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  #1  
Old 06-19-2013
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Question Initial Offer Question

I think I read here last year the initial offer one should make is 20% less than asking price. Is that about right?
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Old 06-19-2013
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Re: Initial Offer Question

Your offer should be based on what you think the boat is worth after looking at competing boats in the marketplace, blue book value, and boat condition.

There is no general rule on how much lower you should go.
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Old 06-19-2013
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Re: Initial Offer Question

I have always worked through a broker who helped me make a very good offer. I usually offer about 25% less than what I want to pay, I do not want to pay any more than I have to, and I do my best to drive a very hard bargain. I once bought a new Nissan Titan 4x4 four door pickup for $27,000.00 less than what the dealer was asking. It took three nights of negotiating until well after closing, and they finally took my offer, probably out of pure desire not to have me come back and stay until 1:00 AM another night, but no matter what the case I got the truck I wanted at the price I wanted to pay.

One key to negotiations on vehicles is patience and cash. If you are not going to finance the boat, car, semi-truck, house or whatever, or if you are not going to finance it with the seller, you have a much more firm position to bargain from and the seller has no hold on you. It is also common practice to post a surety or escrow with an offer in earnest to the seller while in negotiation. Using a broker who is working on your behalf will help with the legal paperwork, the offer in earnest, and the transfer and escrow of funds.

If you are buying from an individual you can still use the services of a broker, for a fee. If you would like to know more on this you can PM me here, I can check with my broker and have him put you in contact with someone from his company in your area, and they can help you if you are not working with someone already.

Remember the seller is going to try to get the best deal for himself, you should do the same.

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Old 06-19-2013
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Re: Initial Offer Question

For anyone who endured with me through this last year, on an almost purchase, this will probably cause your eyes to roll back into their sockets.

The boat? Sabre 34. Yeah, the same make & model but not the same year. "Remember the chainplates!"

But this one isn't $12K. It's over 4 times that, asking price. It's only about 40 miles from here so I can actually see it without hopping on a plane.

I think the price is too high, based on the pics and info provided, but I don't want to insult the owners and that be the end of it. So I was just wondering what the typical seller is used to hearing for the initial offer.
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Old 06-19-2013
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Re: Initial Offer Question

Quote:
Originally Posted by JulieMor View Post
....I was just wondering what the typical seller is used to hearing for the initial offer.
Absolutely, positively no answer to this. It depends on whether the seller has listed far above value, at value or, while rare, below value.

You should make an offer just a bit below what you think the boat is worth, whatever that relationship is to the asking price. Doesn't matter. Could be half. Could be asking price. Don't screw up your deal with averages. Know what you are buying.

Then sell yourself as a buyer! Do you have cash, can you demonstrate that you've bought before and aren't just a tire kicker, etc. They may jump on your offer, or you may need some wiggle room to come up to what you are actually willing to pay.

If one's self worth is based upon sitting at the bar and telling stories about how much lower than asking price you paid, then just make it up! Its no different than how big today's offshore waves and wind were.

Good luck.
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Old 06-19-2013
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Re: Initial Offer Question

HOw about an offer based on what I can afford (less then I believe the boat is worth) dont want to insult the seller but I really like the boat.. I will be cash in hand(ok bank) when I make the offer..
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Re: Initial Offer Question

In my world anyone selling anything used regardless of what it is knows that they will be countered on the price. No one gets asking price on a used boat, if it is what you want, and it fits your needs offer 15% to 20 % below asking price. If the seller is so sensitive to a counter offer that they tell you to never come back you likely don't want to do business with them, ever.

Happy hunting
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Re: Initial Offer Question

Quote:
Originally Posted by Minnewaska View Post
If one's self worth is based upon sitting at the bar and telling stories about how much lower than asking price you paid, then just make it up! Its no different than how big today's offshore waves and wind were.
That made me laugh! How many times in business did do the same thing to make the deal happen! I've been retired too long. Gotta get back the art of the deal.

I called the broker to see when we can take a look. Left a message. Now sharpening buying skills.
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Old 06-19-2013
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Re: Initial Offer Question

In this deal their are three parts. The buyer the boat and the seller. As the buyer you know all their is about the buyer but little about the boat and the seller. You do the best you can to learn about the boat, survey, sea trial etc. but at the end of the day the seller probably knows more about the boat.

If it is a hands off deal where you only get to talk to the broker it is hard to judge the real situation. If you can work it so you can talk to the seller you may be able to frame your offer to be more appealing.

Selling a boat is very emotional for a lot of people. Every situation is different. Some people are broke and think they need a specific number that is more than the boat is worth.
If you can show them with comps and repair estimates your offer is good you may get them to budge.
Other people are emotionally invested in the boat but have plenty of money. If you make yourself look like a younger version of them they may sell you the boat way under value just because they want to boat to go to a good home.

The more you can tailor your offer to the sellers real needs the better your chances.
Sometimes it is just about the money but often it is not.
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Old 06-19-2013
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Re: Initial Offer Question

Quote:
Originally Posted by Pegu club View Post
No one gets asking price on a used boat, if it is what you want, and it fits your needs offer 15% to 20 % below asking price...
I paid the asking price for my used boat. I had been trolling Craigslist, Yachtworld, and eBay for several weeks, and I knew the price was fair and the boat was what I wanted. I continue to check those sites (over a year now) and haven't seen an obviously better deal.

I am always interested in getting a good deal, but never interested in negotiating just for the sake of negotiating. I agree with Alex that your offer should be based on your opinion of the value of the boat, your own needs, and the current marketplace. If that offer is less than asking then so be it, but if it's the asking price (or higher, in some market situations) then that's OK too.
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