There is so much abandoned equipment out there right now a buyer must be aware of who owns the equipment they are buying.

Today, more than ever I can remember before, the ‘price’ is the most important part of the decision when purchasing used or surplus equipment. We continue to get inquiries and RFQ’s for different pieces, but just when you think the deal is about to be finalized, more often than not, we get the call telling us they found another one for just a bit cheaper. In my world (Brokerage/ Auction), there are very small cost margins as everyone has had to adjust to accommodate the terrible downturn we are in. So, when you get the call telling you they have found a cheaper deal, you really have to wonder. Did they get one like what you have offered or did they go with a lesser unit? Recently, more often than not, they went with basically what you are offering just in ‘rougher’ shape.

One thing the buyer needs to be aware of is the ownership issue. In Alberta, we have the Alberta Boilers Association. As long as the forms are up to date, this will prove ownership. Unfortunately, this only applies to pressure vessels. There is so much abandoned equipment out there right now a buyer must be aware of who owns the equipment they are buying. Accumap is a good source as it will tell you who owns the well, which in turn will give you the proper owner’s name if you are buying from the lease. Then, you can at least try to track them down.

We haven’t run across too many times where a seller is trying to pawn off a piece of equipment that is different than what they say. I always get the question, “What happens if we buy this piece, move it to our site, connect it, and it doesn’t work?” I strongly believe the best money spent usually in the whole deal is for an inspector!

The old saying, “You get what you pay for,” has never been more relevant than today. Don’t get me wrong. There are some sweet deals out there, and with a tight budget, you have to be patient. However, also remember there is quite a bit of equipment that might not meet standards, and you could be getting the short end of the stick. My advice always is spend the extra $500 – $1,000, and get the piece inspected. It may be the best money you have spent. I’m finding most of my customers are just trying to make a fair deal.

I might be stepping out of turn, but there is money out there, and those who have it are smart shoppers. As a seller, I don’t think you have to give stuff away. You just have to decide there is going to be tighter margins then there have been in the past. I would much rather sell in a market where both buyer and seller walk away thinking they made a great deal. That can still be the case, but just be careful!