Join Date: Feb 2012
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Re: How Much Should I Offer
Having gone through this process fairly recently I think there is no fixed percentage. I think whether your offer is accepted depends somewhat on the position of the seller, how long the boat has been on the market and the amount of movement there has already been in the price.
When we tried to work out the value of the boat, there were four valuations that seemed to be in play.
1. Actual sales figures accessible by the broker (from Yachtworld, I think). I think these are to the seller's advantage because I do not think they included distressed sales.
2. The valuation reached by the surveyor (acting on our behalf).
3. The valuation used by the bank.
4. The valuation used by the insurance company.
We offered about 20% below the final listing price (about 35% less than the original listing price) but the seller seemed to have reached his floor already. The final sales price was about 20% off the original listing price. Our purchase price was lower than most other recent sales, the same as the vauation by the surveyor, higher than the initial valuation by the insurance company. The insurer (Boat US) was willing to insure the boat at the purchase price even though it was higher than their valuation.
We may have been able to get the boat at a lower price if we had more choices in our area (Lake Superior). However, it was the right boat in the right place at the right time for us. We were willing to pay a premium.
In the end, we are very happy with the boat and try not to think too much about how much we paid for it!
Last edited by shanedennis; 01-21-2013 at 04:18 PM.