For many, the thrill of buying at auction is the ultimate high-stakes hunt. Whether you are outfitting a new startup or expanding a manufacturing fleet, liquidation auctions offer a unique opportunity to acquire high-quality assets at a fraction of their retail cost. However, the most successful bidders share one common trait: they understand the language of the auction floor.
At the heart of every transaction lies a phrase that can seem intimidating to the uninitiated: “As-Is, Where-Is.”
At Paul E. Saperstein Co., Inc. (PESCO), we believe that an informed bidder is a confident bidder. With over 60 years of experience in New England auctions, we are here to demystify this standard industry term and show you how our commitment to transparency turns potential risks into rewarding opportunities.
Demystifying the Terminology
When you see “As-Is, Where-Is” in an auction catalog, it isn’t a “trap”—it is a legal framework designed to facilitate a fast, transparent, and final sale.
Let’s break down the two components:
1. “As-Is” (The Condition)
This refers to the physical state of the item. It means the asset is being sold with all its existing faults, whether they are visible or hidden. The seller and the auctioneer make no warranties or guarantees regarding functionality, parts, or cosmetic perfection.
The Takeaway: You are purchasing the item in its current state at the moment the hammer falls.
2. “Where-Is” (The Logistics)
This refers to the location of the asset. It signifies that the buyer is responsible for removing the item from the auction site at their own expense and risk. This includes any necessary disassembly, professional rigging for heavy machinery, and transportation.
The Takeaway: You aren’t just buying the equipment; you are taking responsibility for its relocation.
Why “As-Is, Where-Is” Benefits the Buyer
It may seem counterintuitive, but this clause is actually a primary driver of the “deals” found at auction. Because the seller is relieved of the burden of offering a warranty or providing delivery, they are willing to accept a price determined by the market rather than a fixed retail markup. This “risk-transfer” is exactly what allows savvy bidders to secure assets at true liquidation value.
The PESCO Promise: Transparency Over Uncertainty
While the legal burden of “due diligence” falls on the buyer, a premier auction firm like PESCO goes to great lengths to provide you with the tools you need to bid with confidence. We bridge the information gap through three critical pillars:
I. Detailed Lot Descriptions and High-Resolution Media
We don’t believe in vague descriptions like “good condition.” Our team meticulously catalogs every item, providing:
- Multiple Angles: Detailed photos showing the front, back, and any visible wear or serial numbers.
- Technical Specs: We include make, model, year, and operational hours whenever available.
- Video Demos: For high-value industrial equipment auctions, we often provide videos of the machinery under power to demonstrate its current state.
II. The Power of the Preview Day
The single most important step in buying at liquidation auctions is the physical inspection. We strongly encourage all bidders to attend our designated preview days at our 16,000-square-foot Holbrook warehouse or on-site at the liquidation location.
- Hands-On Inspection: Bring your mechanic or an electrician to test specialized gear.
- Staff Expertise: Our knowledgeable staff is on hand to answer questions and provide any background info we have on the asset’s history.
III. Comprehensive Bidder Packets
For complex sales, such as business property liquidation auctions, we provide a “due diligence package.” This includes relevant terms and removal deadlines. By laying all the cards on the table, we ensure that the “As-Is” nature of the sale is backed by “As-Seen” clarity.
A Checklist for the Smart Bidder in Liquidation Auctions
To turn the “As-Is, Where-Is” rule to your advantage, follow this strategic approach:
- Read the Terms of Sale: Every auction is unique. Before placing a bid, review the payment deadlines and the “Removal Window.”
- Attend the Preview: We recommend that you never bid sight-unseen on high-value items if a preview is available.
- Calculate Total Cost: Your bid is the “Hammer Price.” Remember to factor in the Buyer’s Premium, applicable taxes, and the cost of hiring a rigger or mover for the “Where-Is” portion.
- Set Your Limit: Use our transparent catalog to determine the Fair Market Value of the item and stick to your budget.
Experience the Gold Standard of New England Auctions
At Paul E. Saperstein Co., our reputation is built on 60 years of integrity. We don’t just facilitate sales; we build relationships with a community of bidders who trust our process. When you bid with PESCO, you aren’t just buying “As-Is”—you are buying with the peace of mind that comes from working with a “Gold Standard” firm.
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