
Add to that the cost of getting rid of that unwanted junk and storage auctions become less about opportunity and more about work for an unconnected amateur. "You obviously pay for the bid and if it's done by a bona fide auction company, they charge 15 per cent, plus a buyer's fee and taxes," says Kramer. "Sometimes it's a flat fee, but when they add it up on TV and say, 'This locker cost me $100,' it was probably more like $127."